loan to employee

O

oaky9

Registered User
Messages
88
im a director of a ltd company and one of our employees wants an advance on his wages of 6k and he will pay it back before the end of the year, i am willing to allow this but is this allowed and is there a bik issue
 
there is a bik issue. This is a preferential loan. BIK is calculated at 13% of the loan per annum
 
Does he want €6k cash?

If so, the best way is to pay him around €10k gross salary in advance.

That is much cleaner than having bik to report and bad debts if he does not pay it off.

It could be repaid by reducing his gross salary by €1k a month.

Brendan
 
That will reduce the risk, if he sticks around!!! Also you will incur 10.75% Employers prsi
 
We got a loan due to a delay when we switched from a monthy pay cycle to a 2 weekly one. We got 2 weeks gross pay and had to agree to pay back same in instalments or out last payslip, this coudl mean you woudl have very little in your last payslip. I heard that they did look into advancing a net amount but revenue say 'no way'. €6k is a lot though and if he leaves would the last month pay cover it?
 
You must log in or register to reply here.
Back
Top