Setting up 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.

Setting up a deduction category

  1. Go to 'Payroll settings' > 'Deduction categories'
  2. There will already be 4 basic deduction categories for you;
    1. Zakat (deducted from payroll)
    2. Religions trip (deducted from payroll) 
    3. PTPTN (Student Loan)
    4. Recovery of advanced or over-payment of wages
  3. 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
  4. Enter a name for the deduction category, an external ID if required and the payment classification - click 'save'.
  5. 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 setup a deduction that recurs indefinitely:

  1. 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'
  2. You will then be taken to the following screen:


  3. Click on 'Add'.
  4. Select the appropriate deduction category from the drop down list. The business deduction categories (on the payroll settings > deductions page) will determine what the options are. There will be 5 system default deduction categories consisting of;
    1. Zakat (deducted from payroll) - Post-tax
    2. Religions trip (deducted from payroll) - Post-tax
    3. PTPTN (Student loan) - Pre-tax
    4. Recovery of advanced or overpayment of wages - Pre-tax
  5. Enter the deduction amount to be applied per pay run. It can be a Fixed amount or a Percentage of gross.
  6. Select whether you want to pay the deduction manually, paid to a bank account, paid to the LHDN/IRB account, or paid to Zakat (this is the only option if the deduction category is Zakat). 
  7. If in Step 4, you have chosen a bank account, ensure you then select the relevant bank account which will need to have been created first on the 'Employee file' > 'Bank accounts' page.
  8. Enter any notes if you want the employee to see them on their pay slip.
  9. Enter the date this inclusion is to commence.
  10. Choose when this inclusion should cease ('on the following date', 'never' or 'after the following amount has been reached');
  11. Click on '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 deductions, the current amount that has been paid
  • The payment type setup for this deduction

N.B. A deduction expiry date means "will not be included in pay runs where the pay period starts after this date" and NOT the date paid.

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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