Student Loan deductions

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Contributing Cover User Wilmz
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Contributing Cover User
New Zealand
Wilmz
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Student Loan deductions

Please advise how o set up for Student loan deductions - How do you get the Payroll program to deduct 12c / dollar after the threshold of $367/wk.

I also need to set up for Student Loan compulsory extra deductions @ 41.67% of the amount paid in Student Loan - can this be done automatically?

2 REPLIES 2
Ultimate Partner jenniek
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New Zealand
jenniek
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Re: Student Loan deductions

Hi there,

A student loan is automatically deducted when you use the appropriate SL code - choose M SL or ME SL etc for the employees tax code. MYOB knows the threshold amounts already.

To add an extra compulsary student loan amount - go your employees compulsary deductions screen in maintain employees and tick the SCLIR box at the bottom and enter in 4.167% - which actually deducts 41.67% correctly

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
MYOB Moderator Steven_M
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Steven_M
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Re: Student Loan deductions

Hi @Wilmz 

Just in addition to @jenniek 's post, Support Note: Student Loan deductions in Payroll would provide you with additional information into student loans and setting it up.

For the compulsory extra deduction I would be taking a look at Support Note: IRD Letter for varying student loan repayment rate (SLCIR) You would want to enter 5% not 4.167% as the deduction amount. You would enter 5% as oppose to 4.167% as the standard student loan rate is 12% therefore 41.67% x 12% = 5.

Kind regards,
Steven

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