Catch-up

If an employee has not made sufficient student loan repayments in previous years, IRD will tell their employer to deduct additional repayments to recover the shortfall. The employee has to make these commissioner-instigated repayments in addition to their standard 12% repayment.

Note: The catch-up situation is not the same as the arrears payment situation that uses a deduction with Calculation method = "A. Arrears payment".

If any employees have to make commissioner-initiated repayments, then you need to set up a catch-up deduction as a reducing balance loan with Sub-class = "Catch-up (SLCIR)".

Note: SLCIR stands for Student Loan Commissioner of Inland Revenue required deduction.

1. Model the standard deduction to create a catch-up deduction with a unique Code and Description.
2. On the Details (i) tab, enter the following value:

   Field	Values
   Reducing balance	Yes

   

3. On the Details (iii) tab, enter the following values:

   Field	Values
   Calculation method	L. Student loan
   Deduction class	S. Student loan reduction
   Sub-class	Catch-up (SLCIR)

   

For more information, see Catch-up Process.

Topic: 18122