Once a deduction has been set up (the tutorial can be found in Setting up Employee Deductions), you are able to update these deductions by going into the Employee tab on the dashboard and clicking on the employee's name from the list or doing a search for them in the search box.
Once you have chosen the employee from the list, you need to click on the 'Pay run settings' > 'Pay run inclusions' link
Choose which deduction you would like to update and click on it. This will open up the deduction in detail and allow you to adjust:
- The deduction amount: It can be a fixed amount, percentage of gross earnings or a varied amount based on earnings.
- Whether or not the deduction should be 'Paid manually', to a 'Bank account', or to the CPFB
- Preserved earnings: Preserved earnings is defined as the minimum net earnings an employee MUST be paid before a deduction amount can be applied in the pay run. See further down for more information on preserved earnings
- Enter any notes if you want the employee to see them on their pay slip.
- Enter the date this inclusion is to commence.
- Choose when this inclusion should cease (a specific end date, never or once a particular dollar amount has been reached).
Click Save when finished.
Setting up Preserved Earnings
Preserved earnings is defined as the minimum net earnings an employee MUST be paid before a deduction amount can be applied in the pay run. For example, an employee could have a garnishee order but part of the order includes that the employee's net pay cannot be reduced to less than $300 per week as a result of the garnishee order. To set this up of example, you would:
(a) Preserved earnings: select 'Once a minimum net earnings limit has been reached';
(b) Preserved earnings amount: enter 350;
(c) If the amount is not reached: here you can choose to have none or only part of the deduction amount processed in the pay run;
(d) Carry forward unpaid deduction amounts: here you can choose whether or not you want any unpaid deduction amounts to be carried over to following pay runs. For example, say an employee’s recurring deduction amount was fixed at $100 per pay run but only $50 was deducted in the pay run. If you choose to carry forward the unpaid deduction amount, the unpaid $50 will be carried over and a total of $150 will be deducted in the following pay run. If you choose not to carry it over, the unpaid $50 deduction amount will be disregarded and in the following pay run only the recurring $100 will be deducted.
(e) Carry forward unused preserved earnings: here you can choose whether or not you want any preserved earnings that are paid below the preserved earnings carried forward. For example, an employee has preserved earnings set at $300. In one pay run the employee is only paid $200 in net earnings. If this setting is ticked, the difference of $100 will be carried over so that the preserved earnings for the next pay run will be $400.
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