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 to get started with this feature? (Steps)

1. Configure your components: Click on Settings

2. Select "Salary Components"

3- You can now define new types of deductions and classify them as "monthly deductions" instead of "one-time deductions." This makes them appear as a permanent option in employee files.

4. Employee-by-Employer Allocation: This feature offers high flexibility; you can access each employee's file and specify:

Type of deduction.

Amount to be deducted.

Start & End Date: You can leave the end date open (e.g., phone allowance) as long as the employee is employed, or set it for a specific 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: 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.