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Set a reducing balance deduction and assign it to an employee

Created on  | Last modified on 

Summary

A deduction can have an accumulating balance, a reducing balance or have no balance associated to it at all. If you need to manage deduction amounts that are periodically reduced to zero, such as a bike to work scheme, you must set up a reducing balance deduction.

Resolution

Set up a reducing balance deduction
  1. On the menu bar, click Company/Payroll then click Deductions.
  2. Click New, then complete the following information:
    Title Enter a name for the deduction.
    Type Click Gross.
    Sub-Type Click Standard.
    Multiply by the number of holiday periods If you want the value of this deduction to adjust according to the number of holiday periods you enter on an employee's timesheet, select this check box.

    This option is only available in weekly and fortnightly payrolls.
    Balance Type Click Reducing balance.
  3. Click Save then click Close.
Assign a reducing balance deduction to an employee

Before you can start using the reducing balance deduction on an employee's timesheet, you must enter the total balance of the deduction itself within the relevant employee's record.

  1. On the menu bar, click Processing then click Employee Details.
  2. Next to the Surname box, click browse and click the relevant employee.
  3. Click the Deductions tab.
  4. Locate the relevant deduction and enter the following information:
    Std. E'e Amt Enter the amount you want to deduct from the employee each pay period.
    Balance E'e Enter the overall total value of the deduction.
  5. Click Save.
  6. Repeat steps 2 to 5 for each employee you want to assign the reducing balance deduction to, then click Cancel.

You've now assigned a reducing balance deduction to this employee. In each subsequent pay period, when you process the employee's pay details, the deduction balance gradually reduces. When it reaches zero, the deduction stops automatically.