Waive a loan balance

What this achieves

Waiving a loan means the company decides not to collect some or all of what an employee still owes. Because that is money written off and usually income for the employee, it takes two administrators and it is recorded against a reason.

Required role: Administrator.

Before you start

A waiver needs an Occasion, and an occasion is an earning pay element from your own catalogue. If you have no active earning elements, the panel tells you so and no waiver can be recorded until one exists.

The occasion is not a label. It carries the tax treatment applied to the forgiven amount, so choose it on that basis rather than on how it reads.

Steps

Go to Payroll → Loans.
Open the loan.
Select Waive.
Either switch on Waive the full remaining balance, or enter an Amount to waive.
Choose the Occasion.
Add a Note (optional) for whoever approves it.
Select Request waiver.

Nothing is forgiven when you submit

This is the sentence to read twice. Requesting a waiver creates a pending record and changes nothing about the balance. A different administrator has to approve it, and the panel says so before you commit.

Example: Priya Raman requests a waiver on Tom Hargreaves’s loan. Until Daniel Okonkwo approves it, Tom still owes the full amount and payroll keeps deducting.

While one is pending, the loan carries a banner saying so, and Waive is unavailable on that loan until it is resolved.

Full balance and fixed amount behave differently

Option	Description
Waive the full remaining balance	The exact figure is worked out when the waiver is approved, so anything payroll collects in the meantime is taken into account.
Amount to waive	A figure you set. If payroll collects before approval, the amount is reduced to fit the balance — it is never increased.

Example: a full waiver requested on Monday and approved on Friday forgives what is left on Friday, not what was outstanding on Monday.

You cannot enter more than the outstanding balance; the panel says so and blocks it.

Waiving across many loans

Where a decision applies to a group rather than one person, Bulk waive on the loans list does the same thing at scale.

Go to Payroll → Loans.
Select Bulk waive.
Narrow by Departments and Legal entities.
Choose How much per loan.
Choose the Occasion and add a note.
Read the Preview.
Select Request bulk waiver.

Option	Description
The whole remaining balance	Everything outstanding on each matching loan.
A percentage of each balance	A proportion, worked out per loan when the waiver is approved.
A fixed amount each	The same figure off every loan, taken as-is in each loan’s own currency.

Read the preview before submitting. It counts the loans and employees affected, and it lists loans left out because they already have a waiver awaiting approval.

Example: Priya Raman waives a fixed amount across Operations at HC Corp UK Ltd and sees in the preview that two loans are excluded because a waiver is already pending on them.

Two limits are worth knowing. There is a ceiling on how many loans one bulk waiver may cover, and the screen tells you when your criteria exceed it and asks you to narrow them. And where more than one currency is involved there is no combined total — each currency is shown separately, because no exchange rate is applied anywhere in Humavera.

A bulk waiver is approved or rejected as a whole set, not loan by loan.

What the outcome tells you afterwards

A completed bulk waiver reports per-loan outcomes rather than a single result: how many applied, how many were reduced to fit the balance, and how many were skipped. Read it. A loan that was reduced or skipped is one where what you intended and what happened are not the same.

Tax is a matter for your own advisers

Whether a forgiven balance is taxable, and how it must be reported, depends on where the employee is employed and is not a question Humavera answers for you. The product can add a waived balance to taxable pay on the next run, but only if that has been switched on for the relevant statutory profile, and it is off unless somebody turns it on.

Take advice on the treatment before waiving, not after.

What happens next

Once approved, the forgiven amount comes off what the employee owes, and the loan settles if nothing is left. Where waiver taxation is configured, the next payroll run adds the amount to taxable pay with an offsetting deduction, so no extra cash is paid. The loan’s own history records the waiver, the occasion, and who approved it.