Add company pay element - deduction

To set up a new company pay element for additional deductions, go to Company Setup > Pay Elements > click on + Add pay element in the top right corner.

Tick the Is deduction box

• ID - A unique identifier for the pay element. Used to identify when importing payments via a CSV file or the API. This value cannot be changed.
• Order - The order to render the pay element in relation to other pay elements.
• Name - Display name for the element for use by payroll administrators.
• Is deduction - Should be ticked for this element to be added to a payslip as a deduction.
• Calculation type - for a deduction this can only be set to an Amount

Default Values

• Description - the element description that will appear on the employees' payslips
• Amount - the default amount for this element
• Cost code - the default cost code for this element

Taxation

• Tax - This element is included the taxable gross.
• National Insurance - This element is included the gross pay for National Insurance.
• Pension - This element is included the pensionable gross.
• National Insurance Class 1A - Class 1A National Insurance is payable on this element.
• Allow tax customisation - If set, taxable behaviour can be overridden by the user when creating payments.

Advanced behaviour

• Allow recurring payments - If true the element can be set as repeating when it is added to a payslip.

Average holiday pay behaviour

• Include - this payment will be added to the total earnings for AHP.
• Exclude - this payment will not be added to the total earnings for AHP.
• Veto - this indicates that the pay period in which this payment is made does not represent a normal earnings period and therefore the entire earnings period should be excluded from the AHP calculation. This is usually used for SSP or statutory parental pay.

The manually added deduction element will not have the (system default) tag, and will be deletable.

The newly created element will now be available to select in the employee's Pay tab > Pay elements section where you can add it as a date effective deduction and in the pay run where you can use it as a one off deduction.