Set up deductions and contributions

A deduction is an amount that is deducted from an employee's gross pay for something other than statutory deductions. An example could be an amount to be deducted for a coffee fund.

A contribution is an amount that the employer pays on behalf of the employee. An example might be an amount the company pays towards the employee's pension plan.

The most common calculation methods are:

  • Dollar value - Dollar amounts are not linked to earnings categories.
  • Percentage - For percentage amounts you need to know the earnings for which the percentage calculation is done.

All deduction and contributions set up for your company display on the Deductions & Contributions page.Closed From the Payroll menu, select Regular Payment > Deductions & Contributions.

To obtain information about a specific deduction or contribution listed on the Deductions & Contributions page, click its name link and a pop-up window opens describing how the amount is being calculated.

Complete the Deduction and Contribution Code Request form. Service fees apply.

Tasks

  1. Gather all information about the new deduction, including:
    • the name for the deduction
    • the calculation method - a percentage or dollar value?
    • if the calculation is a percentage amount, what earnings are used for the calculation?
    • whether the deduction has a target value

    • if applicable, the tax form box where the year-to-date value is to be recorded for year-end reporting. For example, union dues.

    More information on deductions can be obtained from your accountant, or from the Canada Revenue Agency.

  2. Complete the Deduction and Contribution Code Request form. Service fees apply. Your Service Delivery Team will notify you by email when the request is completed.

  3. Go to the Deductions & Contributions Cycle page.Closed From the Company menu, select Cycles > Deductions & Contributions Cycle.

  4. Click the browser Refresh button to confirm the deduction setup.
  5. Verify that the deduction appears in the Employee Deductions listing.
  6. Edit the cycle setup instructions for permanent values to occur, if applicable.
  7. Click Save.

  1. Gather all information about the new employer contribution, including:

    • the name for the employer contribution

    • the calculation method - a percentage or dollar value?

    • if the calculation is a percentage amount, what earnings are used for the calculation?

    • whether the contribution is a taxable benefit. It is best to establish the correct ruling with the taxation office.

    • if a taxable benefit, the tax form box where the year-to-date value is to be recorded for year-end reporting. For example, employer paid life insurance.

      More information on employer contributions can be obtained from your accountant or from the Canada Revenue Agency.

  2. Complete the Deduction and Contribution Code Request form. Service fees apply. Your Service Delivery Team will notify you by email when the request is completed.

  3. Go to the Deductions & Contributions Cycle page.Closed From the Company menu, select Cycles > Deductions & Contributions Cycle.

  4. Click the browser Refresh button to confirm the employer contribution setup.
  5. Verify that the contribution appears in the Employer Contributions listing.
  6. Edit the cycle setup instructions for permanent values to occur, if applicable.
  7. Click Save.
  1. Click the Pay Period menu and click the Enter button for the pay period you want to work with.
  2. Navigate to the Deductions & Contributions page.Closed From the Payroll menu, select Regular Payment > Deductions & Contributions.
  3. Select an employee name from the Employee List.

  4. Enter deductions and contributions in the appropriate boxes.

    Permanent amounts are identified by values in the Permanent Value field. One-time values can be entered for an employee, even if they do not have a permanent value set up.

    By entering a value in the This Pay Only field, you activate a one-time dollar amount to be deducted or contributed even though it may not be stipulated as part of the deductions and contributions cycle. After the payroll has been processed, the This Pay Only field is cleared.

  5. Click Save.

  6. Repeat steps 2 to 4 for any other applicable employees.

 After entering data on an employee's Deductions and Contributions page, the employee's deductions and contributions fields are unavailable for editing on the Rapid Entry page. The text Ded&Con is displayed next to the fields to indicate this.

Note: Permanent deductions and contributions can be entered for an employee even though they are not requested as part of the Deductions & Contributions Cycle for the current pay period.

Complete the Deduction and Contribution Code Request form. Service fees apply. Your Service Delivery Team will notify you by email when the request is completed.

See also

Field Information

Displays the description of all available deductions. Click the name of the deduction for a description of how the deduction is calculated. To add a new deduction or make a change to the setup of an existing deduction, contact your Service Delivery Team. If the Description is marked in bold, the deduction is set to be taken as part of the Deductions and Contributions Cycle.

Enter a value if you wish to permanently change the employee's deduction amount. Depending on the calculation method for the deduction, this field accepts different values:

  • For straight dollar amounts, enter a dollar value to two decimal places.
  • For rates calculated as cents per $1000, enter the amount to three decimal places (for example, 23.5 cents per $1000 would be entered as .235).
  • For rates calculated as cents per hour, enter the amount to four decimal places (for example, 12.75 cents per hour would be entered as .1275).
  • For percentage rates, enter the percentage to three decimal places (for example, 5.775% is entered as 5.775).

Entering a zero or deleting the value in this field permanently cancels the deduction for the employee.

To override the value in the Permanent Value field, enter a deduction amount that will ONLY apply to this pay period. Any value entered here is blanked out after the pay period has been submitted for processing. This value must be entered as a dollar value.

Depending on the setup for the deduction, this field accepts different values, which are also calculated differently.

  • If the field is preceded by $, the value replaces the permanent value for this pay only.
  • If the field is preceded by A$, the value adds to the amount calculated by the permanent value. (Positive values add to the permanent calculated amount. Negative values subtract from the permanent calculated amount.)

Note: By entering a value in the This Pay Only field, you activate the amount to be deducted or contributed even though it is not stipulated as part of the deductions and contributions cycle. Putting a value, in This Pay Only overrides all other values EXCEPT when a Remaining Target shows COMPLETE.

Enter or change the target value for this employee. This field displays the amount still to be taken after the last submitted payroll. Target values are reduced every pay that the deduction is taken until the target reaches zero. At that point, COMPLETE appears in the field, and the deduction for the employee is no longer taken. When the target reaches zero, you have a number of choices:

  • Remove the permanent value for the deduction, in which case you will no longer receive warning messages saying that the deduction target has been reached, or
  • Delete the entry COMPLETE from the field, in which case the deduction will continue to be taken based on the entry in the Permanent Value field or a one-time deduction entered in This Pay Only.

Note: Targets can only be set up for some employee deductions. Your Service Delivery Team will set up target values for specific deductions on your request

Displays the description of all available employer contributions. Click the name of the contribution for a description of how the contribution is calculated.

To add a new contribution or make a change to the setup of an existing contribution, contact your Service Delivery Team.

If the Description is marked in bold, the contribution is set to be taken as part of the Deductions and Contributions Cycle.

Enter a value to permanently change the employer contribution amount. Depending on the calculation method for the contribution, this field accepts different values:

  • For straight dollar amounts, enter a dollar value to two decimal places.

  • For rates calculated as cents per $1000, enter the amount to three decimal places (for example, 23.5 cents per $1000 would be entered as .235)

  • For rates calculated as cents per hour, enter the amount to four decimal places (for example, 12.75 cents per hour would be entered as .1275)

  • For percentage rates, enter the percentage to three decimal places (for example, 5.775% is entered as 5.775)

Entering a zero or deleting the value in this field permanently cancels the contribution.

To override the value in the Permanent Value field, enter a contribution amount which to apply ONLY to this pay period.

Any value entered here is blanked out after the payroll run has been submitted for processing. This value must be entered as a dollar value.

Depending on the setup for the contribution, this field accepts different values, which are also calculated differently.

  • If the field is preceded by $, the value replaces the permanent value for this pay only.

  • If the field is preceded by A$, the value adds to the amount calculated by the permanent value. (Positive values add to the permanent calculated amount. Negative values subtract from the permanent calculated amount.)

Note: By entering a value in the This Pay Only field, you activate the amount to be deducted or contributed even though it is not stipulated as part of the deductions and contributions cycle.

To request payment of excess deductions accumulated from a previous payroll, enter the amount to be taken (in dollars and cents).

Refer to your Employee Register for the amount of excess deductions on file.

Excess deductions are deductions that are marked as paid, but the employee did not have sufficient earnings in the pay period to cover the cost of those deductions. This most commonly occurs when the employee is not paid for a full pay period or when benefits are continued while an employee is on leave.