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Computer Loan Program
Benefits & Compensation
Computer Loan Program
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Has anyone designed and developed an employee computer loan program? What are the pitfall? What should the payroll authorization include?
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Forums » Topic Forums » Benefits & Compensation » Computer Loan Program
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Computer Loan Program
posted at 11/14/2000 2:54 AM EST
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Posts: 1
First: 11/14/2000 Last: 11/14/2000 |
We have had a computer loan program (it has been in place about 5 years).
We limit the amount that we will loan (with no interest) employees to one month's gross pay. There are tax considerations associated with this benefit. The cost to company is the financing over the term of the loan. The only "pitfall" that we have run into is that if an employee leaves, you have to collect the balance owing (we have them sign a promissory note so that we are able to collect). We have never had a problem collecting. Employees find this program to be beneficial (especially the technical staff). |
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Computer Loan Program
posted at 11/14/2000 3:43 AM EST
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Posts: 2
First: 11/14/2000 Last: 4/5/2001 |
Our computer loan program states that an associate may receive an interest free loan up to $2000.00 for one year, provided he has been with our company one year. We require an associate's manager and departmental officer to sign our Authorization form so that the process can begin. The associate then needs to sign Advance Paperwork, which includes a Promissory Note. Once the computer arrives, it is only released after I have given the okay. The payroll deduction begins in the next biweekly payroll. We did have one pitfall before we implemented the policy to have both the manager and departmental officer sign the Authorization form; an associate received authorization from the departmental officer to obtain a computer loan, and then the manager terminated his employment without knowing that he had received a computer loan. The associate has yet to pay us the money owed, and as a result, we are going to court next week. Good luck! |
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Computer Loan Program
posted at 11/14/2000 6:05 AM EST
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Posts: 1
First: 11/14/2000 Last: 11/14/2000 |
My company implemented a computer loan program a few months ago. We have the employee complete a loan request form, indicating what they plan on purchasing. Our loan program does not cover "extras", such as scanners, digital cameras, etc., unless it would needed to do their job from home.
The max they can borrow is $1,000, and they are eligible for the loan after three months. They have to sign a letter agreeing to pay back the loan within four payrolls (bi-weekly), and any remaining amount will be deducted from their last paycheck if they leave our employment earlier. Once we receive receipts, then it goes effective the next payroll. We've had several employees take advantage of this benefit and have been very pleased. |
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Computer Loan Program
posted at 11/14/2000 7:57 AM EST
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Posts: 1
First: 11/14/2000 Last: 11/14/2000 |
Hi - we do have a computer loan program. Hourly employees may participate after 6 months of employment; salaried employees are immediately eligible. We offer interest free loans to puchase computer hardware and software. The maximum loan amount is $2,400 and is repaid over a maximum of 18 calendar months through payroll deductions. We have employees sign a computer loan request which authorizes us to withhold the appropriate amount from their paycheck as well as, should they terminate before the loan is paid off, withhold as much as we can get from their last paycheck. Pitfalls? It's a great program and a very popular one with our employees. However, if someone leaves and we can't withhold the entire balance owed from their final check, we've had a heck of a time getting it back from them - mostly because the amounts are pretty small (relatively speaking) and it's not worth attorney's fees to go after them in a big way. This really hasn't been much of a problem and definitely doesn't outweigh the benefits of the program. |
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Computer Loan Program
posted at 11/14/2000 9:24 AM EST
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Posts: 2
First: 5/24/2000 Last: 11/14/2000 |
We are a community bank and have had our program for 3 years. You have to be full-time and employed for one year before eligible. The maximum loan amount is $2,500 interest free and can be paid over a max of 3 years (78 bi-weekly payments). The employee applies for a personal loan and actual loan papers are drawn up and kept on file. They also have to provide us with a receipt to ensure that the computer was purchased and the money is not used for something else. The employee also signs a payroll deduction authorization form. Should the employee leave, they would owe the balance back to us. We have had no pitfalls and have provided over 25 personal computers in the last 3 years. It is a great benefit for your employees! |
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Computer Loan Program
posted at 11/14/2000 12:47 PM EST
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Posts: 1
First: 11/14/2000 Last: 11/14/2000 |
I adminstered the computer loan benefit at a prior company. Our computer loan program was a benefit that MANY of our employees took advantage of. It is a wonderful benefit! The loan was an interest free loan with a minimum of $500 and a maximum of $3500. The loan was paid back to the company via bi-weekly payroll deductions over a two year period. We allowed for "extras" such as scanners and business related software. One suggestion would be to select a single vendor. We allowed employees to obtain quotes from a vendor of their choice. We received invoices from many different vendors and tracking became an administrative nightmare to say the least. This was soon changed to one vendor and the process ran smoother. We also had a problem with collecting when the associate terminated their employment. We took as much as we could out of their final check but we have sent many to collections and had a few people try to return the computers to us (which we can not do anything with) instead of paying back the loan to the company. This is happens rarely. The program runs smooth for the most part and as I stated earlier employees LOVE IT! |
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Computer Loan Program
posted at 11/16/2000 4:24 PM EST
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Posts: 495
First: 9/30/2000 Last: 8/19/2011 |
We have given our employees an opportunity to purchase any computer package, including monitors, speakers, software packages, printers, etc. The loan is at the same rate that the provider may charge us, we do not look to make a profit on this.
As someone else had mentioned earlier, the only problem we face is recouping payments from employees who have either been terminated or layed off. When there is no income, you cannot make deductions. Set your parameters before you introduce such a plan. Also stipulate what will happen if they face lay off or termination. This is a wonderful benefit for a company to provide, think it out but know that it is a very positive move to make with your staff. |
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Computer Loan Program
posted at 11/17/2000 8:41 AM EST
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Posts: 19
First: 8/3/2000 Last: 11/15/2002 |
Has anyone heard of Einstein Computer Corporation? http://www.einsteincomputer.com/
If so, do you have any feedback regarding benefits or pitfalls? Thanks. |
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