How does pausing and resuming a loan work in Workpay?
Managing employee loans is an integral part of payroll processing in Workpay. This article explains how pausing and resuming loans affects payroll deductions and provides guidance on using this feature.
What Happens When You Pause a Loan
Pausing a loan prevents the system from deducting loan repayments during payroll processing. While a loan is in the "Paused" status:
No deductions will be made from the employee's salary.
The loan's status is effectively on hold, keeping all repayment schedules intact but delaying deductions until the status is changed.
Resuming Loan Deductions
When you want deductions to restart, you must manually change the loan status from "Paused." Repayments will then resume and coincide with your next payroll processing cycle. This ensures a seamless transition back to the repayment schedule.
Use Cases and Flexibility
You can utilize the loan pausing feature in scenarios where you need to temporarily halt deductions, such as accommodating an employee's financial situation or aligning repayment schedules with their preferences. This feature provides flexibility in managing payroll deductions without permanently altering the loan's terms.
Key Points to Remember
Pausing a loan halts payroll deductions but does not delete or modify the loan details.
Always manually update the loan status when you want deductions to resume.
Deductions will automatically restart with the next payroll once the loan is unpaused.
Related Topics
Managing Employee Loans in Workpay
Adjusting Payroll Schedules
Employee Benefits Deduction Management