I am using QB Advanced Payroll and have been informed by HMRC that one of my employees has to start paying a plan 2 student loan.
I have ticked the student loan box under 'Tax and NI Details' for the employee, but I can't find any instructions anywhere for what else I need to do. I clicked on 'Pay Run Inclusions' for the employee and then on 'HMRC Adjustments' where I found 'student loan' so I thought that I must need to enter more details there. However, the only options for deduction are 'Fixed', 'Percentage of Gross', 'Percentage of Pensionable Earnings', 'Percentage of Taxable Earnings', and 'Percentage of NIable Earnings'. None of these are in line with Plan 2 guidelines which say the amount to be deducted should be 9% of earnings above the threshold of £524 per week or £2274 per week.
I'm obviously missing something but this is the first time I've dealt with a student loan. Can anybody please tell me how to enter the details so that QB calculates the student loan correctly?
Thanks
Vicky