Loans
Efficiently manage employee loans and monthly repayments
Agrigistics’s payroll system allows you to efficiently manage employee loans and their monthly repayments. There are two types of loans available:
Payroll-Processed Loans:
These loans are disbursed directly through the employee’s payslip.
The specified loan amount is added to the employee’s payslip, and monthly repayment deductions are automated during payroll processing.
The loan balance and repayment details are transparently displayed on the employee’s payslip for easy tracking.
External Loans:
These loans are issued directly to the employee outside of the payroll system.
Repayments can still be tracked by recording balances and deductions in the payroll system, even though the initial disbursement was done externally.
This approach allows for flexible loan management while maintaining accurate records within your payroll system.
In the following sections, we will detail how to set up, disburse, and track repayments for both types of loans.
There is no interest on loan amounts paid out to employees
Loan Setup & Configuration
In Agrigistics, loans are set up as a specific type of deduction within the pay run templates. This configuration allows for efficient management of multiple loan types while maintaining clarity and transparency on employees’ payslips.
Key features include:
Multiple Loan Accounts: You can configure multiple loans, each representing a distinct loan balance or account. For example:
A loan for medical expenses.
A loan for issuing protective equipment.
Simultaneous Repayments: Employees can repay multiple loans concurrently, with each loan maintaining its own balance and repayment schedule.
Payslip Transparency: All loan balances, repayment amounts, and deductions will be clearly displayed on the employee’s payslip. This ensures transparency for employees regarding their outstanding balances and ongoing repayments.
In the next section, we will guide you through the steps for configuring these loans and incorporating them into your payroll process.
Create a new Loan Template
A loan pay run template is only created once and can be reused multiple times on one or more employees.
Navigate to Payroll / Settings / Pay run templates and click on the "Add template" button to start.
Template name: Provide any name for this loan. This name will be displayed on the payslip and reports.
Description (optional): Add additional information that will also be displayed on the payslip.
Type: Select Deduction.
Deduction Type: Select Loan.
SARS code: This field is disabled as all loans and savings are exempt from any SARS reporting.
Loan balance amount:
Payout: If a value is provided here, this will be the amount that will be disbursed to the employee on their payslip. The amount here will increase their pay by the provided amount. Use this option if the employee has not received the loan amount yet.
Adjustment: No funds will be disbursed to the employee. Use this option if the employee has already received the funds or if the company has already paid for the loan.
Loan repayment amount: This will be the amount that will be deducted from the employee per period. If the outstanding balance of the employee is less than the repayment amount, the repayment amount will be adjusted to that of the outstanding balance. The repayment will automatically stop once the loan is repaid.
Click on Add to save the loan template
Add loan template to an Employee
After creating a loan template, you can assign it to an employee using one of the following methods:
Navigate to Payroll / Pay runs. Select the pay run where the employee is located, then manage the pay run templates.
Navigate to Payroll / Employees. Select the employee and manage pay run templates.
Once the Manage pay run templates panel is visible:
Select recurring or once-off template:
The loan can be added as either a recurring or once-off template.
If added as once-off, only one period repayment will be deducted.
If added as recurring, the loan will remain on the employee’s pay run until the loan is fully repaid.
Select the Deductions tab and search for your loan template.
Select the loan template in the list:
Select override if you want to adjust the Payout / Balance or repayment values.
Set loan balance amount: Provide a new payout or balance adjustment when adding it to the employee.
Loan repayment amount: Provide a new repayment amount when adding it to the employee.
Click on Create override to confirm your changes.
Click on "Add" to confirm and add the loan template to the selected employee(s).
Bulk manage Loans for Employees
From the pay run screen, you can efficiently manage loan payouts, balance adjustments, and repayments for multiple employees at once using the bulk management feature.
To get started, navigate to Payroll > Pay Runs and select the desired pay run.
Select Employees: Choose all or specific employees within the selected pay run.
Click on Import Pay Run Templates
Select Import Loans to open the bulk management panel.
Select the Loan to Manage: In the panel, choose the specific loan you want to bulk manage.
Choose the Values to Manage
Pay Out: Add loan payouts for all selected employees and specify their repayment amounts. These payouts will be disbursed through the employee's pay runs and increase their nett pay.
Balance Adjustment: Adjust the opening balances for the loans of all selected employees and provide repayment amounts. This is useful if the loan funds have already been disbursed, or if the company has already covered the loan costs.
Repayment (Only): Adjust only the repayment values while leaving the balances and payouts unchanged.
Payout / Balance Adjustment
Depending on the option selected in step 5, enter the necessary value or leave it blank if no changes are required.
Repayment value and Opening Balance
Review the current opening balance for each loan and adjust the repayment amounts as needed. Leave fields empty to keep values unchanged.
Bulk Actions
Copy & Paste: Copy values from one employee and use the paste option to apply them to other selected employees.
Remove: Remove specific employees from the bulk management list.
Manage Templates
Download & Upload Template: Download an Excel file to bulk edit or import values. Only employees in the current pay run will be included in the list. Any employees not found will be flagged as errors.
Set Uniform Amount: Use this quick action to apply the same amount to all employees in the list.
Select Once-off or Recurring: Choose whether the changes should be applied as a once-off or set as a recurring template for all selected employees.
View Loan balances
Loan balances can be accessed and managed in three different locations:
Employee Pay Run View
Pay Run Cost Report
Payroll Loans & Savings Report
Below are detailed instructions for each option:
Loan Balance (View and Edit): Employee Pay Run
You can view opening and closing balances for individual employees and make adjustments as needed.
Navigate to the employee’s pay run view and select the Payroll tab.
Select the Deductions tab to view all the employee’s deductions.
All separate loans for the employee will be listed under their deductions.
Balances: Loan balances are indicated as negative values, they represent how much money the employee still owes.
Opening Balance: This represents the balance when the pay run template was added, excluding any movement in the current pay run. If the loan template was added during the current pay run, the opening balance will always show as R0.
Closing Balance: This is the balance after all transactions (payouts, adjustments, and repayments) are accounted for in the current pay run. Note that if a loan payout is made, no repayment will occur in the same period to ensure the employee receives the full loan amount. In the event of a payout, the repayments will begin in the next pay period.
Repayment Amount:
The amount deducted from the employee's salary each period for loan repayment.
If a loan payout is made, it will appear as a negative deduction (e.g., -R100 will display as (R100)). Payouts increase the employee’s net pay without being classified as an earning.
Click the Edit button next to the loan template to access the override screen. Here, you can adjust the payout, balance, or repayment values.
Remove Template:
Click Remove next to the template.
If the loan is not fully repaid, the template can still be removed; however, the remaining balance will still be associated with the employee. You will receive a Health Notification in the pay run, indicating an employee with an outstanding loan balance and no repayment.
Pay Run Cost Report
Payroll Loans & Savings History Report
Loan Balance on the Payslip
Loan balances are shown on the payslip following the pay out of a loan to an employee. The payslip will typically display the initial loan payout, any loan deductions made, and the remaining loan balance. Please see the image below as an example of a Directly paid loan payout, a loan deduction and the loan balance:
Please be aware that the earnings and deductions added to an employee’s payslip are based on system templates and as such, cannot be directly edited or removed from the payslip itself. Any changes or adjustments must be conducted through the Loans & Savings module.
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