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 > 'Pay run settings' > '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 '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'.
- External Id: If an external id is used that has been used before you won't be able to save it if the 'Unique External Id' setting is switched on. This setting is located on the Payroll settings > Advanced settings page. See here for more information.
Once you have setup your deduction categories they will now be available to be assigned to employees.
Deductions cannot be imported.
Setting up an indefinitely recurring deduction
Follow these steps to 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'.
- 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' a 'Percentage of NET' or 'Varied based on earnings amount'.
- You should set the priority if there is more than one inclusion.
- Student loans need to be taken into account and the correct setting should be selected here.
- Select whether the deduction should be paid manually or 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.
Restoring a deleted deduction
If you need to restore a deduction that you've previously deleted, you can do this by going to the Payroll settings > Restored deleted items page, and selecting 'Deduction category' from the drop down list. A list of all deleted deductions will appear and you can click the 'Restore' option against the deduction that you are wanting to reinstate.
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