This article contains a list of all preset deduction components and a description of their functions. If none of the listed deductions suit your needs, you can create a custom one via Employees - Payroll Component Settings.

Setting up a bank account for deduction transfers

Setting up a wage deduction

Overview of deduction components

First, set up the bank account to which the deduction will be transferred (unless it is, for example, a shortage that will not be transferred anywhere). The bank account is configured in the HR menu under the Bank Details tab, in the same way as setting up a cash-on-delivery transfer for an employee:

For better clarity, you can use the Texts tab in the Description field to note what the bank account is for.

A recurring wage deduction can then also be set up in the HR menu under the Deductions tab, where you click the New button as usual:

Here you select the type of deduction from the code list described below. You then fill in the Deduct from and Deduct until dates, the payment method, the amount, and optionally the due date and the type of liability or internal document. Please note that if you fill in both a document type for a liability and an internal document, both of these documents will be created when liabilities are generated! Be careful to ensure that the given deduction is not posted twice to the same accounts.

The posting of a given deduction is configured on the liability type (Accounting - Document Types - Other Liability Types) or on the internal document type (Accounting - Document Types - Internal Document Types), which is then selected when setting up the deduction.

SAVINGS

LOANS

OVERPAYMENTS

GARNISHMENT

MEAL ALLOWANCE

DAMAGE COMPENSATION

ALIMONY

INSURANCE

PENSION CONTRIBUTION FIXED

PENSION CONTRIBUTION %

LIFE INS. CONTRIBUTION FIXED

PENSION INSURANCE

UNION AMOUNT

UNION %

LIFE INSURANCE

PERSONAL ACCOUNT

CALCULATED MEAL ALLOWANCE

GROSS WAGE DEDUCTION %

INFORMATIONAL DEDUCTION

RETIREMENT SAVINGS

If a portion of an employee's pay is being transferred to a savings account, this amount is deducted from the net income and does not affect health insurance, social insurance, or tax:

The loans component behaves similarly to savings — the deduction is also subtracted from net income and therefore does not affect health insurance, social insurance, or tax:

If an overpayment amount is being deducted from an employee, this amount will be subtracted from the net income and will not reduce health insurance, social insurance, or tax.

If an employee is subject to a garnishment order, select the Garnishment component and enter the amount to be deducted from the employee along with any other relevant details. Most fields, such as Deposit to, Deduction order, Remaining amount, etc., are informational, and if any of these values change, you must update them manually in this menu. Unfortunately, the system is not able to calculate garnishments automatically, so all data must be entered by the user. A detailed guide for entering garnishments can be found here.

Damage compensation can be entered in the HR menu, but if it concerns a one-time shortage, for example, it can also be entered in the Payroll Update menu under the Deductions tab. The compensation will be calculated the same way in both cases. The only difference is that if the deduction is entered in the payroll update, no special liability or internal document will be generated for it.

After filling in the details, you must recalculate the payroll.

Alimony is entered in the Amount field. It is deducted from net income.

This component represents insurance that the employee pays themselves. It is deducted from net income.

This component is used for pension insurance contributions paid by the employee themselves; it does not fall under non-taxable amounts.

This is a wage deduction for, for example, membership fee payments if the employee is a union member. In this case, a fixed contribution amount is entered. It is deducted from net income.

This component behaves similarly to Union Amount; the difference is that the deduction is entered as a percentage in the Percentage/Constant field. It is deducted from net income.

This is a deduction for the employee's life insurance. It is entered as a fixed amount. It is deducted from net income.

This component can be used when an employee wishes to have a deduction sent to a personal account. It is also deducted from net income.

For the meal allowance to be calculated based on days worked, the amount per one working day must be entered in the Percentage/Constant field.

The meal allowance deduction is subtracted from net income.

This deduction can be used when you want to deduct an amount equal to 1% of the employee's gross wage. In this case, it is not necessary to enter an amount — it is calculated automatically. It is then deducted from net income.

This deduction type is informational only. It may apply in cases where you have settled a matter with an employee in some way outside of an official wage deduction, but you need to include this on the payslip. The deduction will appear on the payslip but will not affect the employee's net pay: