Special Repayment Rate Process

Special repayment rates only apply to an employee's secondary income for a maximum of 3 months at a time. When the IRD sends an employee a special repayment letter or certificate, the employee needs to sign the letter and give it to their employer who can then set up the special repayment rate.

In this example, you need to change Julian Garrison's student loan repayment rate to 8%, and his record contains the following values:

Julian's special repayment letter from the IRD contains the following values:

1. Create a Student Loan - Special Rate deduction with the following values:

   Field	Values
   Calculation method	L. Student loan
   Deduction class	S. Student loan reduction
   Sub-class	Standard

   See Special Repayment Rate.

2. On Julian's Permanents tab, add a Student Loan - Special Rate deduction with the decreased percentage.

   Field	Value
   Details tab
   Percentage	8.0000
   Effective Dates tab
   Begin date	01/04/2013
   End date	30/06/2013

   

3. Attach a scanned copy the IRD letter to Julian's Documents tab.
4. Open Julian’s next pay.

   Exolvo copies the Student Loan - Special Rate deduction from Julian’s permanent transactions.

5. Process Julian’s transactions.

   Exolvo calculates Julian’s Student Loan – Special Rate value.

   

6. In June, review Julian's tax situation and update his record from 01/07/2013, if required.

Topic: 18128