The Deduction Screen contains all the items that will be deducted from the employee's salary. This includes the Statutory deductions such as UIF, SDL and PAYE.  A company can also have its own Deduction types, of which the common ones we will discuss here. Up to 72 different Deductions can be defined.

NOTE: The Routing code DED may also be used to access an employee’s Deductions screen from any of the employee’s screens.

Explanation:

• Fixed Deductions

  The common Deduction Type lines will be discussed, taking into consideration the respective Deduction lines have been setup in the company. You can click on each type to expand and then collapse the information as you move along.

  The Fixed column is used for Deductions that are automatically calculated by the system, e.g. Tax and UIF, as well as Pension and Provident Fund contributions, if the percentages have been entered on the Basic Employee Information screen (IS) and Rounding if you are using this option. It is also used for Deductions to which the employee is linked on his/her Employee Linking screen (MC), in which case the amount can only be removed when the employee is unlinked from the Method of Calculation.

  If an amount is entered in the Fixed column, it will be a permanent Deduction. On Deduction lines that are defined as Not Calculated or Savings, entries can be made directly in the Fixed column. Such entries will remain in effect until they are cancelled manually.

  EXAMPLE: 

  An employee contributes R175.00 per month towards undercover parking on the company’s premises. (The Parking Deduction line is on line 16 in this company).

  Solution:

  Double-click to highlight the amount in the Fixed column, line 16 then type 175.00 and <Enter>, or type 161 in the Routing box to move to the Fixed column, line 16 then type 175.00 and <Enter>.

  

  NOTE: Note that an Amount with 999 Times has the same effect.

• Amount and Times Deductions

  The Amount and Times columns are used in conjunction. The Deduction amounts are entered in the Amount column and the Number of Times the Deduction must be made is entered in the Times column.

  • In the Amount column enter the amount that has to be deducted, e.g. 355.50.
  • In the Times column enter the number of periods for which the amount must be deducted,
  • e.g. 001 for a once-off Deduction or 012 if the Deduction must be deducted for 12 periods.
  • 999 Times indicates that the Deduction must occur in every Processing Period. Such a

  Deduction will remain in effect until you remove it.

  EXAMPLE 1: 

  An employee has taken an Advance of R450.00. The full amount must be deducted from his  Salary/Wage in this period.

  (The Advance Deduction line is on line 12 in this company).

  Solution:

  Double-click in the Amount column on line 12 so that it is highlighted, then type 450.00, press <Enter> and type 001 as the Number of Times to deduct in the Times column. <Enter> to return to the Routing box, or type 122 in the Routing box at the bottom of the screen then type 450.00, press <Enter> and type 001 as the Number of Times to deduct in the Times column. <Enter> to return to the Routing box.

  

  EXAMPLE 2: 

  An employee failed to tell you that his wife had a baby three months ago. He has arranged with you to take off the additional Medical Aid contribution that is required at R75.00 during this Pay Period and for the next two Pay Periods. This is over and above his new contribution of R415.50 which is calculated according to the Method of Calculation to which he is linked.

  (The Medical Aid Deduction line is on line 08 in this company).

  Solution:

  Double-click in the Amount column on the Medical Aid Line 05, then type 75.00 and press <Enter> to move to the Times column, type 003 as the Number of Times to deduct and press <Enter>, or in the Routing box, type 052 to move to the Amount column on the Medical Aid Line, then type 75.00, press <Enter> to move to the Times column, type 003 as the Number of Times to deduct and press <Enter>.

  

• Amount and Balance Deductions

  The Amount and Balance columns are used in conjunction. The amounts are entered in the Amount column and the starting balance are entered in the Balance column.

  The balances displayed on screen, are the balances at the beginning of the Pay Period. The Current Pay Period’s Deduction will only reduce the balance when moving to the following Pay Period. The balance will reduce automatically from one Pay Period to the next according to the amount that was deducted. If the balance is not exactly divisible by the amount, the last Deduction will be less than the previous ones, to bring the balance to zero.

  If there is an amount in the Fixed column and an amount in the Amount column, BOTH will be deducted from the Balance during the roll-over to the next Period.

  Loans

  The Balance column is used to enter a starting balance and always shows the balance at the beginning of the Pay Period. This balance will be reduced by the amount deducted in each Processing Period.

  EXAMPLE: 

  An employee has a Loan of R1985.00 from the company. He is to repay it at R75.00 per period. (The Loan Deduction is on line 11 in this company).

  Solution:

  Double-click in the Amount column on the Loan line, type 75.00 and <Enter>, the cursor will move to the Balance column, type 1985.00 and <Enter> or in the Routing box, type 112 to move to the Amount column in line 11, type 75.00 and <Enter>, the cursor will move to the Balance column, type 1985.00 and <Enter> to return to the Routing box.

  

  Outstanding Loan balances can be printed on the Payslip and will reflect the correct balance - the amount owing less the current Deduction. Interest can be calculated on the outstanding Loan balance as well, should you require this.

  Savings

  Savings can be deducted from an employee’s Earnings and deposited on his/her behalf. The system will show the accumulated total balance of the savings amount.

  If a Deduction has been specified as a Savings Type of Deduction, the balance does not include the Current Period’s Deduction therefore ensure that you do not include a balance amount in the first period that an employee starts saving. If, however, you do a savings take-on, the balance carried forward from your previous system must be entered in the Balance column.

  The Savings balance will automatically increase from one Pay Period to the next by the amount that was deducted. The Savings Deduction will prompt you to enter the number of periods that the savings should be deducted.

  EXAMPLE: 

  An employee wants to save R300.00 per month. He has decided to start saving as from this month, until further notice.

  (The Savings Deduction is on line 14 in this company).

  Solution:

  Double-click in the Amount column on the Savings line, type 300.00 and <Enter>, the cursor will move to the Times column, type 999 and <Enter>. Do not enter an amount in the balance column, as the balance will only start  accumulating during the roll-over to the next Processing Period, or in the Routing box on the Deduction screen type 142 to move to the Amount column in line 14, type 300.00 and <Enter>, the cursor will move to the Times column, type 999 and <Enter>. Do not enter an amount in the Balance column.

  

• Other Deductions with Balances

  he reducing balance facility can be used for any Type of Deduction, not only for Loans.

  EXAMPLE: 

  An employee has a balance of R1622.20 outstanding for tools that he bought through the company. He has agreed to pay back R40.00 a month from this amount.

  (The Tools Deduction line is on line 22 in this company).

  Solution:

  Double-click in the Amount Column on line 22, type 40.00 and <Enter>, the cursor will move to the Times column, <Enter> to move to the Balance column, then type 1622.20 and <Enter>, or in the Routing box type 222 to move to the Amount column line 22, type 40.00 and <Enter>, the cursor will move to the Times column, <Enter> to move to the balance column, then type 1622.20 and <Enter>.

  

  NOTE: Balances must be entered on the Payslip screen as if the Current Period’s Deduction has not been deducted yet. However, on the employee’s printed Payslip, the balance will show as the correct amount, including the Current Period’s Deduction.

• Deductions with a Date

  If the employee is linked to methods for Medical Aid, Pension or Provident Fund, the Start Date must be specified on the Basic Employee Information screen (IS). If no date is specified, no amount will be calculated on the Payslip screen. Pension and Provident Fund percentages should be specified in a method rather than on the IS screen. The reason for this is that if there is a percentage increase of the Pension or Provident Fund contribution, you need only change the percentages in the relevant methods and the changes will automatically be applicable to all employees who are linked to that method. If, however, the percentages were entered on the Information screen, you will have to change each employee’s screen individually

• External Payment Deductions with subscreens

  A Deduction that has been defined as an External Payment enables you to enter amounts on the Payslip screen for payments to External Institutions. The following External Payment options are available for selection on the Deduction Definition screen (DD) in VIP Premier: Bonds, Extra-Payments, Finance Houses, Garnishees, Insurances, Extra or Extra-zeroed, Retirement Annuities and Income Replacement Policies.

  A subscreen will appear if you select a Deduction that has been defined as an External Payment. On this subscreen you can specify the Institution, the Reference Number, the amount and the number of times that the Deduction must be made or the balance that is still owing, in which case the system will automatically deduct the amount until the balance is zero. In a weekly/bi-weekly company, you may also select the week(s)/period(s) in which that Deduction is applicable. For each subscreen, up to 15 different External Payment Institutions may be entered.

  In addition, you may use the Deduction Type Subscreen on as many Deduction lines as you require, and, on each of these screens there are 15 lines available for entering the detail of the different External Payment Institutions, as well.

  EXAMPLE:  Garnishee Orders

  Double-click in the Amount column on the required External Payment line. A subscreen will be displayed where the necessary input may be done:

  

  

  

  The Amount and Times columns can be used when an adjustment is to be made to the fixed Deduction on the subscreen.

   

  During the roll-over to the next period, the Balance will be reduced by the sum of the amounts in the Fixed column and in the Amount column.

   

• Totals at the bottom of the subscreen

  The Total of the amounts in the Fixed column plus the Amount column, and the Total of amounts in the Balance column is shown at the bottom of the subscreen:

  

  Total R362.50

  This is the Total amount that must be deducted this Period (362.50), i.e. all the values that are displayed in the Fixed column (125.50 + 140.00) plus all the values that are displayed in the Amount column (12.00 + 85.00).

  Total R1250

  This is the Total of the balances entered on the sub-screen. This Total will be displayed in the Balance column on the Payslip screen. See example below.

  On the Payslip screen, these Totals are shown in the Amount and Balance columns respectively. Times will always be 999.

  

  In Weekly/bi-weekly companies you may specify the week/period in which the Deduction is to be effective. You enter the amount in the Value column, and specify when the amount is to be effective in the Effective column. When the Deduction becomes effective, the value will be displayed in the Fixed column. For the weeks/periods that the Deduction is not effective, the Fixed column will display no value, i.e. it will be blank.