How to enable student loan deductions in FreeAgent's payroll
This article explains how to add a student loan plan to a new or existing payroll profile for an employee in FreeAgent. It also explains how FreeAgent handles student loan deductions.
Please note that you will need full (level 8) access to FreeAgent in order to either create a payroll profile for a new employee or edit an existing payroll profile.
FreeAgent supports all the undergraduate student loan repayment plans as well as postgraduate student loan repayments. However, if an employee has two or more undergraduate student loans covered by different repayment plans, you will not be able to use FreeAgent’s payroll to calculate the deductions. In this situation, you will need to file payroll outside of FreeAgent and post journal entries to record the payroll in your FreeAgent account.
Before you start
Before you can add a student loan plan to a new or existing payroll profile for an employee, you will need to add the employee as a user to your FreeAgent account.
Enabling student loan deductions for a new payroll profile
To enable student loan deductions as part of the process of creating a new payroll profile, navigate to the ‘My Money’ tab at the top of the screen and select ‘Payroll’ from the drop-down menu.
Select ‘Add an Employee’ from the right-hand side of the ‘Employees’ section and select the employee’s name from the drop-down menu.
Scroll down to the ‘Deduct student loans?’ options in the ‘Tax & NI’ section and tick the check box for the relevant type of student loan.
If you tick the ‘Undergraduate loan’ option, you'll be prompted to select which type of repayment plan applies to the loan.
FreeAgent is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (register no. 799763) for the provision of account information services.
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