Company Loan For Computer Purchase Policy

The Company believes each person who wants a personal computer to enhance their job skills should have an opportunity to purchase one. With prior approval, an employee may purchase any computer enhancement software or even an entire updated system.

After selecting a system, the employee should give the invoice/ bill to the accounting department and they will pay it. At that time, you will be given a payroll deduction authorization/ loan form. This entitles the company to recover any money due in the event of non-payment by you for any reason. Computer purchase loans are made for a period not to exceed two years and are at zero percent interest. Note: under IRS rules (IRC Section 7872), interest-free employer loans with an outstanding balance above $10,000 may result in imputed interest being treated as taxable compensation to the employee; loans of $10,000 or less are generally exempt from this rule. Upon termination, the entire balance is due within 30 days unless a payment plan is established.