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Let me help share some information about assigning a deduction item for your employees.
You're already on the right track in creating the loan deduction. If your employee borrows additional amount, you can add this on the annual limit so you won't have to wait until they're done paying the previous loan.
QuickBooks will automatically stop deducting once you reached the annual limit you entered on your employee's pay information.
If you want to learn more about the types of voluntary deductions in QuickBooks, you can refer to this article: Set up voluntary deductions in Online Payroll.
That should do it. As always, you can reach out to our site if you need more payroll references in the future: Help articles for QuickBooks Payroll.
Keep me posted if you have additional questions about your payroll deduction item. I'm always here to help.