Employee Deductions

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Deductions have the following fields and are added at an employee level in payROL:

  • Name => Name of deduction/addition
  • GL Acct. Code: => General Ledger deduction account
  • $/Pay => A fixed dollar value
  • Rate/Pay => A percentage of gross 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 => "After Tax" (deductions are calculated on gross salary but deducted from the nett salary)
  • Addition or Deduction => Deduction (amount owed to the employer) / Addition (reimbursement to the employee)
  • Recalc. => If the Recalc field is set to yes it will only be used if there are amounts in the $/Pay and Balance fields

Other points regarding Deductions/Additions:

  • Additions, if an amount is used it is added to the net salary. If a percentage is used the amount to be added is calculated based on the net salary after tax is deducted and added to the net salary.
  • 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
  • An after tax deduction (recalculate balance) can only have a fixed amount in the $/Pay field. Percentages can not be used to deduct and recalculate balances
  • Deductions will only show on payslips if they are allocated to the correct deduction accounts
  • If a deduction is created using a Kiwi Saver account then the $/Pay field is ignored. Kiwi Saver deductions can only be setup using a percentage in the Rate/Pay field.