Start student loan compulsory extra deductions

[KaliPPS]

Hi,

We've been contacted by the IRD to set up compulsory extra deductions for an employee to a certain amount due.

As this employee uses tax code M - i cannot do this the normal way through the 'compulsary deductions' tab - as they're not using a student loan tax code the 'student loan' bits and pieces are graded out. The student loan pay code therefore doesnt appear for me when i go to enter their pay so i can't manually enter either.

Can you please let me know how i go about setting this up in MYOB payroll (desktop version 2021.2)?

Extract from IRD letter below.

Cheers,

[jenniek · Accepted solution]

Hi @KaliPPS 

I would be going back to the IRD to question why this person should not be on an M SL code - maybe that is the reason why they now have an arrears of student loan deductions. Correct - you can't access the extra SL deductions on the compulsary deductions tab unless they are on an M SL code. You woud need to put this person on an M SL code, then deduct the difference maybe? It needs a conversation with the IRD.

[KaliPPS]

Thansk for your help.

Spoke to IRD and they believe they have got it wrong. Should have also issued a letter to advise to change his tax code to MSL - thank you.