Add, Edit or Delete a Deduction (NZ)

Overview

If you need to deduct amounts from employees in Payroll (eg Child Support or KiwiSaver) they first need to be configured in Config > Payroll > Deductions. 

Deductions are region-specific, so if you have more than one region enabled in your portal, you will need to set the region when a deduction is created. 

Add a Deduction

1. Go to Config > Payroll > Deductions > Add New Deduction.
2. Select New Zealand as the Region > Create New Pay Item. (This popup window won’t appear if you only have one region enabled in your portal.)
3. Enter the relevant details for the deduction item.
4. Click Save.

Refer to the table below for more information on the settings you will need to configure.

Name	The name of the deduction item as it will appear on employee pay advices
Calculation Type	The Calculation Type that you select for the deduction item determines how the deduction amount is calculated. There are two Calculation Types: Fixed Value will deduct a specified dollar value when the deduction is added to an employee pay Percentage (%) will calculate a specified percentage of either gross or net wages when the deduction is added to an employee’s pay. You will also be able to specify which pay items are included in the percentage calculation using the ‘applies to’ checkboxes.  To make the deduction available to assign to users, ensure that the Enabled checkbox is ticked. You will also need to enter a Start Date. The Finish Date is optional.
Deduction Limit	Each deduction item you create needs to be set with a Deduction Limit. There are three options: Unlimited does not apply a limit, and when the deduction is assigned to an employee, it will continue to be deducted without restriction.  Amount Limit will set a maximum value for the deduction. When the deduction is assigned to an employee, amounts will only be deducted until the total amount deducted reaches the Amount Limit. Pay Periods allows you to set a number of pay periods for which the deduction will apply. When the deduction is assigned to an employee, the amount will only be deducted for the fixed number of pay periods set here. Important: Once a deduction item is saved, you will not be able to change the Deduction Limit setting. You can set multiple rates, percentages or limits within the deduction.
Deduction Type	Select from Standard, SLBOR, SLCIR, Child Support, KiwiSaver or PAYE Tax. Deductions are considered Standard in Astute if they aren’t categorised as KiwiSaver, Child Support or additional PAYE deductions.
Protected Earnings	A minimum net amount that an employee must earn before the deduction will apply. This can be set as a percentage or fixed dollar value.
Date range applies to	Pay Period will include the deduction in the pay period that includes the Start Date that has been setPay Date will include the deduction in the first pay run with a pay date that falls after the Start Date that has been set
Recover on Termination	If a deduction item is configured with a Deduction Limits setting of either Amount Limits or Pay Periods, you can determine whether to recover any outstanding deduction amounts on termination by ticking this checkbox.
GL Export Details	Set the Expense and Liability account codes for the deduction item.
EMS Settings	Specifies how the pay data will be identified by the system: Not Applicable, Child Support, KiwiSaver, Student Loan or PAYE
Direct Credit Details	Ticking the Direct Credit Payment checkbox includes the deduction in a Deduction Bank File Provide the bank/EFT details that deduction amounts should be paid to, including Bank Account Name, BSB, Account Number and Suffix This section will only appear if the Deduction Bank File functionality has been enabled in your portal

Edit a Deduction Item

To edit a deduction item:

1. Go to Config > Payroll > Deductions.
2. Click the name of the deduction item to open the settings page.
3. Update any fields you require and click Save.

Important: Once a deduction item has been used in payroll, the Calculation Type and Payment Section fields will lock and cannot be edited.

The Start Date and the Percentage or Fixed Amount set for a deduction rate will be read-only once the deduction item has been assigned to an employee or contractor. 

Delete a Deduction Item

A contribution item can be deleted if it hasn’t been linked to an employee profile or used in payroll yet. 

To delete a contribution item:

1. Go to Config > Payroll > Contributions.

2. Tick the checkbox to the left of a contribution name.

3. Click ‘With selected contribution…’ > Delete.

Re-ordering Deductions

The Config > Payroll > Deductions screen includes a column that lists the Processing Order for deductions. This means that if more than one deduction is assigned to a pay, they will be processed in numerical order from 1 onwards.

The deduction items in a portal can be ordered using ‘Re-order Deductions.

1. Go to Config > Payroll > Deductions.
2. Click ‘Re-order Deductions'. If you have more than one region enabled in your portal, you will be prompted to select which region you would like to reorder in a popup window.
3. Click on each deduction that needs to be reordered and drag it into position. The deduction at the top of the list should be the deduction you would like to be processed first.
4. Click Save.