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Staff loans, bonus runs and final pay

Staff Loans, Off-Cycle Pay & Final Settlement

Answer Summary

Staff loans take a principal, optional flat interest and an instalment plan; each regular payroll run deducts the instalment (never more than the balance or the net pay left) and the payout, interest and repayments post to the ledger. Off-cycle runs pay bonuses, arrears, commission and corrections beside the regular run, taxed on the month as a whole. A final settlement proposes a leaver’s pro-rated salary, leave encashment and notice pay, adds gratuity or severance, and recovers open loans and advances. HR decides what is taxable; AWRA prepares the statutory files and you submit them.

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