The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
If you need help, more information about student loan deductions see Student loans: information for employers and employees (CSL2) .
You can minimise the impact on your time when dealing with employees who have student loans by:
Regularly checking your inbox for online notices Implementing SL1 and SL2 notices at the first available payday Checking carefully that you are making deductions against the correct plan type (you’ll find the plan type information on form SL1, the starter checklist or by asking your employee) Asking your employee to contact Student Loan Company if they don’t know their plan type.
Full details on introduction of plan type can be found in February’s Employer Bulletin
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Student Loan employer prompts being sent to pension providers 4 May 2016
Some of our members who are pension providers have highlighted a glitch where they are receiving Student Loan employer prompts from HMRC where no deduction is necessary.
We alerted HMRC to the issue of unnecessary prompts and they are already aware of the problem. It is being investigated at present and in the meantime the guidance on the Helpline has been updated to reflect this.
HMRC acknowledged that GNS messages for Student Loans may be issued to pension providers who do not need to deduct Student Loans. If National Insurance contributions are not due, Student Loan deductions will not be due. In these cases the prompt can be ignored as deductions are not required. Student Loan employer prompts From 6 April 2016 HMRC will send a generic notification if you don’t report any student loan deductions for a specific employee when a deduction is expected in your payroll submission. The generic notification is a prompt for you to check and make the correct deductions for future pay periods.
See our previous news item for further details.
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Would showing different student loan deduction types on the payslip be an admin burden? 25 May 2016
A recent CIPP poll showed that just over a third of respondents would find showing different student loan deduction types on the payslip an admin burden, however over half said it would not.
At the last Collection of Student Loans (CSL) Consultation Group meeting there was a discussion about the possibility of showing both undergraduate and postgraduate loans on payslips.
Item 3 within the meeting minutes refers to Postgraduate loans and HMRC asked the representatives in the group what would show on payslips. Would the different loans be identified (undergraduate or postgraduate) or would it be a combined figure? The consensus was that showing the loans separately on payslips would be a good idea.
In light of this we asked payroll professionals through our CIPP Poll if showing this information separately would be an administrative burden.
We received a total of 288 responses, 34% (97) of which said it would be an admin burden, 57% (165) said it would not and the remaining 9% (26) were unsure.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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