Loan

General support regarding TimeTrex, such as
configuring policies/taxes or processing payroll.
jolmstead
Posts: 22
Joined: Fri May 31, 2013 2:29 pm

Loan

Post by jolmstead »

I have a 401k Loan setup that doesn't seem to stop when the target is reached. Can anyone see what I have done wrong with this setup? Below are the steps used to create...

1. Setup a Pay Stub Account as an Accrual
2. Setup a Pay Stub Account as an Employee Deduction pointing to the Accrual Pay Stub Account with an Accrual Type of "Earning Adds, Deduction Subtracts"
3. Setup a Tax/Deduction as a Deduction with a Calculation Type of Fixed Amount (w/Target) pointing to the Pay Stub Account marked as an employee deduction
4. Under this Tax/Deduction I then entered each employee with an amount to be taken each pay period and a limit
5. On the first pay period I did a Pay Stub Amendment for the Pay Stub Account marked as an accrual with type Fixed for the amount of the loan

After this everything works exactly as expected, until the limit is hit. It just keeps on taking the amount specified in the Employee Settings. It even shows on the check stub that the YTD Amount is more than the Target Balance/Limit as well as showing the Accrual then going negative. How do I stop it from deducting once the limit is hit?

Attached is a capture of the check stub. The Limit set on the loan for this particular individual is $3,609.78 with an amount of $300.84 to be taken each pay period. In this case it went $0.30 over.

Thanks,
Jeremy
Attachments
Capture.PNG
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Loan

Post by shaunw »

What Target amount did you specify?
jolmstead
Posts: 22
Joined: Fri May 31, 2013 2:29 pm

Re: Loan

Post by jolmstead »

The target amount specified was $3,609.78.
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Loan

Post by shaunw »

It appears that you have your Loan Accrual setup to go in reverse though, from $3,609.78 to $0.00, therefore the target should be the end result that you want, or $0.00.
jolmstead
Posts: 22
Joined: Fri May 31, 2013 2:29 pm

Re: Loan

Post by jolmstead »

Okay, that makes sense, but when I tried this, then it took nothing out.
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Loan

Post by shaunw »

Please post another copy of the Pay Stub and a screenshot of your Tax/Deduction settings.
jolmstead
Posts: 22
Joined: Fri May 31, 2013 2:29 pm

Re: Loan

Post by jolmstead »

Attached are...
Capture.PNG = Actual Pay Stub
tax_deduction1.PNG = The Tax/Deduction general setup
tax_deduction2.PNG = The Tax/Deduction employee settings with the item in question highlighted (though none of the work)
pay_stub_account1.PNG = The deduction portion of the pay stub account setup
pay_stub_account2.PNG = The accrual portion of the pay stub account setup
Attachments
pay_stub_account2.PNG
pay_stub_account2.PNG (10.28 KiB) Viewed 15675 times
pay_stub_account1.PNG
tax_deduction2.PNG
tax_deduction2.PNG (8.25 KiB) Viewed 15675 times
tax_deduction1.PNG
Capture.PNG
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Loan

Post by shaunw »

In your Tax/Deduction record, set the "401K Loan-1 (Accrual)" as the Include Pay Stub Account, thats what TimeTrex uses to determine "target" amount.
jolmstead
Posts: 22
Joined: Fri May 31, 2013 2:29 pm

Re: Loan

Post by jolmstead »

That seemed to do the trick...thank you.
jolmstead
Posts: 22
Joined: Fri May 31, 2013 2:29 pm

Re: Loan

Post by jolmstead »

One more issue with this. The loan is now completely paid for and the employee was removed from the Employee Settings tab on the 401k Loan deduction, but it continues to show up on the check stub (example attached). Is there anyway to get it off the check stub?
Attachments
accural.PNG
accural.PNG (6.81 KiB) Viewed 15612 times
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Loan

Post by shaunw »

My first guess would be that you have something causing a $0.00 amount to be calculated on the pay stub, such as another Tax/Deduction record, or a Pay Stub Amendment.
jolmstead
Posts: 22
Joined: Fri May 31, 2013 2:29 pm

Re: Loan

Post by jolmstead »

I don't think that is the case...I did a search for all amendments for the current period and there were none and I checked every Tax/Deduction and no other item points to the 401k Loan pay stub account. Are there any other possibilities?
gregory
Posts: 102
Joined: Fri Oct 28, 2011 3:39 pm

Re: Loan

Post by gregory »

This seems to be the recommended post for setting up loans. We are using 11.0.2 and want our loans to behave as indicated in the post where the accrual account shows the remaining balance to be paid and the tax/deduction has a target amount of $0.

We can get it to work the other way where the accrual account shows the amount repaid and the target is the amount of the loan. We cannot get the pay stub account screen to show the type field as shown above when accrual is chosen to select earning adds and deduction subtracts. Is there a different way with the current version.

Thanks,

Gregory
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Loan

Post by shaunw »

gregory wrote: Mon Dec 18, 2017 4:25 pm This seems to be the recommended post for setting up loans. We are using 11.0.2 and want our loans to behave as indicated in the post where the accrual account shows the remaining balance to be paid and the tax/deduction has a target amount of $0.

We can get it to work the other way where the accrual account shows the amount repaid and the target is the amount of the loan. We cannot get the pay stub account screen to show the type field as shown above when accrual is chosen to select earning adds and deduction subtracts. Is there a different way with the current version.
This is a display problem in v11.0.2, it will be fixed in the next version of TimeTrex, due out this week sometime.
gregory
Posts: 102
Joined: Fri Oct 28, 2011 3:39 pm

Re: Loan

Post by gregory »

OK. Unrelated, but please note in company Information use second surname checkbox is never saved as checked.
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Loan

Post by shaunw »

gregory wrote: Mon Dec 18, 2017 5:19 pm OK. Unrelated, but please note in company Information use second surname checkbox is never saved as checked.
I will pass that on to be investigated further.
gregory
Posts: 102
Joined: Fri Oct 28, 2011 3:39 pm

Re: Loan

Post by gregory »

Second surname checkbox disappeared from company info screen.
gregory
Posts: 102
Joined: Fri Oct 28, 2011 3:39 pm

Re: Loan

Post by gregory »

Happy New Year 2018. Back to the original loan question. Ver 11.1.1 Set up accrual account called loanBalance. Set up Pay stub account Loan as earning and accrual account LoanBalance with type earning adds, deduction subtracts. Set up Tax/Deduction for Fixed Amount with Target ($0). The Tax/Deduction is working OK and see balance in accrual. Paying the employee the loan with an Out of Cycle paystub and the paystub does not show accrual balance nor add the positive amount to the accrual.

What am I missing?

Thanks
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Loan

Post by shaunw »

If the loan earning on the pay stub isn't affecting the accrual, then you don't have the Earning - Loan Pay Stub Account setup correctly to link to the Loan pay stub accrual account.

Also, the accrual type should be Earning Subtracts, Deduction Adds, since when you pay the employee the loan on the pay stub, the balance should go into the negative (amount owing by employee), not into the positive (amount owing by employer).

FYI: The loan repayment is all setup automatically by default, which you can see the settings on our public self-serve demo too.
gregory
Posts: 102
Joined: Fri Oct 28, 2011 3:39 pm

Re: Loan

Post by gregory »

OK. Looked at public demo (which is still on 10.7) and checked setup as much as I could because some stuff was pointed to, but not visible. For example under pay stub accounts there was no loan repayment account, though it is selected in the Loan Repayment tax/deduction. Same as Accrual account loan balance selected in same Loan Repayment tax/deduction.

Anyway as far as I can tell setup is same, but not working see screen shots attached for Pay stub accounts for earning, deduction and accrual. See out of cycle pay stub and normal pay stub. Net pay and all is perfect. Only issue is accrual is not shown in out of cycle pay stub and is wrong value in normal pay stub. Balance should be $0 ($13,500 paid on Dec 15 and $13,500 deducted on Dec 31).
pay stub account accrual
pay stub account accrual
TT loan accrual pay stub account.jpg (23.78 KiB) Viewed 12995 times
pay stub account earning
pay stub account earning
TT loan payment earning pay stub account.jpg (39.02 KiB) Viewed 12995 times
pay stub account deduction
pay stub account deduction
TT loan repayment deduction pay stub account.jpg (43.64 KiB) Viewed 12995 times
out of cycle pay stub loan payment
out of cycle pay stub loan payment
TT emp1 out of cycle loan payment.jpg (49.31 KiB) Viewed 12995 times
normal pay stub loan repayment in full
normal pay stub loan repayment in full
TT emp1 normal loan repayment.jpg (82.67 KiB) Viewed 12995 times
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Loan

Post by shaunw »

Unfortunately I'm not able to replicate what you are seeing at all. Out-of-Cycle pay stubs with loan amounts show the balances for me.
You can use https://demo.timetrex.com to login to the latest version if you like. Username: demoadmin1 Password: demo
gregory
Posts: 102
Joined: Fri Oct 28, 2011 3:39 pm

Re: Loan

Post by gregory »

Went to site you indicated for current version demo and confirmed was 11.1.1. Deleted normal Jan 19 pay stub for Tristen Braun so that that employee would have NO pay stubs in that pay period.

Created out of cycle pay period with 13,500 loan earning ONLY. You can see pay stub in demo is out-of-cycle for Tristen dated 5 January or here:
TTdemo Tristen Braun out of cycle loan payment.jpg
TTdemo Tristen Braun out of cycle loan payment.jpg (97.66 KiB) Viewed 12988 times
Notice NO accrual shown. I did not change any of the pay stub accounts only used what was already created.

Does this replication of issue on your demo system help?

Thanks
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Loan

Post by shaunw »

Are you manually creating the entire pay stub under Payroll -> Pay Stubs, then clicking the "New" icon?

If so, currently that doesn't do any automated calculations for you whatsoever (ie: it won't calculate tax/deductions or accruals), so you wouldn't see any accrual account adjustments unless you did it manually as well. We normally don't recommend manually creating or editing pay stubs unless absolutely necessary, due to this and several other potential issues that can arise.

If you want the accruals to be handled automatically, you will need to use Pay Stub Amendments, then have TimeTrex generate the pay stubs for the employees itself.
gregory
Posts: 102
Joined: Fri Oct 28, 2011 3:39 pm

Re: Loan

Post by gregory »

That did it. After many hours with TT it was not obvious that creating a new PayStub was different from generating a new PayStub. You guys do a good job with pop-up warnings, there should be an intermediate acknowledgement screen after clicking on New PayStub warning no calculations are done.

As every month we pay a fixed amount on the 15th which is then deducted on the normal PayStub at end of month I see 3 ways of creating the out of cycle pay stubs (see below). Are there others?
1 - Use pay stub amendments and generate out of cycle paystubs
2 - Manually create new Paystubs including earning, accrual and payment info
3 - Create tax/Deduction that only applies to out-of-cycle paystubs

If 1 and/or 2 can be created once and just copied from one month to another with new date that would be easy. I see how to do Copy and New 1 at a time, but not mass. 3 is easiest most months except for those when we have another out-of-cycle need that will not be paid simultaneously with the advance on the 15th, in which case we would have to disable tax/deduction, generate out-of-cycle paystub and then enable again.

Thanks for help.
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Loan

Post by shaunw »

As every month we pay a fixed amount on the 15th which is then deducted on the normal PayStub at end of month I see 3 ways of creating the out of cycle pay stubs (see below). Are there others?
1 - Use pay stub amendments and generate out of cycle paystubs
2 - Manually create new Paystubs including earning, accrual and payment info
3 - Create tax/Deduction that only applies to out-of-cycle paystubs
TimeTrex does not have any fully automated way to handle Pay Period Schedules with regular advances anymore, it used too about a decade ago but was used by so few people and added a large amount of complexity, it was eventually decided to be removed. It does of course handle advances in a manual way though.

Another option would be to create a Excel/CSV file that contains the advance amounts for each employee that you just import each month as Pay Stub Amendments. You could then create a Tax/Deduction that automatically deducts 100% of the advance amount on their regular pay stub so at least that part doesn't have to be manual.

If at all possible you may want to consider moving to a semi-monthly Pay Period Schedule to avoid advances and the many problems that come with them. Even though the idea for advances is to be "fixed" amounts, in practice there always seems to be some adjustments, since if an employee was away for a large portion of the first part of the month, the advances would always need to be adjusted so the employee doesn't get overpaid. As soon as you start making those adjustments, you are essentially now a semi-monthly pay period schedule doing a lot of manual work you wouldn't otherwise need to do.
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