Student Loan Deductions

Student Loan Deductions

Notices from IRD 

If your employee's tax code is M SL it means that they have a student loan and each pay a percentage of their gross taxable earnings will be used to pay their loan. Part of their earnings are exempt from the calculation, this is known as the Student Loan threshold.
If you have received a notification from IRD to deduct an extra amount for Student Loan Repayments or Change student loan deduction rate for one of your employees, you are required to do this by law. 
Check the details of the payday and pay period on the notice, if it is incorrect you will need to contact IRD.
The date you must start deducting is stated on the notice.
iPayroll reports this to Inland Revenue with your Payday filing.
In the Payday that you have been instructed to begin deductions, you will need to add this to their Timesheet Template as a permanent deduction.
IRD advises that SLCIR should be 5%, currently the standard student loan rate is 12%. Previously they requested 41.67% of 12% which is 5% of the student loan being deducted.
For more information here IRD Student Loan 

Student loan compulsory extra SLCIR - Student Loan Required

Edit  Timesheet Template

  1. People > View People
  2. Select the Employee's name.
  3. In the Timesheet Template
  4. Enter 41.67 in the Green Qty box.
  5. Select > Element SLCIR - Student Loan Required from the drop down menu
  6. + Add
  7. Enter the Balance or Total amount to recover from the notice
  8. Save
  9. When you Open the pay, the deduction will be taken.
  10. If the pay is Open 
  11. Select > Deduct Now




Change student loan deduction rate

Edit Personal Details

  1. People > View People
  2. Select the Employee's name.
  3. In Personal Details > Tax Details 
  4. Select > View advanced Tax Details 
  5. Special Student Loan > enter % as per Notice from IR
  6. Save


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