Student Loan-AU
Hello,
How can I set up an automatic deduction for a student loan? Are there also requirements needed from the employee to pass on their employer?
Thank you in advance
Kind Regards,
Tiu
Hi Tiu
Thanks for your post. If it's an Australian government study or training loan repayments are included in the employee's PAYG Withholding obligations. This means that you need to select the applicable tax table in the employee card. The software will calculate the amount to withhold based on that tax table.
The employee notifies the employer which tax table to use by ticking the applicable table on their Tax File Declaration. The employer selects the same tax table in the employee card>>Payroll Details>>Taxes>>Tax Table.
These links to the ATO website have more information on student loans:
Please let me know if you need further help.
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
