Loans and recurring deductions are set up once on the employee's page, and every payroll then deducts them until they are paid off or you stop them. This guide covers SSS and Pag-IBIG loans, company loans and cash advances, voluntary savings and other deductions.
The kinds of deduction
| Type | Authorization needed |
|---|---|
| SSS salary loan, Pag-IBIG loan | None: the law requires them |
| SSS WISP Plus (voluntary), Pag-IBIG MP2 savings (voluntary), Pag-IBIG voluntary upgrade, Other deduction | The employee's written authorization on file |
| Company loan, Cash advance | A signed salary deduction authorization, uploaded or signed in the portal |
Add a loan or deduction
- Open Employees, choose the employee and go to Pay.
- On the Loans and deductions card, choose the Type.
- Fill in the Name on the payslip and the Loan or reference no. if there is one.
- Choose how it is Deducted: Per month (split across pays) or Every pay, and type the Amount.
- Type the Loan total if there is one. Deductions stop once the total is reached. For a company loan the total is required.
- Choose the Start date and, if you know it, the End (optional) date.
- Give the authorization (see below), then click Add. You see "Saved. It is deducted from the next payroll computed."
For WISP Plus, MP2, the Pag-IBIG voluntary upgrade and other deductions, tick the box that the employee's written authorization for this deduction is on file. Sahora won't save it otherwise.
Company loans and cash advances
Paid plans Company loans and cash advances come with the paid plans. On the Free Plan, the card shows what the paid plans add; SSS and Pag-IBIG loans work on every plan.
A company loan or cash advance needs the employee's signed salary deduction authorization. Choose one:
- Upload the signed copy (PDF, PNG or JPEG, up to 2 MB), or
- Send it to the employee to sign in the portal. The loan shows "waiting for the signed authorization" and nothing is deducted until the employee signs under My loans (see Your loans). You can still click Upload signed copy if they sign on paper instead.
The signed copy then appears as a link beside the loan.
Your company's rules for these loans are in Company setup → Payroll settings, under Company loans and cash advances (owners only): the Largest loan (× monthly basic), the Most a payroll may take of gross pay, and whether an employee may have only one open loan and one open cash advance at a time. If a loan is over the limit, Sahora says so and shows the most this employee may borrow.
How deductions are taken
- They are taken after contributions and tax, government loans first.
- If the pay is too low, the rest waits for the next pay.
- Deducted and Balance count approved payrolls only. Click the amount deducted to see each payroll's deduction and the balance after it.
- Schedule shows the pays left and when the loan should end.
Pause, close or remove
- Pause stops deductions for now; Resume starts them again.
- Close ends a deduction, for example when a loan was paid outside payroll; Reopen brings it back.
- Remove is only for a mistake and only before anything was deducted. Otherwise you see "It has already been deducted on a payslip; close it instead."
Good to know
- Owners, payroll officers and HR admins can add and change loans and deductions.
- When an employee leaves, the final pay can deduct the whole remaining balance (see When an employee leaves).
- Loan and voluntary contribution remittance sheets are part of the contributions file (see SSS, PhilHealth and Pag-IBIG contributions).