Help Topic: Deductions
Q. What are deductions?
Deductions are associated with practitioners and staff and they represent the amount of money deducted from wages.
If you have an Enterprise plan, you can use deductions for income tax, union dues, health care plans etc. Deductions are 100% customizable by you.
Deductions can be a fixed amount or percentage of the wages for each wage payment.
To set up your deductions do the following:
- go to EMPLOYEES > TIMESHEETS
- click on the deductions icon (scissors) at the top-right of the page
Here you will find options for; ADD DEDUCTION GROUP, ADD DEDUCTION, ASSIGN PRACTITIONER, ASSIGN STAFF.
A deduction group is used when you want to have deductions for a sub-set of your work force. If you don't need multiple deduction types, you can add deductions and assign them to the DEFAULT GROUP.
After you have your deductions and assigned them to a group, you can assign practitioners and staff to the deductions. You don't have to assign practitioners or staff to deductions if you don't want to. For those practitioners and staff that are assigned to a deduction group, their wages will be modified to reflect the deductions.
Q. Remember this about deductions
Deductions are performed to all wage payments regardless of the interval (weekly, bi-weekly, monthly).
For fixed deductions the payment interval is very important!
- fixed health care monthly cost of $150.00
- you pay employees bi-weekly
- the fixed cost must be $75.00 NOT $150.00
When possible, use percentage deductions. If the cost is fixed, remember to factor in your payment interval.