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Benefits

Loan

Credit extended to an employee, repaid via payroll deductions.

An employee loan is credit granted by the employer (or a partner) and repaid through scheduled deductions from net pay. A good payroll system tracks the balance, schedules repayments and stops deductions automatically once the loan is cleared.

Related terms

Help & how-to

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See it applied to real payroll

Vintage People handles every statutory rule for you: accurate, compliant and audit-ready.