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LucyFernando
Level 1

Student loan deductions on Paysuite

I have received a notice from HMRC that I have two employees who should have student loan deductions. 

 

I can see on the payslip there is a section to allow for this, but can not see where the data is input onto PaySuite to calculate the figures? Please can someone advise how to set this deduction up?

 

Thanks

Solved
Best answer September 25, 2018

Accepted Solutions
JamesC
QuickBooks Team

Student loan deductions on Paysuite

Hi LucyFernando,

 

Welcome to the UK Community Page for QuickBooks Online.

 

On Quickbooks, you only need to select if they are on Plan 1, or Plan 2 for their student loan. Open the Employee Details by double clicking on the employee, and under the Tax & National insurance section there's a tick box for Student Loan, and a setting to choose which Plan they are on.

 

The deductions will happen automatically based on their wages.

 

Thanks.

View solution in original post

10 REPLIES 10
JamesC
QuickBooks Team

Student loan deductions on Paysuite

Hi LucyFernando,

 

Welcome to the UK Community Page for QuickBooks Online.

 

On Quickbooks, you only need to select if they are on Plan 1, or Plan 2 for their student loan. Open the Employee Details by double clicking on the employee, and under the Tax & National insurance section there's a tick box for Student Loan, and a setting to choose which Plan they are on.

 

The deductions will happen automatically based on their wages.

 

Thanks.

View solution in original post

LucyFernando
Level 1

Student loan deductions on Paysuite

I was looking so hard I must have missed that box.

 

Thank you very much.

JamesC
QuickBooks Team

Student loan deductions on Paysuite

It's no problem, I'm guilty as charged for missing things right in front of me; and i work for QB! Smiley Happy

Please don't hesitate to post again should you have any other questions.

 

Thanks,

Jess W
Intuit

Student loan deductions on Paysuite

Hi, @LucyFernando

 

Great to see that your query was resolved! I am also in the same situation as your employees. Student Loan is creeping up on me. University seems like such a long time ago, can't wait for the money to be completely paid off.

 

I would love to know more about what you do? Smiley Very Happy

 


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VerityR
Level 1

Student loan deductions on Paysuite

I have this same problem, I have recieved a letter from HMRC saying to start taking SL repayments, I've checked and the employee details show a SL and plan, but it is not automatically taking money. I don't have the employee's past  employment earnings for this year and they only started in Nov. Can I force QB to take SL repayments? The letter doesn't say how much needs to be taken either!

Thanks in advance for any help,

Verity

katherinejoyceO
QuickBooks Team

Student loan deductions on Paysuite

Hi there, @VerityR

 

I'd be delighted to answer your first post in this thread. Let's set up your student loan repayment. Here's how: 

 

  1. Click Employees, then go to the Employees tab.
  2. Select the employee to open their profile.
  3. Click Actions, then select Deductions.
  4. In the Loan repayment section, click Add and enter the desired name. 
  5. Select the Rate type.
  6. Enter the default value or default percent
  7. Click Save.

 

When you create a paycheck, the deduction will show.

 

Here's an article to guide you more in adding or customising deductions in QuickBooks Online.

 

For future reference, read through this article to learn about managing your payroll account and employees effectively: QuickBooks Online Standard Payroll Hub

 

I'm always around here if you need additional help about your student loan, @VerityR. Have a great day ahead. 

VerityR
Level 1

Student loan deductions on Paysuite

I looked at this option, but I wasn't convinced creating a loan repayment and calling it 'student loan' would be the same as paying back an actual government student loan, given that the system is already set up for that. I also have no idea what amount to deduct.

VerityR
Level 1

Student loan deductions on Paysuite

Also in the page you linked to about deductions it says"After tax deductions are taken out after statutory deductions such as tax, NI and student loans have been taken from the employee’s pay." suggesting this would not be a student loan deduction

VerityR
Level 1

Student loan deductions on Paysuite

Any government info I look at says this...

You do not need to calculate their loan repayments - your payroll software will do this for you.

 

VerityR
Level 1

Student loan deductions on Paysuite

Thank you very much for your help.

I think I've figured it out. I believe the scary letter from HMRC was actually just to inform me he had a student loan (he didn't put it on the starter check list) so hopefully adding it to his employment details is actually all they meant (despite the wording very much suggestion deductions should be taken) as he is below the monthly threshold given on gov.uk for plan 1 (You’ll only repay when your income is over £372 a week or £1,615 a month (before tax and other deductions). You pay back 9% of your income over the Plan 1 threshold.) 

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