Loan Requests And Loan Types 0 0

What Loan Requests Do

Loan Requests allow employees or administrators to record employee loans that may be repaid through payroll deductions.

Loan Types define the categories of loans a company uses.

Practical Example

An employee receives a $1,000 company loan to be repaid over 10 pay periods. Payroll creates or approves the loan and confirms that $100 is deducted each period until the loan is repaid.

Basic Steps

1. Configure Loan Types if needed.
2. Create or approve the employee loan request.
3. Enter the loan amount and repayment terms.
4. Confirm the deduction schedule.
5. Review deductions in Draft Review.

Common Mistakes

• Creating a loan without repayment terms.
• Deducting the wrong amount.
• Continuing deductions after repayment is complete.
• Not explaining the loan deduction to the employee.

Related Articles

• Loan Identifier Report
• Payroll Item Tax Behavior
• Employee Payroll Overview