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If a payee has been overpaid and the funds need to be deducted from a future pay, a deduction needs to be setup in the payee record.

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 Below are the steps required to setup an overpayment deduction.

Instructions

PART ONE – Deduction Header

A deduction header must be created before a deduction can be setup in the payee record.  If a deduction header already exits, go to Part Two.

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PART TWO – Payee Deduction

A Standard deduction header must be created before a payee deduction can be added.

1. Go to Payroll > Payee
2. Search for the relevant Payee and open their record
3. Click the Deductions tab
4. Click the + symbol to add a new deduction
5. Enter the following details:
   1. Validity Start Date
   2. Deduction – select the Deduction Header created in Part One
   3. Rate Type– this will generally be Fixed. If Percent is selected, either Gross or Net will need to be selected in the Calculate On
   4. Rate Value– the percentage or fixed amount that is to be deducted
   5. Deduct From– if the overpayment has been corrected in an Adjustment batch, select Net otherwise select Gross
6. If it’s a Net deduction and it is to be net protected (ie a certain amount of their net pay must be left after the deduction), click the Net Protected tab, select the option then select the Protected Type and enter the Protected Rate
7. If the deduction rate isn’t for the full amount, click the Rolling Deduction tab, select the option and in Total Amount enter the total amount that need to be recovered
8. Click OK, then Save the Payee record

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