In ProgramPay, you can submit loan repayments through two (2) methods:
- Combined with a regular payroll contribution submission
- Via an Off-cycle Loan Repayment
Submitting Loan Payments along with payroll contributions
While submitting a regularly scheduled payroll contribution, either manually in the contribution grid or with a file upload, you may also include loan repayments. Loan repayments default to $0 when you enter the contribution grid. If there will be a loan repayment, select from the 1) Expected repayment amount for this pay period; or 2) The loan payoff value for each outstanding loan.
See a sample from the contribution grid pictured below:
Off-cycle Loan Payments
How to make loan payments separately from a regular payroll contribution
If you would like to submit a loan payment outside of a regularly scheduled contribution date, you may do so from the Contributions dashboard by selecting Other Actions - "Loan Repayment".
This feature will allow you to process loan repayments as of any calendar date, rather than repaying along with a regularly scheduled payroll.
Participants with outstanding loans, including the expected pay period repayment and the payoff balance will populate as shown in the grid below after you click on the selected Loan Payment box (scroll down to next image):
For each participant that has one or more loans, each loan number will be referenced in the "Loan Number" column(s) and then, by clicking into the "Loan Payment" column(s), the allowable payment amounts are shown. These allowable payment amounts are provided from Voya to Vestwell on a daily basis. The only allowable loan payments are:
- $0 - If there is no payment with this contribution, you may choose to pay $0
- Expected pay period repayment amount
- Loan payoff amount
Once the loan repayment amount has been entered, click out of the box and proceed with selecting "Send & Validate".
After submitting the loan repayment, you will have a chance to review the submission. If you are satisfied with its accuracy, click the "Complete Submission" button to send it along for further processing. Otherwise, you may choose to Edit Submission or Cancel.
The below pop-up will display after selecting "Complete Submission".
After returning to your Contributions dashboard, your recent submission will display in the History with the total amount, status and the action button. The contribution will be marked clearly as a Loan Repayment.
NOTE: If there are no participants in your plan with an active loan, you will not be able to launch into this feature.
NOTE: Loan payments may also be entered within a regular Off-Cycle contribution.
Loan payment submissions will be clearly labeled under History:
Loan Payments & Integrated Payrolls
If your plan uses Payroll Integration or Payroll Concierge Services to process payrolls and loan repayments, ProgramPay will still validate those payments against the known expected payments and payoff values provided by the record keeping system. If the loan payment(s) do not match one of the expected values, the unmatched loan payment will be dropped and the remaining contribution file will be able to process through. In this case, you will receive an email notifying of an issue with your payroll notifying you to come into ProgramPay to get the details. To learn more about validation errors on integrated payrolls, please read here.
Loan Payments & Conversion Plans
ProgramPay validates against the known loan repayment schedule in the record keeping system and loan payments can only be processed based on that repayments schedule. If your plan in converting to the ABA Retirement Funds from a different record keeper, you will not be able to make loan payments until the conversion of the loan data from the prior record keeper is complete.
Please contact: firstname.lastname@example.org for further assistance.