A standard student loan is simply set up by choosing one of the student loan tax codes within the employee's Employment Details tab. This tax code will be specified on the IR330 form provided by the employee. The available tax codes are:
M SL - the Standard tax code for a primary source of income with a student loan
ME SL - for lower earning employees with a student loan
S SL - for a secondary source of income with a student loan
SB SL - for lower earning secondary source of income with a student loan
SH SL and ST SL - for secondary income that raises the employee into higher tax brackets
STC SL - for employees have a special tax code (STC) and also have a student loan
To set this up for the employee
- Go to the Maintenance command centre and click Maintain Employees.
- Click Select Employee.
- Click the employee who is repaying the student loan then click OK.
- Click the Employment Details tab.
- In the Tax Code field, select the applicable tax code (as advised by the employee on the IR330 form). See our example below.
- If applicable, enter a Special SL Rate %. If no special student loan rate is advised by the employee (on the applicable form), leave this as 0.00%.
- Click Close.
Your employee is now set up for Standard Student Loan repayments and these will now automatically be deducted from your employee's pay.