Recurring Deductions

One of the biggest challenges facing payroll managers is managing fixed monthly deductions without oversights or manual calculation errors. This article explains the "recurring deduction" feature and its impact on operations.

What is a recurring deduction?

It's a feature that allows the system to automatically deduct a fixed amount from an employee's salary each month for a specified period. Instead of manually entering the deduction each time the payroll is generated, the system handles it for you.

How do you start using this feature? (Steps)

1. After defining the type of deductions through the "Salary Components" screen

2. The user can go to the employee's file, then navigate to the "Salaries and Financial Details" tab, and then select "Transactions."

3. Select "Recurring Deductions" and then add the deduction.

4. Choose the type of deduction and the amount to be deducted.

Specify the duration (Start & End Date): You can leave the end date open (e.g., phone allowance) as long as the employee is employed, or specify a fixed period (e.g., temporary housing allowance).

Note: You can stop the deduction even if you set an end date in March. You can manually intervene and stop the deduction in February if certain circumstances arise.

Note: You can only modify the deducted amount for this month if it differs from the previously recorded fixed amount.

Note: Recurring Deductions do not affect settlements (vacation settlement and end-of-service settlement).

Note: There is a review log where the system records "who made the modification" and "when," with the option to attach supporting documents to justify the deduction.