Assigning Loan Deductions

This chapter provides an overview of the loan deductions and discusses how to assign loan deductions and amounts.

Understanding Loan Deductions

This section discusses:

Delivered loan deductions.
Deduction processing rules.
Loan deductions and multiple resolutions.
Viewing delivered elements.

Delivered Loan Deductions

PeopleSoft delivers the following loan deductions:

LOAN (company loan)

Use the LOAN deduction to calculate regularly scheduled loan payments. You must define the loan amount, the repayment schedule, and other information related to the loan at the payee level.
LOAN AD PYMT (additional loan payment)

Use the LOAN ADD PYMT deduction to process additional payments a loan recipient may choose to make outside of the standard repayment schedule. You must define the amount, the payment date, and other information related to the additional loan payment at the payee level.

Note. The delivered loan deductions for the United States are defined as PS Delivered/Not Maintained. This means that you can modify them to fit your needs.

Deduction Processing Rules

Global Payroll for United States processes loan deductions following these rules:

Loans are deducted after taxes.
At termination, the system automatically deducts any remaining loan balance.
Global Payroll allows partial deductions for loans.
The system processes loan deductions during regular payroll runs only.
The LOAN deduction can go into arrears; arrears are tracked separately for each loan.

Loan Deductions and Multiple Resolutions

You can use Global Payroll's multiple resolution functionality to process multiple loan assignments for the same payee in a single period. To trigger more than one resolution of the element, attach a different loan ID to each assignment of the loan.

Note. We discuss multiple resolution functionality in detail in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook.

Viewing Delivered Elements

PeopleSoft delivers a query that you can run to view the names of all delivered elements designed for the United States. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook.

Assigning Loan Deductions and Amounts

This section provides an overview of loan assignments and discusses how to assign loan deductions and amounts.

Understanding Loan Assignments

The loan deductions have a calculation rule of amount with the Amount Typeset to Payee Level.This means that the system will not process loan repayments unless deduction amounts are assigned to specific payees on the Request Loans USA page.

This page is used to:

Assign loans and amounts.
Define payback schedules.
Process additional, non-payroll loan payments.
Track and view the status of previously assigned loans.
Adjust for interest payments.
Forgive existing loans.
Cancel existing loans.

Assigning Deductions and Amounts

To assign a loan and define loan amounts:

Access the Request Loans USA page and assign the loan to a payee.
Enter the total amount of the loan.

This is the amount that must be paid back in increments as specified in the loan repayment schedule (see step 3).
Define the loan repayment schedule.

The loan repayment schedule tells the payroll system how much to deduct in each pay period. For example, 100 USD per period, 300 USD per period, and so on.

On the Loan page you also specify:

The deduction used to process the loan.

You can use the delivered LOAN deduction, or select one that you have created.
Additional loan repayments (if any).

You can use the delivered LOAN AD PYMT deduction to process additional payments, or select one that you have created.

Note. Additional repayments are non-payroll payments made outside of the normal repayment schedule. They do not reduce the amount of gross pay; instead, they directly reduce the amount of the loan balance (LNS VR BALANCE).

Page Used to Assign a Loan and Define a Loan Amount

Page Name	Object Name	Navigation	Usage
Request Loans USA	GPUS_LOAN_PYE	Global Payroll & Absence Mgmt, Payee Data, Loans, Request Loans USA	Use to define loan deductions. Note. When loan information is saved on this page, a component interface automatically populates the Element Assignment by Payee and Payee Assignment by Element components with the loan data and supporting element values (Loan ID). All changes and updates to loan assignments must be made here and not on the Element Assignment by Payee or Payee Assignment by Element components.

Page Name

Object Name

Navigation

Usage

Request Loans USA

GPUS_LOAN_PYE

Global Payroll & Absence Mgmt, Payee Data, Loans, Request Loans USA

Use to define loan deductions.

Note. When loan information is saved on this page, a component interface automatically populates the Element Assignment by Payee and Payee Assignment by Element components with the loan data and supporting element values (Loan ID). All changes and updates to loan assignments must be made here and not on the Element Assignment by Payee or Payee Assignment by Element components.

Assigning a Loan

Access the Request Loans USA page.

Employee ID and Name

Displays the ID and name of the payee to whom you are assigning the loan.

Loan Assignment

Use the fields in the Loan Assignment group box to define unique instances of a loan deduction, and to define the total loan amount.

Element Name	Enter the name of the loan deduction that you want to assign to the payee. You can use the delivered loan deduction (LOAN), or a deduction that you have created. Note. The prompt table only displays deductions with an Element Category of LNS. See Defining Industries and Categories.
Loan ID	Enter a loan ID. The ID must be unique for each loan. Note. A single payee may have multiple loans; the system uses the loan ID to track loans separately.
Loan Issue Date	Enter the date on which the loan was issued. This field is for information only. It does not affect processing.
Total Loan Amount	Enter the total amount of the loan. This is the amount to be repaid in increments based on the pay period frequency. Note. The LOAN deduction is defined with a frequency of Use Calendar Period Frequency. This means that the amount you enter in the Schedule Amount field (defined below) is deducted each pay period, regardless of the pay period frequency (weekly, bi-weekly, monthly, and so on).
Reason	Enter the reason for the loan.
Loan Status	Specify the current status of the loan. Possible values are: In Progress Used for loans that are in the process of being repaid. Cancelled A loan is cancelled when it has been repaid, forgiven, or cancelled. Note. This is for information only. To stop or cancel a loan, you must enter a loan end date.
Currency Code	Specify the currency of the loan deduction.

Loan Payment Schedule

Use the fields in the Loan Payment Schedule group box to define the amount to be repaid each pay period.

Effective Date

Enter an effective date.

This date determines when the loan schedule becomes effective.

Note. You can define different effective-dated schedules for the same loan by entering additional rows of data.

Schedule Amount

Enter the amount to deduct each pay period.

Note. Use the fields in the Loan Payment Schedule group box to define a standard repayment schedule. If you want to define a one-time override to the scheduled repayment amount, enter the override amount using positive input.

Loan End Date

Enter a date after which the loan deduction should no longer be processed.

Non-Payroll Loan Payment

Use the fields in the Non-Payroll Loan Payment group box to record additional, non-payroll loan payments made by a payee. These are deductions that are not included in the regular schedule of loan repayments and which do not reduce the amount of net pay.

Note. Do not use the fields in the Non-Payroll Loan Payment group box to deduct additional, one-time loan payments through the regular gross to net process. If you want to define an additional, one-time repayment to be included in the regular gross to net process, create a positive input entry for the LOAN deduction with an Action Type of Additional.

Effective Date	Enter an effective date. This date determines when the additional loan payment is processed by the system.
Pay Group	Specify the pay group of the payee for whom you are processing the additional loan deduction.
Calendar ID	Specify the calendar in which you want the additional loan payment to be processed. The calendars available for selection are those associated with the pay group identified in the Pay Group field.
Adjustment Element	Identify the deduction you have defined to process the additional loan payment. You can use the delivered loan deduction (LOAN AD PYMT) or one that you have defined yourself.
Payment Amount	Enter the amount of the additional loan payment. This amount reduces the loan balance but has no effect on net pay.
Payment Reason	Enter a reason for the additional loan payment. Valid values are: Employee Payment Loan Forgiven Interest Adjustment Loan Cancelled
Payment Reference	Enter a payment reference. The payment reference is typically the number on the additional loan repayment check. It enables you to identify the payment.

Entering One-Time Overrides

When entering overrides for a LOAN or LOAN AD PYMT deduction using the One Time (Positive Input) component, you must specify the loan ID (LNS VR ID) of the loan for which you are entering the override.