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Other Deduction Setup

Use

You can setup the various deduction items in this screen. Our service provides you with some pre-defined deduction items, which cannot be edited. Further you can customise your own deduction items, if the pre-defined items does not meet your requirements. You can also specify if each individual deduction item is subjected to PAYE, NI or pension contributions.

Note: DGP refers to Deduct from Gross Pay and DNP refers to Deduct from Net Pay

Path

Employer / Setup > Chart of Setup > Payment and Deduction > Deduction Setup

OR

Bureau Main Page > Admin Payrun > Enter > Employer / Setup > Chart of Setup > Deduction Setup

OR

Multi-Sites Payroll Starter > Head Office Details > Employer / Contractor's Setup > Chart of Setup > Other Deduction Setup

Fields Available

Fields marked with an asterisk (*) are mandatory.

• Deduction Item Code: Enter here the deduction item code. Please note this code is useful when you import the employee time sheet.
• Deduction Name: Enter here the description of the deduction item.
• PAYE purposes: Select DNP/DGP from the drop down list. If you select DGP (Deduct from Gross Pay), the deduction will be made from the employee's pay before PAYE tax is calculated. If you select DNP (Deduct from Net Pay), the deduction will be made from the employee's pay after the PAYE tax is calculated.
• Nic's purposes: Select DNP/DGP from the drop down list. If you select DGP (Deduct from Gross Pay), the deduction will be made from the employee's pay before the NIC is calculated. If you select DNP (Deduct from Net Pay), the deduction will be made from the employee's pay after the NIC is calculated.
• Pension purposes: Select DNP/DGP from the drop down list. If you select DGP (Deduct from Gross Pay), the deduction will be made from the employee's pay before the Pension Contributions are calculated. If you select DNP (Deduct from Net Pay), the deduction will be made from the employee's pay after the Pension Contributions are calculated.
• Qualify Earning for AE: Qualify Earning for Auto Enrollment (AE) means to decide if the earning item is to be included in AE assessment.
• Holiday Purposes: If you select DNP (Deduct from Net Pay) the holiday will be deducted from the Net Pay If you select DGP (Deduct from Gross Pay) the holiday will be deducted from the Gross Pay.
• Occurrence: Occurrence refers to the frequency setting for the item i.e. how often the payment or deduction item will be applied to the employee's wages. If the occurrence is set as Recurring, the payment or deduction item will automatically be included in the employee's wages each and every time the employee's pay is calculated. If the occurrence is set as 'Non-Recurring', the payment or deduction item will not apply regularly to the employee's wages. The item will only apply on a one off basis in the next pay calculation you run for the employee and after that it will not automatically reappear.
• Remark: The remarks for the deduction type will be displayed here.  
• Action: The various tasks associated with the data in each row will be displayed here. For example Save, Edit, Delete, etc.

Associated Tasks

• Save: To save the deduction item you created, click on this button.
• Edit: To make any modifications to the deduction item, click on this button.
• Back: If you have finished viewing or modifying the details and wish to leave this screen, click on this button.

Related Topics

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