Payroll supports different deduction types, organised into deduction categories.

When you create a new deduction, you base it on one of these deduction types. This determines whether it’s a net deduction or a gross deduction.

Deduction Category	Deduction Type	Net or Gross?
Pensions	Stakeholder Pension	Net
Attachment of Earnings Orders	1971 Priority AEO (Maintenance)	Net
Attachment of Earnings Orders	1971 Priority AEO (Court Fines)	Net
Attachment of Earnings Orders	Court Fines (Post April 2004)	Net
Attachment of Earnings Orders	1971 Non-Priority AEO (Civil Debts)	Net
Attachment of Earnings Orders	Child Support DEO	Net
Attachment of Earnings Orders	Council Tax (pre-Oct 1998)	Net
Attachment of Earnings Orders	Council Tax (October 1998 - March 2007)	Net
Attachment of Earnings Orders	Council Tax (post March 2007)	Net
Attachment of Earnings Orders	Current Maintenance Arrest	Net
Attachment of Earnings Orders	West Council Tax (Post April 2022)	Net
Attachment of Earnings Orders	Scottish Earnings Arrest	Net
Student Loans	Student Loan (Plan 1)	Net
Student Loans	Student Loan (Plan 2)	Net
Student Loans	Postgraduate Loan (PGL)	Net
Student Loans	Student Loan (Plan 4)	Net
Gross Deductions	Salary Reduction	Gross
Gross Deductions	Other Gross Deduction	Gross
Net Deductions	Christmas Club	Net
Net Deductions	Social Club	Net
Net Deductions	Other Net Deduction	Net

1. Select Settings from the menu bar
2. Then select Payments & Deductions.
3. Select the Deductions tab, then select Create New Deduction.
4. Enter the details of the new deduction.
5. Select Save.

Item	Description
Deduction Category	See Deduction Types Available section above.
Deduction Type	See Deduction Types Available section above.
Name	The name of the deduction. This appears on payslips. You can accept the default name or enter your own.
Description	Text to explain the purpose of the deduction. You can accept the default description or enter your own.
Employee’s Standard Contribution	This is only available for Pension deductions. The employee’s pension contribution amount or percentage. You can enter a fixed amount or percentage contribution.
Employer’s Standard Contribution	This is only available for pension deductions. If applicable, enter your company's standard pension contribution. This can be a fixed amount or a percentage of pay.

The deduction now appears in the deduction list in the Deductions tab. Add it to your employees in the next payment run.

1. Select Settings from the menu bar.
2. Select Payments & Deductions.
3. Select the Deductions tab.
4. Select Edit on the required deduction.
5. Change as needed.

1. Select Pay Runs from the menu bar.
2. Run your payroll to the PAY screen.
3. Select the required employee.
4. In the Deductions section, select the value box of the deduction and change it to the required amount.

Payroll will remember this deduction value. The deduction will remain in the employee record until you change it, or delete it.

You can’t delete deductions in Payroll. You can remove deductions from an employee when you’re processing an employee’s pay details. To do this, select the discard button next to the relevant deduction.