Postgraduate Loans

You can enable an employee's tax definitions in People so that the application automatically deducts statutory postgraduate loan (PGL) payments from their pay in the Payroll feature.

To enable PGL deductions for an employee:

Go to People, open the employee profile, and click Payroll > Tax Definitions.
In the UK Postgraduate Loan section, click Add,
In the Effective From field, enter the start date for the loan.
(Optional) In the Effective To field, enter the end date for the loan. The application calculates and applies the deduction until the end date is reached or the record is deleted.
In the Legal Entity field, select a legal entity.
Click Save.

General information about postgraduate loans
Item	Explanation
When is a PGL Payable?	PGLs are due for repayment through the PAYE process.
PGLs compared to student loans	Employees might be liable to repay a statutory student and postgraduate loan concurrently, because they are separate loan products. This means that, where applicable, Dayforce can deduct both student and postgraduate loans from the same employee.
Calculation	The amount that the application can deduct from each payment is subject to HMRC rates and thresholds that are built into Dayforce.
System deduction code	When you calculate payroll for the employee, Dayforce generates the deduction using the system Postgraduate Loan deduction code, which shows in the Deductions section of the employee payslip. In the Employee tab of Payroll > Pay Run Management > Preview, the Postgraduate Loan code shows under the Statutory Deductions heading. Student loan deductions take place separate from an employee's payroll elections. You do not need to add a deduction to the Payroll > Payroll Elections screen in People as you do with other types of deductions, such as, benefits, pension, fees.
PAYE Submissions	PGLs are calculated and sent in the employer’s regular payments to PAYE. In Payroll > Post Commit Management > Tax Month Management, in the slide-out panel for the selected legal entity, the Tax Month Reconciliation tab includes the Postgraduate Loan line below the FPS Summary heading.
Terminations	If an employee is no longer employed with the organization because they have died, and the date that they died is entered in the Date of Death field in the Employment > Employment Settings screen of People, Dayforce automatically suppresses the PGL deduction from the employee's final pay.