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Employee Loans
Benefits & Compensation
Employee Loans
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Our company occasionally offers loans to our employees, which are paid back through payroll deductions. Does anyone have a template for a promissory note that we could have the employees sign and put
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Forums » Topic Forums » Benefits & Compensation » Employee Loans
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Employee Loans
posted at 9/7/2001 3:16 AM EDT
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Posts: 1
First: 9/7/2001 Last: 9/7/2001 |
Our company occasionally offers loans to our employees, which are paid back through payroll deductions. Does anyone have a template for a promissory note that we could have the employees sign and put into their personnel files? |
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Employee Loans
posted at 9/11/2001 7:36 AM EDT
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Posts: 2
First: 9/6/2001 Last: 9/11/2001 |
We prepare a simple note and an agreement. The agreement has all the details. The note refers to the provisions of the agreement. Most of our loans are relocaton related. We have statements in there that allows us around the AFR and imputed interest rules for relocation. Other notes have interest at minimally the AFR.
Are you interested in relocation loan agreements and related notes. I may be able to clean something up to send. dgrazian@gcinc.com |
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Employee Loans
posted at 10/12/2001 9:05 PM EDT
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Posts: 495
First: 9/30/2000 Last: 8/19/2011 |
You'd best check with a lawyer on this one, it's easy for us to lay out a template but we need to know it would stand up in the legal system if the employee was to leave before the loan was paid off.
Have you drafted a template yet? If so, please share it and perhaps we can help you by looking for the loopholes. If you pass on you e-mail address, I'd be happy to try and help you out on this one. |
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Re: Employee Loans
posted at 12/26/2012 4:12 AM EST
on Workforce Management
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Posts: 3
First: 12/26/2012 Last: 1/30/2013 |
Wow, I wish my company would offer some sort of pay day loans with low income. Since you have already understood that my income is pretty low, I have a need to use this service from time to time because I have a big family. Do you know if a lot of companies offer cash to their workers? Interest rate at an average payday loans store is pretty high and I assume that your company isn’t trying to rip you off. |
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Re: Employee Loans
posted at 12/26/2012 4:18 PM EST
on Workforce Management
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Posts: 144
First: 9/21/2011 Last: 2/8/2013 |
This original posting was over 10 years old. Honestly, I don't know of ANY employers who offer any loans outside of those related to 401k accounts. Your employer is not your banker. Your employer didn't choose to have a large family. I think it would be rare to find an employer that will give you a loan. That said, I strongly recommend Dave Ramsey and his budgeting/saving methods so that you don't find yourself in need of a payday loan. |
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Re: Employee Loans
posted at 1/15/2013 11:35 AM EST
on Workforce Management
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Posts: 3
First: 10/4/2011 Last: 1/15/2013 |
Even though the original post is ancient, I'll reply specifically to rrupert. My company still offers employees loans. However, they are for a specific purpose. We offer an employee benefit that allows the employee to purchase personal computer equipment for their home use, up to $3000. The employee buys the equipment up front - from whatever retail store they choose, provide receipts to the office, fills out a security agreement, and promissory note, and then the company provides the money, with the equipment as collateral. We then take the money out through payroll deductions over either a 12 month or 24 month timeframe, depending on the amount. Our employees get an interest free loan, and we get employees with an increased level of computer literacy, in our industry where even basic computer knowledge is not the norm. Plus, we get employees who like us - for giving them an interest free loan 
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Re: Employee Loans
posted at 1/23/2013 3:07 PM EST
on Workforce Management
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Posts: 1
First: 1/23/2013 Last: 1/23/2013 |
In Response to Employee Loans: Our company occasionally offers loans to our employees, which are paid back through payroll deductions. Does anyone have a template for a promissory note that we could have the employees sign and put into their personnel files? Posted by officemgr Our company offers loans in the form of an Advance Toward Future Earnings. Loans are limited to the average earnings an employee in one month. All loans are done through payroll deduction and must be satisfied at the end of the fiscal year. We have found that this one practice has created a bond between our employees and the company. There is a statement in the agreement that says the advance does not guarantee continued employment. It also says that if their employment is terminated-either by the employer or the employee-the balance is due at termination.
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Re: Employee Loans
posted at 1/23/2013 3:56 PM EST
on Workforce Management
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Posts: 1
First: 1/23/2013 Last: 1/23/2013 |
My company does offer employee loans. We do not have any agreements - the company offers the company and with our weekly pay depending on the amount loaned will take between $15-$50 per paycheck. The employee must be in good standing, FT and not had a loan within 9 months. Also we only give loans for car repairs, delinquent energy, water, gas bills, rent, things of that nature. The employee must show proof of the bill to verify the amount necessary. If the bill is $300 they cannot ask for $350. If the company offers such a great benefit they have to have trust that the employee will not quit. Another reason to cap the loan at $750.00. If they do quit the amount owed will not be too much of a balance or a burden to the company. Our employees make hourly wages of $8-15 so a loan to cover bills can be a blessing. |
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Re: Employee Loans
posted at 2/4/2013 7:46 PM EST
on Workforce Management
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Posts: 2
First: 10/18/2011 Last: 2/4/2013 |
In Response to Employee Loans: Our company occasionally offers loans to our employees, which are paid back through payroll deductions. Does anyone have a template for a promissory note that we could have the employees sign and put into their personnel files? Posted by officemgr Another thing to keep in mind is that some states may have wage payment laws that place restrictions on payroll deductions for loan repayments. In Texas, the Texas Payday Law would require written authorization from the employee to make wage deductions for such a purpose, as noted in Especially for Texas Employers online at http://www.twc.state.tx.us/news/efte/allowable_deductions.html#loansadvances. |
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