Recurring deductions are regular amounts taken from an employee's net pay for various purposes.
Common recurring deductions
Payments to third parties
Staff accounts owed to your company directly
Union fees
Rent or loan repayments
Court orders
Create the agency first
In order to create a recurring deduction, there needs to be an agency to have the amount paid to. Some common agencies already exist by default, create any additional required
Navigate to the Codes screen
Select Agencies and Super funds
Click the + button to add a new agency
Enter Title as the name of the agency (it could be your company name)
Set the classification to Deduction
Set Calculation to the desired method
Enter the bank account details under the Payee details tab, if the amounts will be paid to a third party. If the agency is your company itself and only want to deduct the amount from the pay, ignore this step
Tick Individual payment transactions, if you want separate transactions per employee (with reference details) instead of one lump sum payment. - Ignore this step if you ignored step 7.
Click Save.
Setting up a recurring deduction
Navigate to the Staff screen.
Select the employee.
Open the Payments tab (this appears as "recurring deduct" in the payrun screen).
Click the + button to add a new deduction.
Configure the deduction details.
Deduction configuration options
Pay to
Select the agency the deduction will be paid to.
This determines where the payment goes.
Rate/Amount
Set Rate/Amount the deduction will be totaled at per pay
Priority
Compulsory - Amount will be deducted in full even if it creates a negative NET pay
Protect net pay - Will only deduct as much NET pay as is available
Zero if unpayable - Will only deduct if it can take the whole amount
Particulars, Code & Reference
Identifying details which are included in the bank transaction
Not needed if the payment is not made to a bank account
Reducing balance
Tick the box if there is a total balance to pay off over multiple pay periods
Both Original balance & Balance owing should be the same value
If Balance owing is "0.00", no funds will be deducted
Do not tick box if this is a regular deduction without a balance
Inactive
Tick this box if you need to:
Temporarily postpone deductions
The deduction is no longer needed.
Important notes
Recurring deductions are taken from NET pay (after tax has been calculated), not gross pay.
These deductions will appear automatically in each pay run until you remove or modify them.
It is always better to not delete a recurring deduction once it has been used to deduct amounts from an employee's wages, as it is easier to audit at a later date with the record still existing. If you need to stop deductions for whatever reason, use the inactive box instead.