Compute final pay with an outstanding loan and equipment accountability
When a resigning employee has an active company loan and unreturned equipment, both are deducted from final pay. If the final pay is not enough to cover both, deductions follow a priority order and the shortfall is flagged as a receivable.
Available on Pro Enterprise
Example
An employee resigns with:
- Final gross earnings (unpaid salary + prorated 13th month + leave conversion): ₱18,000
- Remaining company loan balance: ₱12,000
- Unreturned equipment accountability: ₱3,500
Deduction order:
| Item | Amount |
|---|---|
| Gross final pay | ₱18,000 |
| Government contributions (SSS, PhilHealth, Pag-IBIG) | −₱1,000 (estimate) |
| Withholding tax / tax refund | −₱500 (estimate, depends on annualization) |
| Company loan acceleration | −₱12,000 |
| Equipment accountability | −₱3,500 |
| Net final pay | ₱1,000 |
All deductions fit within the gross amount. The employee receives ₱1,000.
If final pay cannot cover all deductions
If the loan balance were ₱16,000 instead:
- After government deductions and the full loan, net final pay would be negative
- OneHRIS caps the loan deduction at what is available and marks the remaining ₱X as a receivable
- The equipment accountability is not deducted since there is nothing left
- HR receives a flag showing the shortfall and must follow up separately
How to process it in OneHRIS
- Open the employee's offboarding record and go to Final Pay.
- Outstanding loans are added automatically. Verify the balance is the accelerated total.
- Select Add Adjustment, choose Deduction, category Equipment Accountability, and enter the amount with the asset reference.
- Review the net result. OneHRIS shows a warning if deductions exceed gross final pay and adjusts automatically.
- Generate the payroll run and approve.
See how to compute an employee's final pay for the full final pay workflow.
Questions people ask
What order are deductions applied in final pay?
Government-mandated deductions first (SSS, PhilHealth, Pag-IBIG, withholding tax), then company loan amortization, then equipment or asset accountabilities. The order can be adjusted in Settings.
Can final pay go negative?
No. OneHRIS caps deductions so net final pay is never below zero. Any balance beyond what final pay can cover is flagged as a receivable from the employee.
Is the equipment deduction legal without the employee's signature?
Only with the employee's written acknowledgment of the accountability, signed when the asset was issued. Keep this on file before deducting.