How do I add the Beneficial Loan component?
A director or employee receives a benefit through their employment if they are provided with a low-cost or interest-free loan. The employee is typically liable to pay tax on the difference between the interest calculated at the official rate and any interest, if applicable, that is actually paid. These loans are referred to as beneficial loans.
The Beneficial Loan component needs to be configured on company level before linking it on employee profiles.
Step 1: Search for and create the Beneficial Loan component.
Navigate > Configuration > Payroll > Payroll Config > Payroll Components
Note!
A different payslip name may be specified as required by entering the new payslip name in the "Payslip name" field.
Step 2: Add the component to the Deductions section on the employee's Recurring Payroll Components screen.
Navigate > Employee > Payroll Processing > Recurring Payroll Components > Deductions
Important!
The Beneficial Loan component can only be added on the Recurring Payroll Components screen.
Note!
Official rates are prescribed by the Treasury by means of Statutory Instruments. There are tables of official rates and may be accessed by the following link: Official rates
Related Articles
How do I define an income base formula on a component?
When adding a new component with an income base formula (defined income), the calculation can refer to various sources in the payroll for example, a specific component, the employee’s hourly rate or the employee’s package, to name a few. Besides ...Required Component Addition
After creating your company, it’s mandatory to add a specific payroll rubric. Follow the steps below: Navigate to Company Setup > Payroll > Payroll Components. In the window that opens, click If you would like to add a new component click here. ...How do I configure the Maternity Allowance component?
The Maternity Allowance component needs to be configured on company level before it can be added to employee profiles. Step 1: Search for and create the Maternity Allowance component. Navigate > Configuration > Payroll > Payroll Config > Payroll ...Where can I view a history of an employee's Pay Rate records?
A list of an employee's Pay Rate records can be viewed on the History Grid at the bottom of their Pay Rate Details screen. Navigate > Employee > Payroll Processing > Pay Rate Details > HistoryHow do I add the Advised Deduction component?
The Advised Deduction component needs to be configured on company level before linking it on employee profiles. Step 1: Search for and create the Advised Deduction component. Navigate > Configuration > Payroll > Payroll Config > Payroll Components ...