Solution Properties
Solution ID:
260629144838073
Last Modified Date:
Mon Jun 29 15:17:16 UTC 2026
Taxonomy Path:
Case category//How do I...//processing
Author:
[email protected]
Create a deduction
Description
Cause
Resolution

To create a new deduction

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

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

▼A breakdown of the fields
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.

 

Attachment of earnings order (AEO)

There are additional options to help you set up an AEO in Sage Payroll.

Student and postgraduate loans

You can set up Student and Postgraduate loans by choosing them from the Deduction category dropdown.

 

Steps to duplicate
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