Understanding Employee Loan Agreements for Pool and Patio Businesses

Business-focused Sunflower Pool and Patio knows that an comprehensive employee loan agreement is an arrangement that is bilaterally obligational and allows an employee to receive a monetary loan from a business. For a business owner in the pool industry, an employee loan agreement is relevant because several examples of employee loan agreements are often on the internet today. It is important for a pool and patio business owner to define how an employee loan agreement will function. There are benefits to having an employee loan agreement, including possible tax savings as well as other important innovations that streamline a business.

There are benefits to employees and their employers when offering and implementing an employee loan agreement. From the perspective of a small business owner, an employee loan agreement may result in the improvement of productivity and increased attitudes from workers. Workers may also feel as though their contributions are being rewarded and acknowledged. To that end, increased productivity and attitudes from workers leads to more returns for a business with an employee loan agreement. Employees are offered additional support and comfort, which can lead to improved production. Nothing is more detrimental to a small owned business than increased employee turnover or low employee productivity. As such, an employee loan agreement should be given consideration by a pool and patio business.

An employee loan agreement can be beneficial in different ways and different methods of application will suit all businesses. For instance, in a pool and patio business, owners can benefit by setting parameters and expectations that will improve business from a combination of the following. A pool does not simply last forever. With the passage of time, these amenities deteriorate. A lack of maintenance can lead to coverage costs. An employee loan agreement is a good investment if used to reward hard work and loyalty. For example, if a worker is having difficulty meeting an obligation, this process can also provide assistance. In this instance, it is important to consult with a Kansas-based business attorney who specializes in contract law so that both the pool and patio business, as employers do not run afoul of any legal challenges.

As a business in the pool and patio industry should ensure that they avoid common pitfalls of employee loan agreements. Such pitfalls can reduce company satisfaction and impede the practice of streamlining. For example, when an employee loan agreement is not fully executed or signed by both parties, a lawsuit may ensue. Employees who are repaying a loan may complain to State authorities. If poorly executed, an employee loan agreement can cause the perception of favoritism. For example, the employee may leave the company with a physical asset worth more than the loan. The rest of the employees may ask why he was selected and not they all. Therefore, it is imperative that a pool and patio business have a written and airtight agreement.

It is essential for a pool and patio business to be thoughtful of what they expect from their workers who have signed an employee loan agreement. If expectations are not set, a company may find itself experiencing some difficulties from their workers. When employees understand the requirements of an employee loan agreement, they may be more likely to adhere to them. If an employee loan agreement is based in Kansas, it is possible for a business to lose a great deal of money. Every pool and patio business should be encouraged to review their formal contract template so that it can be applied to an employee loan agreement.

Pool and patio businesses should not fail to consider the impact that an employee loan agreement has on their business. In many cases, employee loan agreements can be a liability. If a business selects the wrong employee to give a loan to, this may cause employees to feel resentment or have even low productivity. If an employee fails to adhere to an employee loan agreement, a business may lose thousands of dollars. For example, if an employee jumps ship one month after receiving a loan, the business may be left with the costs of the loan. As such, all parties should be very careful when entering into an employee loan agreement.

In order to customize an employee loan agreement, a pool and patio business should consider participating in existing industry practices and standards. For seasonal businesses, all employees should be offered the same terms and conditions. Having a clause that makes the employee responsible for any attorneys’ fees will make the employee loan agreement further streamlined and more valid under scrutiny. Most importantly, a specific time frame should be included. For instance, if the employee wants to borrow $10,000 but does not foresee repayment in one year, then a pool and patio business will need to include the time frame in the specific agreement.

Another important point to consider for a pool and patio business is to include language that allows the employer to offset the loan against the employee’s final paycheck if he or she still owes money at the time of termination. In other words, a pool and patio business can collect on the outstanding balances of a loan by garnishing wages or offsetting them. Under Kansas law, a pool and patio business should be sure to note the specific amount of all retentions and deductions, or else they could run afoul of State law.

Sunflower Pool and Patio is in the business of helping to maximize gains for its employees, business and community at large. In many cases, a pool and patio business can benefit from entering into an employee loan agreement when laid out by a Kansas-based business attorney experienced in drafting and enforcing contracts. In addition, employees of a pool and patio business can benefit from receiving monetary assistance. It is important for a pool and patio business to build strong relationships with their workers in a manner as to avoid low productivity and increased employee turnover. For these reasons, it is suggested that pool and patio businesses consult with an experienced business attorney about an employee loan agreement.