New pay components or allowances are created in Additions and Deductions. Additions and Deductions fall into one of five categories:
An addition before tax, added to the gross pay, before the calculation of tax.
A deduction before tax, subtracted from the gross pay, before the calculation of tax.
An addition after tax, added to the net pay, after the calculation of tax.
A deduction after tax, subtracted from the net pay, after the calculation of tax.
A tax adjustment
To access Additions and Deductions from the system tree, select Payroll, Maintenance, General, Additions and Deductions. From here, you can add, edit and delete Additions and Deductions. You can also search for codes and add notes to selected Additions and Deductions categories.
There are some fields that you cannot change once the addition or deduction has been created. These will be greyed out when editing. They include code, category and type. If the category or type is incorrect, you will need to create a new addition or deduction.
Each addition or deduction is itemised on the employee's pay advice and recorded as an individual item within the payroll record. Therefore, the additions and deductions lists used to process pays must be finalised before a pay run commences.
Download the document below for detailed information on each of the Addition and Deduction fields: