Amount of Student Loan additional repayment is lower after upgrading to Accounts Business 2014.

Legacy KB ID: 5091

Question

Why has the amount of the Student Loan additional repayment fallen since upgrading to Accounts Business 2014?

 

Answer

Adjust the percentage for the SLCIR payroll item to the percentage indicated by the IRD.

 

The Issue

Previously the SLCIR payroll item calculated the additional Student Loan repayment as a percentage of Gross Payment.

The calculation method for the Student Loan additional repayment has now been changed to a percentage of the Student Loan normal repayment amount. 

The IRD should provide you will an instruction to withhold an additional percentage for the repayment of the Student Loan over a given time.  This percentage will generally be 41.67% of the existing normal Student Loan Repayment, however the rate may be different in some cases. 

In previous releases to calculate teh corect amount you would have entered tis as 5% of gross payments.  Now in Accounts Business 2014 that 5% is being calculated on the standard Student Loan repayment, resulting in a smaller amount of additional repayment than in Accounts Business 2013.

 

Solution

Adjust the rate in the SLCIR payroll item to the IRD specified rate (eg: 41.67%)

1.    Lists > Payroll Item List > click on your SLCIR payroll item;

2.    Click Next until you get to the Calculate based on quantity screen;

3.    Select Neither option;

4.    Click Next until you get to the Default rate and limit screen;

5.    Change the percentage to that specified by the IRD (eg: 41.67%);

6.    Click Finish.

 

 

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