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T
Trees2
July 25, 2022
Question

Student Loans

  • July 25, 2022
  • 1 reply
  • 0 views

Hi,

 

I have one of my employees who has to start repaying his student loan as of this payrun.

I am on Standard payroll, when I looked up how to do this it said to go into deductions, loan repayments, write the title of the loan, value/ rate. 

As the calculation is 9% of the amount over the threshold, how does QB know to calculate it this way? Should there be somewhere else I am going exclusively for Student Loans?

Your help would be appreciated, I'm in a bit of a tizz with it all!!

Regards

Teresa

1 reply

G
GeorgiaC
July 25, 2022

Hi Teresa, thanks for joining the QB Community 🙂

 

The student loan is a statutory deduction and is entered on QB standard payroll in the employee panel > tax information > student loan > set drop-down to 'yes' - here an additional field will appear where you can select the plan type (1 or 2). The payroll deduction is then automatically calculated based on the employees earnings for the period, and the current thresholds for this can be found here. 

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