My employee repaid their loan outside of payroll. How do I record this so that I can remove the Employer Loan?

You can still record the repayment via the SimplePay Employer Loan item to show that the loan has been repaid outside of payroll, and then remove the Employer Loan from the payslip. Please see the steps below.

  1. Go to Employees > Select the employee > Employer Loan (under Payslip Inputs).
  2. Enter a negative value in the Balance Increase field to account for the repayment. For example, if there was €500 left on the loan and the employee paid it in cash, you would enter -500 in the Balance Increase field.
  3. Tick the Don’t pay out balance increase box, as well as the Balance increase is at beginning of period box (which will appear after the first box is ticked). This tells the system that the negative balance increase should not affect payroll (Nett Pay), and that no further Loan Repayment should be deducted – because the balance changed to zero at the start of the payslip period.
  4. Click Save.
  5. Finalise the payslip. The Employer Loan will now have a zero balance and can be removed from the next regular payslip, by going to Regular Inputs.

Please note: You are indicating to the system that this repayment happened outside of payroll; as a result, it will not be reflected in SimplePay’s Accounting Info (report) as it has no impact on Nett Pay. Therefore, even if you have set up accounting integration with Xero or QuickBooks Online, you would need to manually account for the repayment in your accounting system.