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 5 basic deduction categories for you;
   1. Chinese Development Assistance Council (CDAC) Fund
   2. Eurasian Community Fund (ECF)
   3. Singapore Indian Development Association (SINDA) Fund
   4. Community Chest
   5. Mosque Building and Mendaki Fund (MBMF)
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' 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, percentage of gross earnings or a variable amount based on earnings
• Select whether the deduction should be paid manually, to a bank account, or to the IRAS. Note, the system default SHG funds can only be paid to the IRAS.
• 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
  
  
  
  

Now, the next time you process pay run that includes this employee, the deduction will automatically appear:

Something to keep in mind with system calculated deductions in the pay run (for self help groups only), is they exclude earnings which are associated with a pay category which has the 'SHG exempt' setting selected. Deductions manually added within a pay run do not check for this setting. Example: pay run inclusion set up for CDCA tiered deduction, pay run earnings are $2000 SHG applicable (do not have the 'SHG exempt' setting selected) and $500 SHG exempt (have the 'SHG exempt' setting selected in the pay category). I n the pay run the calculated deduction amount for CDCA will be $0.50. If the CDCA deduction is manually added into the pay run, the $ amount of the deduction is specified and the pay categories/settings are not considered. Business deduction categories do not apply this same logic, they will use all earnings within the pay run, irrelevant of the 'SHG exempt' setting. Using the above earnings with an 'Insurance' deduction, the entire $2500 would be used in the calculation for the pay run.

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. 

If you have any questions or feedback, please let us know via support@yourpayroll.io