PeopleSoft Enterprise Global Payroll for the United Kingdom 9.1 PeopleBook

Administering Loans

This chapter provides an overview of loan deductions and discusses how to:

Enter payee loan information.
Override loan repayment amounts.
Process loans.
View payees' processed loans.

Understanding Loan Deductions

This section lists prerequisites and discusses:

Delivered loan deduction.
Viewing delivered elements.

Prerequisites

Before you can enter and process payee loans, you must:

Define loan types for your organization.
Set up the processing structure to include loans.

Global Payroll for the UK delivers a loans section that is included in the delivered payroll process list. You can use the delivered structure or create your own sections and process lists.

See Also

Setting Up Employee Loan Types

Delivered Loan Deduction

These two deductions are used to process loan repayments:

LOA DD LOAN (employee loan).

Use this deduction for the normal loan repayment. This deduction is only processed if you enter loan information for a payee on the Employee Loans page. You can override the deduction amount using positive input (with supporting element overrides).

For payees with more than one loan, the payroll process resolves the deduction multiple times. Multiple resolution is described in the PeopleSoft Enterprise Global Payroll 9.1 PeopleBook.
LOA DD EXCEP (loans — exceptional repayment).

Use this deduction for processing exceptional loan payments. An exceptional payment reduces the loan balance but is not deducted from net pay.

See Also

Overriding Loan Repayment Amounts

Multiple Resolutions

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for the United Kingdom. Instructions for running the query are provided in PeopleSoft Enterprise Global Payroll 9.1 PeopleBook.

Entering Payee Loan Information

This section discusses how to:

Enter employee loan data.
Record loan beneficiaries.
Enter loan interest for P11D reporting.

Pages Used to Enter Payee Loan Repayments

Page Name	Definition Name	Navigation	Usage
Employee Loans	GPGB_EE_LOAN_DT	Global Payroll & Absence Mgmt, Payee Data, Loans, Maintain Loans GBR, Employee Loans	Set up and adjust loan data for payees. Use this page to specify the loan type, loan amount, the interest rate and amount.
Employee Loans - Comments	GPGB_COM_SEC	Click the Comments link on the Employee Loans page.	Enter comments related to the loan, if required.
Loan Beneficiaries	GPGB_EE_LOAN_BN	Global Payroll & Absence Mgmt, Payee Data, Loans, Maintain Loans GBR, Loan Beneficiaries	Enter the names of the beneficiaries of a loan.
P11D Loan Interest	GPGB_EE_LOAN_IN	Global Payroll & Absence Mgmt, Payee Data, Loans, Maintain Loans GBR, P11D Loan Interest	Record the interest paid by the payee for each tax year during the repayment period. The information entered on this page is used for P11D reporting.

See Also

Extracting P11D Information

Entering Employee Loan Data

Access the Employee Loans page (Global Payroll & Absence Mgmt, Payee Data, Loans, Maintain Loans GBR, Employee Loans).

Loan ID

Enter a unique identifier for each employee loan. This can be any identifier you require. The loan ID is used as user key1 for the loan accumulators.

Loan Type ID

Select the loan type. You define loan types on the Loan Type Definition GBR page. The Loan Type ID is used as user key2 for the loan accumulators and is used as an identifier to set up deduction recipients.

See Setting Up Deduction Recipients.

Repayment Method

Displays the repayment method:

Repay Fixed Amount Per Period: Payee pays a fixed amount each pay period.

Repay Over Number of Periods: Payee pays the loan over a fixed number of pay periods.

The repayment method is defined when you set up loan types on the Loan Type Definition GBR page.

See Setting Up Employee Loan Types.

Processing Priority

If an employee has multiple employee loans, assign each loan a priority. Priority determines the order in which the loans are processed. The lower the number, the higher the priority.

Number of Joint Borrowers

Enter the number of borrowers for joint loans. This information is required for P11D reporting.

Begin Date

Displays the start date for the loan. This is the date you entered for the Loan Start row in the Loan Adjustment and Repayment Holiday group box.

This date is used in P11D reporting.

End Date

Displays the date on which the loan was repaid or loan processing was terminated. The system populates this field when:

The loan is repaid in full.

An employee is terminated.

You enter a Reason of Stop Loan on this page.

The Update Loan End Date button updates the End Date field if loan processing results exist.

This date is used in P11D reporting.

See Understanding Loan Processing.

Update Loan End Date

Click this button to update the End Date field. The system checks loan processing results and populates the End Date field if the payroll has been finalized and the loan has been repaid, or the employee was terminated. A warning message appears if the system does not find a value to populate the end date (because the loan balance is greater than zero or the payroll results are not finalized).

Loan Adjustment and Repayment Holiday - Employee Loans

Use this group box to:

Define the loan start date and loan repayment information when you add a loan initially.
Make adjustments to existing loans.

Access the Employee Loans tab.

Effective Date	Enter the loan start date, loan end date, or date of the changes to the loan data, according to the reason you select. For the loan start date, enter the date when the first repayment is made. The first loan repayment is taken out of the employee's earnings in the pay period within which the start date falls.
Reason	Select a reason for the change to the loan information. Options are: Loan Start: Use this to define the loan data initially. You cannot save this page without a row for the loan start information. Stop Loan: Indicates when the loan was repaid or loan processing was terminated. The system inserts a Stop Loan row when the loan is repaid or when a payee is terminated. You can also add a row manually to force the system to stop processing a loan. See Understanding Loan Processing. Holiday Suspend Recovery: Stop loan processing temporarily. You can only suspend loan deductions if the loan type allows repayment holidays. See Setting Up Employee Loan Types. Holiday Resume Recovery: Restart loan processing after a repayment holiday. This reason must follow a Holiday Suspend Recovery row. Interest/Amount Change: Select to make an adjustment to the loan amount or the interest included in the loan. P11D Reporting: Select if there is a change in P11D reporting. Revised Repayment Plan: Select to change the repayment amount or the number of repayment periods. Depending on the repayment method for the loan, the system makes the Loan Repayment Periods or the Repayment Amount field available when you select this reason.
Initial Loan Amount	Enter the initial amount of the loan that was taken out by the employee. The value you enter must include interest. This field is available when you select Loan Start or Interest/Amount Change only in the Reason field.
Interest Included in Loan	Enter the total interest paid on the loan.
Interest Rate Override	Enter the interest rate for the payee's loan, if the default interest rate for the loan type does not apply. The default interest rate is defined on the Loan Type Definition GBR page.
Loan Repayment Periods	Enter the number of periods over which the loan is to be repaid. Periods are determined by the frequency of the pay period that you defined. This field is not available if the repayment method is Repay Fixed Amount Per Period. You can adjust the repayment period for existing loans if you select Revised Repayment Plan or Interest/Amount Change in the Reason field.
Repayment Amount	Enter the amount that is deducted from the payee's net pay each pay period. You can change the repayment amount if you select Holiday Resume Recovery, Revised Repayment Plan, or Interest/Amount Change in the Reason field. If the repayment method is Repay Over Number of Periods this field is not editable. Instead, the system calculates and displays the repayment amount (initial loan amount divided by the number of loan repayment periods).
P11D	Select this check box if the loan should be included in the payee's P11D report. The system displays the default for the loan type but you can override the default if required. This field is available if you select Loan Start or P11D Reporting in the Reason field.

Loan Adjustment and Repayment Holiday - Comments

Access the Comments tab.

Comments

Click this link to access the Comments page where you can enter comments if required.

Recording Loan Beneficiaries

Access the Loan Beneficiaries page (Global Payroll & Absence Mgmt, Payee Data, Loans, Maintain Loans GBR, Loan Beneficiaries).

The beneficiary information is not used in loan processing or P11D reporting. The data is for information only.

Beneficiary Id	Enter a number for each beneficiary. The system automatically increments this value, but you can override this value.
Beneficiary	Enter the name of the person or persons to whom the loan was paid.

Entering Loan Interest for P11D Reporting

Access the P11D Loan Interest page (Global Payroll & Absence Mgmt, Payee Data, Loans, Maintain Loans GBR, P11D Loan Interest).

Tax Year (End), From, and Thru

Enter the year in which the loan is reported to HM Revenue and Customs (HMRC). The system displays the start and end dates for the tax year in the From and Thru fields.

P11D

Indicates if the report is included on the payee's P11D report for the reportable tax year. This is determined by the setting of the P11D check box on the Employee Loans page as at the end of the tax year you specified.

Interest Paid in Tax Year

Enter the interest paid during the tax year. This information is included in the P11D report.

Overriding Loan Repayment Amounts

This section provides an overview of overrides for loan repayments and discusses how to:

Enter positive input to override loan repayments
Enter positive input using delivered template.

Understanding Overrides for Loan Repayments

The amount deducted each pay period to repay a loan is defined on the Employee Loans page. When you enter an employee loan, you either define the repayment amount or the system calculates the repayment amount based on the repayment period.

However, there are times when you need to adjust the repayment amount for one pay period. There are 3 ways in which you can vary the repayment amount. Using positive input, you can enter an:

Override amount

An override specifies the amount to deduct from the payee's net pay. This overrides the normal repayment amount, that is defined on the Employee Loans page, for the selected pay period.
Additional amount

If you specify an additional amount, the system resolves the loan deduction twice. Once for the normal repayment amount and a second time for the additional amount. For example, if the repayment amount is 150GBP but the payee wants to pay 50GBP extra for one pay period, you enter a positive input entry for 50GBP.
Exceptional amount

An exceptional payment is not deducted from a payee's net pay, but is deducted from the loan balance. For example, if a payee repays a lump sum payment of 1000GBP by cheque (in addition to their normal repayment amount), you enter positive input for 1000GBP using the deduction LOA DD EXCEP. This ensures that the amount is not deducted from net pay.

Note. When you enter positive input for loans, you must enter a supporting element override to specify the loan ID and the loan type. Set the variable LN VR LOAN ID to the loan ID and variable LN VR LOAN TYPE to the loan type of the loan id. This is explained in detail in the next two sections.

You can enter positive input in two ways, using the Positive Input page or using the template that is delivered for loans.

See Also

Working with Positive Input

Pages Used to Override Loan Repayment Amounts

Page Name	Definition Name	Navigation	Usage
Positive Input	GP_PI_MNL_ERNDED	Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, One Time (Positive Input)	Create the positive input entry for a employee for a selected pay period. Select the loan deduction element and specify the override, additional, or exceptional amount.
Positive Input - Details	GP_PI_MNL_SEC	Click the Details button on the Positive Input page.	Create supporting element overrides to specify the loan ID and loan type.
Positive Input by Template	GP_PI_BULK_SSN	Global Payroll & Absence Mgmt, Absence and Payroll Processing, Prepare Payroll, Positive Input by Template, Positive Input by Template	Use the template delivered for the UK to enter positive input for loans.

Entering Positive Input to Override Loan Repayments

Access the Positive Input page.

To create a positive input entry for the selected employee:

Complete the fields on the Action tab as follows:

Entry Type

Select Deduction.

Element Name

Select one of these elements:

LOA DD LOAN: If the amount must be deducted from net pay.

LOA DD EXCEP: If the positive input is for an exceptional payment, which is not deducted from net pay. When this deduction is processed, it reduces the loan balance but is not deducted from net pay.

Action Type

Select one of these options:

Override:To override the repayment amount for the pay period.

Additional:To enter an additional repayment amount or an exceptional amount.

Complete the fields on the Main Components tab as follows:

Amount

Enter the override, additional, or exceptional amount.

Currency

Select GBP.

Click the Details link to access the Positive Input - Details page and enter supporting element overrides to define the loan ID and loan type:

Element Entry Type	Element Name	Character Value
Variable	LN VR LOAN ID.	Enter the loan ID
Variable	LN VR LOAN TYPE	Enter the loan type

Entering Positive Input Using Delivered Template

Access the Positive Input by Template page (Global Payroll & Absence Mgmt, Absence and Payroll Processing, Prepare Payroll, Positive Input by Template, Positive Input by Template).

Action Type

Select one of these options:

Override:To override the repayment amount for the pay period.

Add:To enter an additional repayment amount or an exceptional amount.

Employee Loan: Amount

Enter the override or additional amount. Leave this field blank if the positive input is for an exceptional amount.

Loan – Exceptional repayment: Amount

Enter the exceptional amount. Leave this field blank if the positive input is for an override or additional amount.

Supporting Elements

Access the Supporting Elements tab.

Employee Loan ID (Character)

Enter the loan ID defined for this loan on the Employee Loans page.

Employee Loan Type (Character)

Enter the loan type.

Processing Loans

This section provides overviews of loan processing, multiple resolution of loan deductions, and the Update Loan End Date Process, and discusses how to run the Update Loan End Date process.

Understanding Loan Processing

Loan deductions are calculated and processed in the normal payroll process. Loans are a post-tax deduction and processed after statutory deductions for tax, National Insurance (NI), court orders, and student loans.

Loan processing checks:

For loan repayment holidays.

If there is a repayment holiday defined within the pay period, the loan isn't processed. When you view payee messages you will see the message "Loan Repayment Holiday detected (17135,422)"
Whether the loan has been repaid or stopped.

If the loan has been repaid, the employee terminated, or the loan stopped, you will see the payee message "Last repayment made this period (17135,423)"
For positive input entries.

The system checks whether positive entries for loans are for loan IDs that are being processed in pay period. If a positive input entry is for a loan ID that will not be processed in the period, you will see the payee message "Positive Input for Loan Id %1 incorrect (17135,424)"

The system writes the amounts processed for the pay period to a writable array. You can view the data in this writable array using the Review Loans GBR page.

See Viewing Payees' Processed Loans.

After you have run and finalized payroll for the pay period, you need to run the Update Loan End Date application engine process. The purpose of this process is to update the employee loans table with a loan end date when loans have been repaid.

Note. The Update End Date button on the Employee Loans page performs the same function as the Update Loan End Date process for an individual payee.

Understanding Multiple Resolution of Loan Deductions

Employee loans use one loan deduction, LOA DD LOAN, to process loan repayments. A driver accumulator generates multiple resolutions of this deduction.

Multiple resolutions of the loan deduction, LOA DD LOAN, are driven by the accumulator LOA AC LOAN DRV. This accumulator has two user fields:

User Field	Element	Description
User Field 1	LN VR LOAN ID	Identifies loan ID
User Field 2	LN VR LOAN TYPE	Identifies loan type

Example: Multiple Resolutions of Loan Deduction

In this example, the payee has three loans:

Loan ID	Loan Type	Repayment Amount (GBP)
CAR2005	CAR	300
SSNT2005	SSNT	150
SSNT2006	SSNT	200

When this is processed in payroll, it creates three instances of the driver accumulator:

User Field1	User Field 2	Repayment Amount (GBP)
CAR2005	CAR	300
SSNT2005	SSNT	150
SSNT2006	SSNT	200

This creates three instances of the deduction LOA DD LOAN in the payroll results:

Instance	Amount
1	300
2	150
3	200

Understanding the Update Loan End Date Process

Loan deductions are calculated and processed in the normal payroll process. However, the payroll process does not update the loan end date that determines whether the loan is processed in the next pay period.

After you have run and finalized payroll for the pay period, you need to run the Update Loan End Date application engine process (GPGB_LOAN). The purpose of this process is to update the employee loans table with a loan end date when loans have been repaid or loan processing or the employee is terminated. The process checks the most recent finalized payroll results for employees with active loans. If a loan has been repaid or the employee was terminated in the pay period, the process inserts a row in the employee loan table with a Stop Loan reason and populates the Loan End Date field with the pay period payment date. The next time you run the payroll process, the employee loans that have an end date are not processed.

You can run the process manually or schedule the process to run at regular intervals automatically.

Payroll administrators can use the Update End Date button on the Employee Loans page to perform the same function as the Update Loan End Date process for an individual payee.

See Also

Entering Employee Loan Data

Page Used to Update Loan End Dates

Page Name	Definition Name	Navigation	Usage
Update Loans End Date GBR	GPGB_RC_LOAN_UPD	Global Payroll & Absence Mgmt, Absence and Payroll Processing, Update Loans End Date GBR, Update Loans End Date GBR	Run the Update Loan End Date application engine process (GPGB_LOAN).

Running the Update Loan End Date Process

Access the Update Loans End Date GBR page (Global Payroll & Absence Mgmt, Absence and Payroll Processing, Update Loans End Date GBR, Update Loans End Date GBR).

Stream Number

If you use streams in your payroll processing, select the stream you want to process and the system displays the range of employee IDs included in that stream.

When the Update Loan End Date process has completed, view the message log to see which employee loans have been updated. The log lists the employee ID, loan ID, loan type and the end date.

Viewing Payees' Processed Loans

This section discusses how to view processed loans.

Page Used to View Processed Loan

Page Name	Definition Name	Navigation	Usage
Review Loans GBR	GPGB_EE_LOAN_RV	Global Payroll & Absence Mgmt, Payee Data, Loans, Review Loans GBR, Review Loans GBR	Review details of payee loans that have been processed. The page shows the amounts deducted, total amounts repaid, and the outstanding balance.

Viewing Processed Loans

Access the Review Loans GBR page (Global Payroll & Absence Mgmt, Payee Data, Loans, Review Loans GBR, Review Loans GBR).

This page displays loan information from the latest payroll results.

Tax Period	Displays the tax period.
Amount Period	Displays the repayment amount for the tax period.
Arrears	Displays the arrears for the pay period. Loan repayments can go into arrears if you select the Perform Net Pay Validation check box on the Arrears page for the loan deduction LOA ADD LOAN. If the employee's net pay is too low to deduct the normal repayment amount, this field displays the arrears amount. See Modifying and Updating the Loan Deduction.
Exceptional Amount	Displays the exceptional amount paid by the payee during the pay period. Exceptional amounts are not deducted from the payee's net pay but reduce the outstanding balance. See Understanding Overrides for Loan Repayments.
Amount for Tax Year	Displays the total amount repaid this tax year, including exceptional amounts.
Total Amount Repaid	Displays the total amount repaid to date.
Balance Amount	Displays the amount outstanding.
End Date	Displays the date on which the loan was repaid in full or the date when loan processing was terminated. Loan processing may stop before a loan is repaid if a payee is terminated or you manually stop loan processing. The end date is populated by the Update Loan End Date process or by using the Update Loan End Date button on the Employee Loans page. See Entering Employee Loan Data.

Processing Details

Access the Processing Details tab.

This tab displays calendar group, segment details, and the payment date.

Loan ID	Enter a unique identifier for each employee loan. This can be any identifier you require. The loan ID is used as user key1 for the loan accumulators.
Loan Type ID	Select the loan type. You define loan types on the Loan Type Definition GBR page. The Loan Type ID is used as user key2 for the loan accumulators and is used as an identifier to set up deduction recipients. See Setting Up Deduction Recipients.
Repayment Method	Displays the repayment method: Repay Fixed Amount Per Period: Payee pays a fixed amount each pay period. Repay Over Number of Periods: Payee pays the loan over a fixed number of pay periods. The repayment method is defined when you set up loan types on the Loan Type Definition GBR page. See Setting Up Employee Loan Types.
Processing Priority	If an employee has multiple employee loans, assign each loan a priority. Priority determines the order in which the loans are processed. The lower the number, the higher the priority.
Number of Joint Borrowers	Enter the number of borrowers for joint loans. This information is required for P11D reporting.
Begin Date	Displays the start date for the loan. This is the date you entered for the Loan Start row in the Loan Adjustment and Repayment Holiday group box. This date is used in P11D reporting.
End Date	Displays the date on which the loan was repaid or loan processing was terminated. The system populates this field when: The loan is repaid in full. An employee is terminated. You enter a Reason of Stop Loan on this page. The Update Loan End Date button updates the End Date field if loan processing results exist. This date is used in P11D reporting. See Understanding Loan Processing.
Update Loan End Date	Click this button to update the End Date field. The system checks loan processing results and populates the End Date field if the payroll has been finalized and the loan has been repaid, or the employee was terminated. A warning message appears if the system does not find a value to populate the end date (because the loan balance is greater than zero or the payroll results are not finalized).

Tax Year (End), From, and Thru	Enter the year in which the loan is reported to HM Revenue and Customs (HMRC). The system displays the start and end dates for the tax year in the From and Thru fields.
P11D	Indicates if the report is included on the payee's P11D report for the reportable tax year. This is determined by the setting of the P11D check box on the Employee Loans page as at the end of the tax year you specified.
Interest Paid in Tax Year	Enter the interest paid during the tax year. This information is included in the P11D report.

Amount	Enter the override, additional, or exceptional amount.
Currency	Select GBP.

Employee Loan ID (Character)	Enter the loan ID defined for this loan on the Employee Loans page.
Employee Loan Type (Character)	Enter the loan type.