Manage deductions
Description

Deductions are amounts taken from the employee’s pay before they receive it. You can take them from an employee’s gross or net pay.

NOTE:

You don't manually set up a PAYE or NI deduction

Cause
Resolution

Deduction types

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 types available
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

To create a new deduction

You can create as many deductions as you need. Once done, you can add it to your employees during a pay run.

To see how to do this, read Create a deduction.


Edit a deduction 

There are limitations to editing a deduction, once it's created. If necessary, you can create a new one to replace the incorrectly set up one.

To edit the monetary value of a deduction, you must select the relevant employee when processing the pay run.

NOTE:

You can't edit PAYE and NI. These calculate based on the employee's details and the set up of other payments and deductions.

 


Delete a deduction

You can’t delete deductions entirely in Payroll, but you can remove deductions from an employee when you’re processing the pay run.

Steps to duplicate
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