Ask AwraIQ about features, pricing, onboarding, login, integrations, security, demos, mobile apps, automation, reports, or support.
Staff loans, bonus runs and a leaver’s final pay — inside payroll.
The monthly run is the easy part. The spreadsheet beside it is where loans, one-off bonuses and final dues go wrong. AWRA keeps all three in payroll: a loan deducted by instalment until it is cleared, an off-cycle run taxed with the rest of the month, and a final settlement built from the leave balance and the loans the leaver still owes.
Staff loans
Lend once. Payroll collects until it is cleared.
A loan is the employee’s own money, owed back in instalments — not a staff advance, which is spent for the organization and retired against receipts. AWRA keeps the two apart, and never stores a loan balance: it is the amount repayable less the repayment ledger, so the two cannot drift.
Issue
Principal, an optional flat interest rate charged once on the principal, and either an instalment amount or a number of instalments. Set the issue date and the month of the first deduction.
Deducted by payroll
Each regular run deducts the instalment from the first-deduction month — never more than the balance, and never more than the net pay left, so a short month stretches the schedule rather than producing a negative payslip.
A schedule and a ledger
The loan page shows the schedule by payroll month and a repayment ledger linking each deduction to its run. A repayment is recorded when the run is posted, so a recalculated draft can never count twice.
Pause, repay, write off
Pause a loan and payroll skips it until it is resumed. Record a cash or transfer repayment. Write off the balance with a reason that is kept on the loan.
The employee sees it
A My Loans card on My Payslips, on the web and in the mobile app, shows each loan’s status, instalment, amount repaid and balance. They are told when a loan is issued and when it is cleared.
Recovered at exit
When someone leaves, their final settlement lists every open loan with its balance, and HR ticks which to recover from the final pay.
What reaches the ledger
| Event | Debit | Credit |
|---|---|---|
| Loan issued | Staff Loans (the total repayable) | Bank (the principal paid out) and Staff Loan Interest (the interest) |
| Instalment through payroll | Payroll Expenses | Staff Loans — the withheld pay settles the receivable instead of reaching the bank |
| Repaid in cash or by transfer | Bank | Staff Loans |
| Written off | Expenses | Staff Loans |
A loan paid out before it was recorded in AWRA can skip the payout posting; its repayments still reduce the receivable.
Off-cycle runs
Pay the extra without reopening the month.
A bonus, a missed payment, a commission or a correction goes in a run of its own beside the regular run, for just the people it concerns. It follows the same calculate, approve and post steps, and posting puts each net payment in the Payments Register.
- A reason for the run: bonus, correction, missed pay, commission or other.
- Lines to pay or to recover — bonus, commission, arrears, a one-off allowance, a correction — each marked taxable and pensionable as it applies.
- Amounts can be changed while the run is a draft or calculated; an unapproved run can be discarded.
Tax across several runs
Taxed on the month, not on the payslip.
Each payslip is taxed on the employee’s combined approved and paid pay for the month, less what that month’s other payslips already deducted. Bands, reliefs and contribution caps therefore apply once a month however many runs someone appears in — which is why a bonus payslip often carries more tax than the bonus would on its own. A later run never refunds tax.
The Kenya filing files and the P9 merge each employee’s payslips for the month into one row. AWRA prepares those files; you upload them to each authority’s portal and make the payments yourself.
Final settlement
A leaver’s final pay, proposed from what AWRA already knows.
Start from the employee’s profile or the payroll runs page, confirm the last working day, and AWRA proposes each figure. HR can change any of them before the run is calculated, and the run then goes through the same statutory engine and approval as any other.
| Item | What is proposed |
|---|---|
| Salary to the last day | Working days from the start of the month to the last working day, on your own working calendar, at the daily rate (basic ÷ standard working days). Nothing is proposed if a regular run already paid the month. |
| Unused leave | Each paid leave type with its remaining balance for the leaving year, from the live leave records. Tick the types to encash and set the days. |
| Notice pay in lieu | A number of days at the daily rate, or an amount typed instead. |
| Gratuity, severance, other | Amounts HR enters. |
| Recoveries | Every open staff loan and issued staff advance, with its balance. HR ticks which to recover; recoveries never take the final pay below zero. |
HR decides what is taxable
Every earning starts taxable, and HR switches off any item their jurisdiction exempts. Relief on severance or gratuity is never applied on its own — check the treatment with your payroll adviser.
Advances retired properly
A recovered staff advance is retired as cash returned when the run is posted, and goes through finance approval where your organization approves retirements.
Started from the profile
The employee’s Loans & Final Pay card lists their loans and opens the settlement for them, with the last working day filled in from their end date.
What AWRA OpsHub does today
- Staff loans with optional flat interest, an instalment amount or count, and a schedule by payroll month.
- Instalments deducted by regular payroll runs, capped at the balance and at the net pay left, and recorded on the loan when the run is posted.
- Ledger postings for the payout, interest, every repayment and any write-off.
- Pause, manual repayment and write-off with a reason, each kept on the loan.
- Off-cycle runs for bonuses, corrections, missed pay and commission beside the regular run, taxed on the month’s combined pay.
- Final settlement runs proposing pro-rated salary, leave encashment and notice pay, with gratuity, severance and recoveries of open loans and advances.
- A My Loans card on My Payslips, on the web and in the mobile app.
More we can add to your workspace
- Loan requests raised by employees, with an approval step before HR issues the loan.
- Reducing-balance interest, beside the flat rate charged once on the principal.
- A loan limit per employee, checked against salary when a loan is issued.
- Loan balances on the no-login payslip portal, beside the payslips staff already open there.
- Instalments on off-cycle runs, so a bonus can clear part of a loan.
- Country rules for severance and gratuity relief, applied automatically where your jurisdiction grants them.
Where we point you to a specialist
- We do not decide whether a severance or gratuity payment is taxable where you operate. Every earning starts taxable and HR sets the treatment, with their payroll adviser.
- AWRA prepares the statutory files; submitting them and paying the authorities stays with you, through each authority’s own portal.
Every row in the middle column extends a payroll engine that already deducts, recovers and posts. Tell us how your organization lends to staff and pays people out.
Loans & Final Settlement
Frequently asked questions
Can AWRA deduct staff loan repayments from salary?
Yes. Issue the loan with an instalment amount or a number of instalments and the month of the first deduction, and each regular payroll run deducts the instalment until the balance is cleared. A deduction never exceeds the balance or the net pay left, so a short month stretches the schedule rather than producing a negative payslip.
Can a staff loan carry interest?
Yes, a flat rate charged once on the principal and added to what is repaid, booked to a Staff Loan Interest account. Leave it at zero for an interest-free loan. Reducing-balance interest is something we can add to your workspace.
How do I pay a bonus without reopening the monthly payroll?
Create an off-cycle run with the reason Bonus, add the amount for each person, then calculate, approve and post it like any run. It is taxed on the employee’s combined pay for the month, so bands and reliefs apply once however many runs they appear in.
What does a final settlement include?
AWRA proposes salary to the last working day on your working calendar, encashment of unused paid leave from the live balance, and notice pay in lieu. HR adds gratuity, severance or other amounts, ticks which open loans and staff advances to recover, and can change any figure before the run is calculated.
Who decides whether severance or gratuity is taxable?
HR. Every earning on a settlement starts as taxable and can be switched off where your jurisdiction exempts it. AWRA does not apply country-specific relief automatically, so check the treatment with your payroll adviser.
Does AWRA file the statutory returns for these runs?
AWRA prepares the files. For Kenya, the filing files and the P9 merge each employee’s payslips for the month into one row; you upload them to each authority’s portal and make the payments yourself.
Can employees see their loan balance?
Yes. Employees with a login see a My Loans card on My Payslips, on the web and in the mobile app, with each loan’s status, instalment, amount repaid and balance, and they are notified when a loan is issued and when it is cleared.
Help Center
Need a quick answer while you read?
Run inventory, procurement, assets, sales, and field work with approved AWRA guidance for setup, migration, integrations, security, pricing, and support.