Deductions can easily be applied to employees as a one time amount or a recurring amount.
To be able to apply a deduction, it needs to be set up as a 'deduction type' (Payroll Settings > Deductions).
For more details and the full workflow for deductions, refer to the Deductions Guide.
Some examples of deductions might be:
- Adding child support deductions
- Processing an overpayment
The process that you follow when applying a deduction will depend on whether or not the deduction is being applied before or after payroll has been processed.
This type of deduction can only be done before pay has been generated. The benefits of using this method are:
- The deduction can be paid directly into a 3rd party bank account (ie. child support)
- The amount can be split into manageable per cycle amounts
- It can be set as a reoccurring amount
- Can be done before pay has been run
Follow these steps if payroll hasn't yet been run.
- Go to People, Approved People. Find the employee and click on their name to go to their profile.
- Click on the Financial tab.
- Select the Deductions section.
- Complete the deduction details:
Type = e.g. Overpayment
Amount = The total amount that needs to be deducted from the employee. Please remember that if per paycycle amount is NOT defined then it will simply take this total amount each time a paycycle is generated for the employee. If a per paycycle amount is defined, then this amount value is the total that needs to be paid off over a period of time until the amount reaches $0.00.
Recurring = Is this deduction a recurring deduction? If you are paying off a total amount over a period of time by entering a value per paycycle, be sure to select NO.
Per Cycle Amount = If an amount per paycycle is entered, then it will treat the above Amount as the total you would like deducted from the employee and then will take away the amount per paycycle until the entire deduction amount is paid. If you would simply like an ongoing deduction to occur do not enter a value here.
Threshold Amount = The threshold amount of gross earnings that must be earned before the deduction can be taken.
Start From = Select the first period end date that you would like this deduction to apply to.
Recur till = This allows you to select a date in which you would like the deduction to stop if desired.
- Click Add.
Please note: If the deduction is applied after timesheets have been generated it will not go through to paycycle. In this case the deduction needs to be added in Paycycle.
Please note: If you attempt to change the STP reporting portion of a deduction the below pop up box will appear. Your current financial data will always update. The checkbox will only appear in the first 14 days of the financial year as an option to update the previous year (this is the time you have to change and finalise STP data with ATO).
You can use this method to apply a deduction before or after pay has been run by editing a payslip.
- Go to Payroll > Pay.
- Find the employees Draft Payslip and click Actions, Edit.
- Click Add Deductions. A deductions section will appear below. Enter the % or $ amount based on the deduction type.
- Click Calculate Totals and Preview PDF to check everything is correct.
- Click Update Payslip.
- Enter a reason for your update and click Save Changes.
- The deduction will be applied when payslips are generated.