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. Good payroll systems track the balance, schedule repayments and stop deductions automatically when the loan is cleared.
Related terms
See it applied to real payroll
Vintage People handles every statutory rule for you — accurate, compliant and audit-ready.