This wiki page explains the Student loan deduction in payroll for the subtype CSL for infotype 0070.
The Infotype 0070 used with a court order subtype stores any orders made against an employee that are paid through the Payroll.
Court Order record is created after getting notification from the Court or Local authority with the appropriate court order subtype. All Information used by the Payroll to process court order deductions is stored in this Infotype.
Start Identification/Stop Identification
- Notif.source: The notification source should be specified for the start of student and also for delimiting the student loan. For delimiting the student loan we give stop notice as notif.source.
- Issued/received: The issue date or receive date of the CSL deduction notification
- Process ID: The Process ID field is used to track changes made to an employee’s CSL infotype record with records of all CSL changes received from the Inland Revenue during e-Filing Incoming processing.
Calculation LogicThe student Loan deduction for a particular period happens only if the employees NI able pay is above the threshold amount which is currently 15.795,00 GBP.
Here 15.795,00 GBP is an annual amount, this is prorated to a monthly or a weekly figure based on the employees pay frequency.
Student Loan deduction = 9%(currently) of the amount exceeding this threshold.
The value of the threshold which is currently 15.795,00 GBP is maintained in the view V_T511P-CSLRT.
The % value to be deducted(9%) is maintained in the view V_T511K-CSLRT.
- For student Loans the base wage type is /131
- /CSL = Student Loan Deduction
- /CSD = Student Loan arrears deducted in the period
- /CSM = Remaining arrears that is yet to be deducted
- /5CA = Holds the arrears value of a student loan in case of retro
Priority of Student Loans
A student Loan will not be processed until the following subtypes are available for deductions and until it has been repaid.
SEA, SCEA, SCMA, SCA1, SCA2, SCA3, SCA4, EWC, EWT, ISDN
EWF court order should not stop student loan deduction
Student loan calculations in payroll
Employee earnings per month = 3000 GBP
Minus pay period threshold = 15795/12 = 1316.25 GBP
Amount deductible for student loan = 1683.75 GBP
Multiply £ 1683.75 * 0.09 = 151.00 GBP
Student Loan deduction /CSL = 151.00 GBP
Employee has arrears generated when retro to previous payroll period
Arrears as generated in previous period
/5CA CSL Arrears 151,00 GBP
Student loan arrears deducted in current period
/CSD CSL Arrears 151,00 GBP
Student loan deduction for the current period
/CSL CSL Student 302,00 GBP (151,00 GBP for current period + 151,00 GBP for arrears of previous period)