Any employee, who has spent a good amount of time for a company with utmost dedication, is liable to receive bonus and benefits from the company. Also during circumstances when the employee is in need of money, the company may sanction him loan depending upon the severity.
However, a loan given by the company to the employee sums up as a burden for the HR, as it adds another element to be considered while processing payroll and any mistake in it may not end up good for the HR. This calls for precise loan management. Thus, at such times use of a payroll app can come in handy, as it can easily help manage loans.
Pocket HRMS, a cloud based payroll software, provides with an easy to use Loan Management module, wherein the HR ought to enter all the details of loan and leave the rest on the software, as it easily processes payroll accordingly considering all the bonus and deductions including Loan’s EMI.
With Pocket HRMS loan management, HRs can make:
Loan Entry: A one-time entry, including name of the employee, loan amount with the EMIs and Interest, if any, to be paid and the period among the others is all an HR needs to provide. With this done, payroll software automatically starts deducting the loan from the employee’s monthly salary as per the instructions provided.
Loan deviation: For some reasons, the employee can’t pay his EMI for the month or be able to pay a lesser amount, the software gives the ability to deviate the amount of loan for the month, while allowing the HR to add compensatory options.
Loan foreclosure: If in any case, the employee can no longer pay the loan through his salary, for instance job resignation or advanced payment, also in case of incorrect entry, the app allows the HR to foreclose the account, after which the loan deduction will be removed from the employee’s profile.
Furthermore, the employee can also know his loan status and Information like balance amount, period left, etc. through Pocket HRMS’s Employee self-service portal.
Thus, Pocket HRMS provides loaning options to your employee without overloading your HR.