How to Create a Net Deduction Component

1.

Go to Payroll > Maintenance > Net Deduction Component.

2.

Click Add.

The Net Deduction Component screen opens.

3.

In the Name field, key in a unique name for the net deduction type. You can also optionally add a Description as to where this net deduction component is used.

4.

If you do not want the net deduction component to be available immediately, click Active to clear the tick. Otherwise skip this step.

5.

In the Payment Details section, add a Validity Date. This is the effective date of the pay codes and the deductions to be used for the net deduction component.

6.

In the Pay Type, you can define either which pay codes or pay code types that should be picked up to determine the attachable earnings. This selection will affect the options displayed in the Pay Codes / Pay Code Type field. If Pay Code is selected, you will be required to add the individual pay codes that should be included. If you add any new pay codes in the future, you will need to check whether they should be included in the net deduction component. If Pay Code Type is selected, this will include all pay codes of the pay code types selected (excluding those pay codes which are flagged as benefit in kind). This may be a better option as any new pay codes that have the same pay code type will automatically be included.

7.

In the Pay Codes / Pay Code Type field, click in the dropdown field and select the required items for the attachable pay. The selected items will then display in the field. If there are more than 5 items, the field will display the count of the items and can be seen when the dropdown arrow is selected.

8.

In the Deduction Codes field, select the deductions that should affect the net attachable pay. This list will also display Tax, National Insurance, Student Loan and Postgraduate Loan.

9.

Click Save.

The Net Deduction Component screen closes and a confirmation message displays to indicate that the net deduction component has been saved.