A Gap Loan is a loan option given to companies using Salarium which allows them to set a Minimum Net Take Home pay for their employees. When the calculated Net Take Home Pay of an employee is less than the set amount, the company will automatically provide the supplemental amount needed to reach the Minimum Net Take Home Pay. This amount will then be considered as a loan.
The Minimum Take Home Pay for the payroll group where the employee is included is Php 5000. Upon generating regular payroll, the computed employee’s actual Take Home Pay is Php 3800. The employee is Php 1200 short considering the Minimum Take Home Pay set. Allowing the system to do a Gap Loan transaction lends the exact lacking amount. The amount and monthly loan payment can further be adjusted.
When the system detects that an employee’s salary is lower than the *Minimum Net Take Home Pay, a dialog box will appear asking if you want to make a Gap loan transaction. This only appears if the Gap Loan has been activated upon creating the payroll group.
To execute a gap loan transaction during regular payroll generation:
1. From the Top Navigation, go to Payroll.
2. Click on the Generate Regular Payroll button. Select the Payroll group and period.
3. Click on the Generate Payroll button > Import.
4. Under Time and Attendance section:
Upon ticking on this switch, payroll fetches the most recent data from Time and Attendance
System runs a validation if the Payroll Period selected has existing computed attendance for each date.
iii. In case of T&A errors, do the following steps:
Open Time and Attendance in a new tab.
Using the Filter, select the attendance period you need for payroll, then Regenerate Attendance.
Return to Payroll, clear data and tick on Get Attendance again. The system should validate attendance.
5. You can also add Allowances, Bonuses, Commissions and Deductions as a form of payroll adjustment by uploading the corresponding template
6. Once done, click on the Finish Import button.
Salarium computes your payroll.
When the net take home pay of an employee falls below the set minimum take home pay, you are given the option to avail of the Gap Loan. This only appears if the Gap Loan has been activated upon creating the payroll group.
7. On the dialog box, click on the Go To Gap Loan Transactions
8. Select the employee from the Employee list on the left panel
9. Supply the necessary information:
Note: Total amount payable to be defined may be higher than the calculated amount given. Repayment start date may be set on a much later date.
10. Once done, click the Generate Payment Schedule button.
11. Click the Finish and Go To The Next button to continue with the rest of the employees.
12. Once all employees are done, click on Finish and Re-calculate Payroll.
13. A dialog box will appear, click on the Confirm button to proceed.