Set up and edit deductions

Set up a new deduction

1. Go to Company, then Pay Elements.
2. Go to the Deductions tab.
   • To create a new deduction, select New
   • To edit an existing deduction, select the relevant deduction then select Edit
3. Check or enter the following information:

   Status	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 you set the status to 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 checkboxes as appropriate:

    

   • To set the deduction to deduct before (pre) tax or 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 checkboxes:

   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 checkbox.
   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 checkbox. If the Include Rate in Minimum Wage calculation checkbox is clear, this checkbox is unavailable.
   Include for Holiday Accrual	To include the payment when calculating holiday fund accrual, select this checkbox. Find out more in a guide to holiday funds.
   Auto Advance	If you want to use the default value of this payment automatically when advancing pay, select this checkbox.
   Include for Weekly Averages	If you don't want to include this payment when calculating 12 or 13-week averages, clear this checkbox.
   Clear To Date at Year End	If you want to clear the balance of this deduction at year end, select this checkbox. If you don't select this checkbox, the program retains the value of the deduction 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 checkbox.

6. Click OK, then OK.

Add the deduction to your employees

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