Solution Properties
Solution ID:
200427112408229
Last Modified Date:
Thu Nov 21 15:42:23 UTC 2024
Taxonomy Path:
Case category//How do I...//setting up
Author:
[email protected]
Set up deductions
Description

To process payroll, you must set up payments and deductions. You can then process the hours and rates for each pay element.

Deductions are amounts taken from an employee’s gross or net pay, before they receive it.

Cause
Resolution

Set up a new deduction

It's easy to set up a new deduction within Sage 50 Payroll, let's run through the steps now:
  1. Click Company, then click Pay Elements.
  2. Click the Deductions tab, then click New.
  3. Check or enter the following information:
    Status
    • Fixed - If you choose Fixed, you can change the hours and rate in the employee's record, and change the hours in Enter Payments
    • Global - You can only change this payment within Pay Elements Settings
    • Variable - You can change the hours and rates within the employee's record and in Enter Payments
    Description Enter a description for your payment type, for example, Subscriptions or Overtime.
    Default Hours/No. You can set a default number of hours here or leave it as zero.
    Default Rate This is only available if the status is Fixed, Global or Variable.

    You can set a default rate here or leave it as zero.
  4. In the Deduct this value before calculating section, select or clear the check boxes as appropriate:

     

    • To set the deduction to deduct before (pre) tax or National Insurance (NI), select the checkboxes beside Tax and/or NI as required
    • To set the deduction to deduct after (post) tax or NI, clear the checkboxes beside Tax and/or National Insurance as required 
     
  5. Select or clear the following check boxes:
    Include Value in Minimum Wage calculation If you don't want to include the rate for this payment when calculating the national minimum wage (NMW) for employees, clear this check box.
    Include Hours/No in Minimum Wage calculation If you don't want to include the hours for this payment when calculating the minimum wage for employees, clear this check box.

    If the Include Rate in Minimum Wage calculation check box is clear, this check box is cleared and disabled automatically.
    Include for Holiday Accrual To include the payment when calculating holiday fund accrual, select this check box. Find out more in our guide to holiday funds.
    Auto Advance If you want the default value of this payment to be used automatically when advancing pay, select this check box.
    Include for Weekly Averages If you don't want to include this payment when calculating 12 or 13 week averages, clear this check box.
    Clear To Date at Year End If you want to clear the balance of this deduction at year end, select this check box. If you don't select this check box, the value of the deduction is kept for reporting purposes.
    Include in Timesheet Entry

    If you use Timesheet Entry to pay a group of employees and you don't want to include this payment, clear this check box.
  6. Click OK, then click Close.

 NOTE: If an employee's on a salary sacrifice pension, their contribution won't be reduced by a deduction. As a workaround you can reduce the employees gross pay or enter a negative payment. 

Add the deduction to your employees

You can now assign deductions to an employee or assign deductions to multiple employees.

Delete a deduction

To remove a deduction, follow the steps in our delete a pay element from an employee's record guide.

Steps to duplicate
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