Set up employee 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. 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.

Deductions and Contributions displayed in bold text will be applied in the current pay period.

Deductions and contribution overrides can be entered in the Rapid Entry page if the Deduction or Contribution has been selected to be included on the Rapid Entry page. If you are setting up a new employee, or if there are changes to be made on an exception basis to an existing employee, you must use the Deductions & Contributions page. After entering data on an employee's Deductions & 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.

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. 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.

Tip: When you set up your company-level data, you created Deduction & Contribution 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.