Defaulting of Gross or Net Deduction from Deduction Header

Description

Deduction headers have been enhanced so that the setting of the Deduct From field on a payee deduction, which determines if a deduction is taken from gross or net earnings, is now defaulted from the deduction header. The deduction header now also determines if the option that is selected in the Deduct From field on a payee deduction can be changed from the default option that is defined by the deduction header.

Benefits

This enhancement facilitates quicker and easier configuration of payee deductions and prevents configuration errors at the payee deduction level by defaulting more options from the deduction header down to the payee deduction level.

The ability to enforce, at the deduction header level, whether a deduction is deducted from gross or net earnings prevents deductions from being configured incorrectly at the payee level in cases where a specific deduction type must only be deducted from gross or net earnings.

Configuration

New fields have been added to deduction headers, which are configured under Payroll > Maintenance > Deduction Header, to set the default option for the Deduct From field at the payee level and to determine if the default setting can be overridden at the payee deduction level. These fields are highlighted in the example below.

Open

On upgrading, the Deduct From field on all existing deduction headers defaults to the Net option and the Allow to override the deduct from on payee field is ticked on by default. That supports the ability for existing payee deductions that are linked to an existing deduction header to continue to be deducted from either gross or net earnings.

For more information about configuring deduction headers, see Deduction Header Maintenance.