You can create a deduction that deducts an amount per pay until the total amount owed is repaid. For example, an employee loans $2,000 to be paid in four instalments of $500. You create either an amount or percentage deduction with reducing balance ticked, then attach it to the employee, with the amount or percent per pay and the total amount to be repaid.
If the final instalment is less than the amount per pay, only the remaining balance is deducted. The employee will see the balance of the deduction on their pay advice.
Set up the Reducing Balance Deduction
To set up a Deduction After Tax, for example:
Go to Payroll, Maintenance, General, Additions and Deductions.
Click Add to add a new record.
Enter a unique Code, Shortcut Key, and Description.
Select Deduction After Tax in the Category dropdown.
Select Amount or Percent in the Type dropdown.
Leave the Amount or Percent field blank, as this can be set on the Employee's Record and used for multiple employees at any time.
If you are setting up a Percent deduction, select the required Hours Types and if applicable Overtime Type, Other Leave Reason and User Defined Leave.
In the Other area, tick Reducing Balance.
Click OK to save the record.
Link to the Employee Record
Go to Payroll, Maintenance, Employees, Employees.
Edit the Employee.
Select Additions & Deductions.
Click Add.
Select the Deduction.
Untick Use Default. When ticked this uses the value entered on the Deduction in Maintenance.
Enter the Amount per Pay to be deducted.
In Reducing Balance enter the total amount to be repaid.
Click OK and OK to save.