There are a number of ways you can apply additions and deductions to employees depending on if they are permanent (if you want the addition of deduction to be a part of every pay period or temporary (if you want to make a one off or occasional payment).
Adding in a temporary addition/deduction
If you want to add an addition/deduction to a single pay period to make a one off or occasional payment then you would do so when you ‘Open and Pay’ the employee for the pay period.
Either right click the employee’s name or go into the ‘Employee’ button along top of the software and select ‘Open & Pay Employee’ – on the open and pay screen click the ‘Change’ button and select either the ‘Additions’ or ‘Deductions’ tab along the top.
Adding in a permanent addition/deduction
If you add an addition/deduction to an employee so that it will apply to every pay period until you remove/change/stop the addition then you can right click the employees name in the list down the left and selecting ‘Employee Maintenance’ and the ‘Additions’ tab along the top.
Select ‘Add New Addition’ or ‘Add New Deduction’ > select the Addition/Deduction from the drop down menu you created earlier > and enter an amount to add/deduct.
Decrementing Deductions
Deductions can be decrementing. So that if the employee needs to pay back say £1,000 in total but they will pay it back in bits, so £50 a month. It will keep a track of the balance and stop taking the deduction once the ‘Starting Amount’ has been paid. For example: ‘Starting Amount: 1000.00’
‘Amount: 50’ – the balance on the end will decrease as the employee pays back the starting amount.
Adding Additions/Deductions in bulk
You can add in additions/deductions in bulk as well. This means you can add it to either a single employee, a division/department/location you have setup or the whole company using the option under ‘Company’ > ‘Bulk Amendments’ > ‘Create Employee Additions/Deductions’.
Employee selection: This will depend on if you have clicked one employee, a div/dep/loc or the company name before selecting ‘Create Employee Additions/Deductions’
Amendment: Select either ‘Addition’ or ‘Deduction’
Select the addition or deduction you want to add in (these must be created first otherwise they will not show in the drop down menu) Specify an ‘Amount’ to add/deduct and click ‘Process’.
*Any changes or notes will be displayed in a report after clicking ‘Process’.
Update Additions/Deductions in bulk
You can update existing additions/deductions in bulk as well. This means you can update either a single employee, a division/department/location you have setup or the whole company using the option under ‘Company’ > ‘Bulk Amendments’ > ‘Update Additions/Deductions’.
Employee selection: This will depend on if you have clicked one employee, a div/dep/loc or the company name before selecting ‘Create Employee
Additions/Deductions’
Amendment: Select either ‘Addition’ or ‘Deduction’ Select the addition or deduction you want to add in (these must be created first otherwise they will not show in the drop down menu)
Select from the 3 options on how you want to update the additions/deductions: - Increase or Decrease amount
- Percentage of Salary - Fix new amount
Pensions
The ‘Pensions’ section is used to create and setup Pensions, so that you can add them to employees to deduct pension when paying each pay period.
You can access this section by going into: ‘Company’ > ‘Pensions…’
Adding a New Pension Fund: Select the company from the
list.
Click ‘Add New’
Enter the ‘Pension Fund Name’ this will appear on all relevant reports.
Enter the ‘Scheme Reference’ as supplied by the pension provider. If the scheme reference is unknown, then leave this field blank. A GL Code can be assigned to this fund by selecting one from the dropdown list.
NOTE: The G/L code must have been created for it to appear in the list. See the GL Codes section of the manual for more details.
Not Contracted out, Personal or Stakeholder Scheme:
If a pension isn’t contracted out or if it is a personal or stakeholder pension scheme then select this box.
SCON (COSR) Number:
If the Pension fund is a COSR (Contracted Out Salary Related) pension then you will need to enter the ‘SCON (COSR)’ number which needs to be entered here. If there is no code number assigned to the fund, ensure that ‘None’ is selected.
Employer pays Employees NI Rebate:
If the employee receives an NI rebate then you can tick this box so that the Employer pays any NI rebate themselves.
Net Pay Arrangement (Taxable Pay is reduced by Pension Contribution):
Ticking this box means that the employees taxable pay is reduced by the pension amount so that they pay less in tax because the pension is taken before deductions for tax.
Auto Enrolment Scheme:
If the Pension is an Auto Enrolment Pension then tick this box.
Maximum Contribution:
If there is a maximum contribution for the pension you can tick the ‘Maximum Contribution Enabled’ tick box and you can set that limit below.
Gross Less Basic Rate:
This will calculate the ‘Gross Pensionable Pay’ less the ‘Basic Rate of Tax’ then you can tick this box. You can also specify the pension to calculate between the different NI band limits.
Note: This method only works when calculating the pension deduction on a percentage of the employee’s pensionable pay.
%age:
If the employer and employee contributions for the pension are calculated on a percentage then you can enter the percentage to be deducted in these boxes.
Assigning a Pension to an Employee
Once you have created the Pension fund, it can be added to an employee. This is done in the ‘Employee Maintenance’> ‘Pensions’ screen and is covered in more detail elsewhere in the manual under the Employee Maintenance section.