Voluntary Fixed Process

Employees can voluntarily make additional student loan repayments, and they usually make them as a fixed amount not a percentage of income. You set up additional repayments as permanent transactions. When the employee asks you to set up an additional repayment, you should determine the required start and end dates so you can enter them in the permanent transaction. When you open a pay for the employee, Exolvo will copy the fixed deduction across to the employee's transactions. When you process the pay, Exolvo automatically creates the standard 12% student loan transaction and calculates the voluntary fixed transaction value.

In this example, Michael Smith already makes standard student loan repayments and he wants to make an additional voluntary repayment of $20 per week from 01/04/2013 to 31/03/2014.

Michael's record contains the following values:

1. Create a Student Loan - Voluntary $ deduction with the following values:

   Field	Values
   Calculation method	F. Fixed amount
   Deduction class	S. Student loan reduction
   Sub-class	Voluntary (SLBOR)

   See Voluntary - Percentage and Fixed.

2. On Michael’s Permanents tab, add a permanent Student Loan – Voluntary $ deduction for the following values:

   Field	Data
   Quantity	1.00
   Rate	20.0000
   Note: Michael wants to pay an additional $20 per week.
   Begin date	01/04/2013
   End date	31/03/2014

   

3. Open Michael’s next pay.

   Exolvo copies the Student Loan – Voluntary $ deduction from Michael’s permanent transactions.

4. Process Michael’s transactions.

   Exolvo automatically creates Michael's standard 12% student loan transaction and calculates his Student Loan – Voluntary $ values.

   

Topic: 18130