Deductions have the following fields and are added at an employee level in payROL:
- Search for the employee and click on their record in payROL.
- Select the Deductions tab within the employee record screen
- Name => Name of deduction/addition
- GL Acct. Code: => General Ledger deduction account
- $/Pay => A fixed dollar value
- Rate/Pay => A percentage of gross or net pay entered as a whole number (e.g. 3% = 3.00)
- Balance => This is the balance of the amount to be repaid
- This would be used in the case of a loan or uniform costs that have a high value and are to be paid over an extended period of time, e.g. $500 over 10 weeks at $50 per week. The $/Pay field will contain the $50 and the Balance field the total amount to be paid. When a pay is added for the employee and the batch processed the $/Pay will be subtracted from the Balance and the Balance updated. Once the amount has been paid in full, the deduction will be set to inactive. A Percentage of pay can also be used and will behave in the same way as an amount
- Type => This will either be a "Salary Sacrifice" (before tax and calculated on gross salary) or "After Tax" (calculated on net salary)
- Addition or Deduction => Deduction (amount owed to the employer) / Additions haver been removed and replaced with reimbursements
- Recalc. => If the Recalc field is set to yes it will only be used if there are amounts in the $/Pay or Rate/Pay and Balance fields
- Once all information has been entered, click the Add New Deduction button.
Other points regarding Deductions/Additions:
- A "Salary Sacrifice" deduction can NOT be set to recalculate the balance it can only be used to deduct percentages or fixed amounts before tax
- Additions have been removed from the list. If an employee needs to be reimbursed then a reimbursement line item must be used when paying an employee (i.e. Meals-Overtime / Accommodation)
- If there is only an amount in the $/Pay or Rate/Pay fields and no balance, the deduction/addition will remain active until it is manually removed
- Any amount that is placed in the balance field must be equal to or greater than the $/Pay amount
- If the final amount to be deducted is greater than the remaining balance the deduction amount will be recalculated and the remaining balance will be deducted from the pay
- If the Recalc Field is set to "NO" then the Balance will not be updated
- Deductions will only show on payslips if they are allocated to the correct deduction accounts
Once deductions are added to an employee record, they will be deducted from that employee each & every pay run until it is removed.
To remove a deduction, go to:
- System -> Reports -> Current Deductions
- Click on the link to go to the employee record
- Click on the Deductions tab
- Scroll down & tick the box next to 'Delete:'
- Click the 'Save Deductions' button to remove the deduction from the employee