Getting started with deductions
The first thing you need to do to start using deductions is to setup your deduction categories. This allows you to setup specific deduction categories which can be tailored to the needs of your business.
To setup a deduction category:
- Go to Payroll Settings > then "Deduction Categories"
- There will already be 2 deduction categories for you (Pre-Tax Deduction and Post-Tax Deduction) you can edit any of these by clicking on the name of the deduction category. To add a new deduction category click the green “Add” button in the top right corner
- Enter a name for the deduction category, select whether it will be a pre or post tax deduction and use the other settings there if required - click save.
Once you have setup your deduction categories they will now be available to be assigned to employees.
Setting up an indefinitely recurring deduction
Follow these steps setup a deduction that recurs indefinitely:
- Go to the employee record for the employee that you want to create the recurring deduction for and under the “Pay Run Settings” section click “Pay Run Inclusions”
- You will then be taken to the following screen:
- Click on “Add” on the right side of "Deductions" and complete the following details:
- Select the appropriate deduction category from the drop down list.
- Enter the deduction amount to be applied per pay run. It can be a Fixed amount, a Percentage of Gross earnings.
- Select whether the deduction should be paid manually, HMRC or a bank account.
- Select if the preserved earnings should be used from the drop down menu.
- Apply a note if you would like this deduction to have a note attached on the employee's pay slip.
- Please state when you want this inclusion to start and when it should expire.
- Click save.
Now, the next time you process pay run that includes this employee, the deduction will automatically appear.
Checking the status of a deduction
You can quickly see the status of expiring deductions by coming back to the employee Pay Run Inclusions screen.
Once you’ve setup your deductions, a summary of the deductions will be displayed which will include:
- The amount or date at which the deduction will expire
- The start date of the deductions
- Whether or not the deduction has actually expired
- For amount based expiries, the current amount that has been paid
- The payment type setup for this deduction
If you have any questions or feedback, please let us know via firstname.lastname@example.org