Add or change deductions and contributions entries

Tip: You must open a pay period to use this feature / functionality. Click the Pay Period menu and click the Enter button for the pay period you want to work with. The Payroll and Process menus become available.

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.

Use the Deductions & Contributions page.Closed From the Payroll menu, select Regular Payment > Deductions & Contributions. to enter permanent values, one-time only amounts, and if applicable any remaining target amounts that are applicable to deductions.

To obtain information about the functionality of 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.

Note: When you set up your company-level data, you created payroll cycles, which dictate which deductions and contributions apply to specific payroll runs. The data entered on the Deductions & Contributions page identifies how much should be taken for each employee.

Tip: Usually, deductions and contributions are entered through the Rapid Entry page. However, the Deductions & Contributions page contains more options to customize an employee's deductions and contributions than available on the Rapid Entry page. If you are setting up a new employee, or there are changes to be made on an exception basis to an existing employee, you must use the Deductions and Contributions page.

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.

Identifying deductions and contributions signaled on the current run

To view the deductions and contributions applied to the current period, go to the Deductions & Contributions page.Closed From the Payroll menu, select Regular Payment > Deductions & Contributions.

For the current payroll run, values for descriptions:

  • in BOLD are applied
  • in regular font are not applied

When you request a preview of your payroll, the actual dollar values processed for deductions and contributions display.

Prerequisites

  • All deductions and contributions are set up by your Customer Support Team.
  • At least one Deductions & Contributions Cycle is set up.
  • The Cycle to be used for this pay period is selected.

Video

Add or edit Employee Deductions and Contributions

Tasks

  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 5 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.

Override entries in the This Pay Only field must be entered as dollar values.

Example:

The RRSP deduction is a percentage calculation (5%) and a one-time amount of $25.00 is to be collected in addition to the 5%:

  • If A appears next to the This Pay Only field.
    • Record the Permanent Value on paper for future reference for this employee.
    • Enter 0.00 as the Permanent Value.
    • Enter 25.00 in the This Pay Only field
  • If A does not appear next the This Pay Only field, and the 5% value equals $66.00, enter 91.00 in the This Pay Only field (66.00 + 25.00).
  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 the one-time override in the This Pay Only field.

    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.

    Important: Zeroing out the permanent value is ONLY required when the This Pay Only value ADDS or SUBTRACTS from the Permanent value and an A appears next the This Pay Only field. Record the Permanent Value on paper for future reference for this employee. Enter 0.00 as the Permanent Value.

    Note: Remember to reenter the permanent value after this payroll has been submitted for processing.

  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.

If an employee's pay extends beyond one pay period (when you stipulate an Applicable Period of Time on the Employee Timesheet page greater than the usual length of the pay period), you must consider overriding permanent deductions and contributions on the Deductions & Contributions page.Closed From the Payroll menu, select Regular Payment > Deductions & Contributions. Most often, the reason for this is that the employee is being paid for future pay periods when a deduction or contribution would be taken; if the employee's payment has doubled, for example, the straight dollar deduction or contribution must also double.

  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 the one-time override in the This Pay Only field.

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

    Note: The $ indicator with the This Pay Only field indicates that you must enter a replacement dollar value; A indicates that a dollar value entered ADDS to or SUBTRACTS from the permanent value.

    Important: Zeroing out the permanent value is ONLY required when the This Pay Only value ADDS or SUBTRACTS from the Permanent value and an A appears next the This Pay Only field. Record the Permanent Value on paper for future reference for this employee. Enter 0.00 as the Permanent Value.

    Note: Remember to reenter the usual permanent value after this payroll has been submitted for processing.

  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.

Entering 0.00, or deleting the value, for the permanent value effectively cancels an employee's deduction or contribution.

  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 the employee from the Employee List.
  4. Enter 0.00, or delete the value, in the Permanent Value field.
  5. If the deduction has a target - enter 0.00, or delete the value, in the Remaining Target field.
  6. If there is a corresponding employer contribution - enter 0.00, or delete the value, in the Employer Permanent Value field.
  7. Click Save.

You can enter a new permanent value and a one-time value at the same time. This allows you to make retroactive adjustments.

Example:

Dollar calculations: If a charity deduction changed from $10.00 to $12.00 and it should be retroactive one pay, enter 12.00 for the permanent value and 14.00 for this pay only.

Percentage calculations: The RRSP deduction rate changed from 5% to 7% and is retroactive for one pay. The earnings to calculate the deduction on are $1000.00:

  • Enter 7.00 as the new permanent value for future calculations.
  • If A does not appear next to the This Pay Only field, enter 90.00 in the This Pay Only field to collect the current amount plus the retroactive amount. ($1000.00 x 5% + $1000.00 x 2%)
  • If the A does appear next to the This Pay Only field, enter 20.00 in the This Pay Only field to collect the retroactive amount. The regular calculation will continue.
  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 the employee from the Employee List.
  4. Enter the new permanent value (dollar or percentage) in the Permanent Value field.

  5. In the This Pay Only box, enter a dollar value that covers the new regular amount plus the amount that was missed on the last pay.

    Note: The $ indicator with the This Pay Only field indicates that you must enter a replacement dollar value; A indicates that a dollar value entered ADDS to or SUBTRACTS from the permanent value.

  6. Click Save

    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.

Deductions and contributions for an employee can be suppressed either permanently or for the current pay period only, even if they are requested on the Deductions & Contributions Cycle page.

Important: Use this procedure only to suppress amounts for an individual employee. If you want to suppress the deduction and contribution for all employees, suppress the deduction on the Deductions & Contributions Cycle page.Closed From the Company menu, select Cycles > Deductions & Contributions Cycle.

  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 the employee from the Employee List.

  4. Locate the deduction or contribution to suppress.

    • To permanently suppress the amount, enter 0.00 in the Permanent Value field, OR highlight the amount and delete the value altogether.
    • To suppress the amount for ONLY the current pay period, enter 0.00 in the This Pay Only column.

    After the payroll has been processed, Powerpay clears the This Pay Only field, and the value is taken again when it is requested on the payroll.

  5. Follow the same procedure for any other deductions and contributions.
  6. Click Save.

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 Customer Support 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 Customer Support 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 Customer Support 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.

See also

Related information

Most deductions are taken off the employee's gross taxable income. Some exceptions exist based on your payroll set up. For example, most pension-type and some union deductions reduce the employee's taxable income before tax is applied. If an employee has no pay during a pay period, no deductions are taken for that employee even if they are requested on the Deductions & Contributions Cycle page. An entry in the This Pay Only field however, forces a deduction; and the lack of earnings means that an "excess deduction" is created.

Contributions made by an employer can be a taxable benefit, in which case they are added to the employee's gross taxable income for the purposes of calculating tax, CPP/QPP, and possibly EI (and QPIP, if applicable). If an employee has no pay during a pay period, a contribution will not be recorded unless a one-time override is entered. If the contribution is a taxable benefit, the one-time entry may cause a deficiency for CPP/QPP and/or EI if not reviewed and adjusted. If the contribution amount displays an A next to the This Pay Only field, the amount will be ‘actioned’ by the Deductions & Contributions Cycle page instructions.

Entries made on the Rapid Entry — Regular Payment page and the Deductions & Contributions page affect each other as follows:

  • Any one-time dollar deductions and/or contributions entries originally entered in the Rapid Entry — Regular Payment page applicable to the employee's Regular Payment automatically display on the Deductions & Contributions page.
  • If a permanent or one-time dollar value data is entered on the payroll run on the Deductions & Contributions page, a label of Ded & Con appears in the corresponding field on the Rapid Entry — Regular Payment page and the deductions and contributions fields will no longer be editable on the Rapid Entry — Regular Payment page for this employee for that payroll run.

  • 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