Deductions

This section is used to process any deductions. These can be either pre- or post-tax, depending on how the deduction has been defined in the pay items file. This section displays any standard deductions which have been imported from the employee file.

Entering a New Deduction:

  1. Select the Deductions node for the employee
    The Pay Items Deductions screen will open showing a list of deductions.
  2. Press Ctrl+N, or click on the last line then press the down arrow to add a new deduction.
  3. Complete the information below as required:
Field Explanation
Pay Items Select the required deduction type from the drop-down list.
Hrs/Unit Enter the number of hours or units to be deducted
Uom Unit of measurement for this item.
Rate The dollar rate to be deducted for each unit
Factor The factor is a multiplication which is applied to the pay item to calculate any weighting, for example in the case of double time. It is not entered here.
Amount This will be calculated automatically
Memo To record any notes relating to this deduction, double click in the memo field. Enter the required memo and then select Print on Payslip if you want the memo to print on a payslip, otherwise it will show only on reports. 
  1. Once you have entered the required deductions click Apply Changes to save the information.

As you change and apply new deductions, the totals in the Pay Summary at the bottom of the screen will be automatically updated.

Automatic Changes to Deductions:

In some cases the system will automatically override a deduction. A payrun message will be displayed if the system makes any automatic changes to a deduction. For example: 

  • Increasing the pay period quantity will cause standard deductions to increase by the same proportion automatically.
  • If the final instalment of a reducing balance deduction has been reached, the amount deducted will be reduced accordingly.
  • If a Deduction has a date range applied, and the final date is prior to the date range for a payrun, the deduction will not be applied.
  • If a protected earnings threshold has been exceeded, the amount deducted may be reduced.
  • If the final date has been reached, the deduction may not be applied in the payrun.

Deductions are applied from the top down. Use the blue Down and Up buttons to move a deduction higher or lower on the list. The order of deductions can be important particularly where protected earnings are in place.