DEDUCTIONS
These are the SDWorx-Pay deduction payroll items:
| Name | Engine Code |
| Deduction amount replacement | D010 – D900 |
| Deduction increase this pay-cycle only | D011 – D901 |
| Deduction decrease this pay-cycle only | D012 – D902 |
| Deduction replacement this pay-cycle only | D015 – D905 |
| Deduction eligibility indicator | D016 – D906 |
| Deduction arrears amount | D017 – D907 |
| Deduction to date replacement | D018 – D908 |
| Deduction balance replacement | D019 – D909 |
| Predetermined brought forward amount | D910 |
| Occasional deduction 1 | D920 |
| Occasional deduction 2 | D930 |
SDWorx-Pay lets you manage up to 90 deductions, numbered 01 to 90. For each employee you can manage deductions in the following ways:
- Set up or replace the value of the deduction permanently. Depending on how the deduction has been defined at company set-up time, you enter a cash amount, or a percentage of an earnings accumulator.
- Increase or decrease the value of the deduction with a cash amount, for this pay-cycle only.
- Replace the value of the deduction with a cash amount, for this pay-cycle only.
- Set the eligibility of the deduction. If the deduction has been defined at company setup time as a percentage deduction, setting the eligibility indicator enables the employee to take the deduction, and for the company-level percentage to be overridden at employee-level.
- Replace the deduction balance, with a cash amount only.
The form of deduction Engine Codes is DNNF, where NN is the deduction number, in the range 01 to 90, and F takes the values shown in the following table:
| Function | Value |
| Deduction amount replacement | 0 |
| Deduction increase this pay-cycle only | 1 |
| Deduction decrease this pay-cycle only | 2 |
| Deduction replacement this pay-cycle only | 5 |
| Deduction eligibility indicator | 6 |
| Deduction arrears amount | 7 |
| Deduction to date replacement | 8 |
| Deduction balance replacement | 9 |
In addition to managing individual deductions, SDWorx-Pay lets you:
- Replace the carried-forward value, which can be a negative net pay due to a part payment being greater than the total net pay (see Part payments). If negative pay has been specified at company set-up time as allowable, and negative net pay has been calculated, it will be shown on the payslip and payment lists as a negative amount, and a warning message will be printed on the Exception Report. Otherwise, the negative pay is rounded up to zero, and the negative value stored and carried forward.
Use Predetermined brought forward amount/D910 to replace the last period’s carried-forward amount.
- Set up to two occasional deductions for this pay-cycle only. These accept a cash amount only (together with the title of the deduction), which is deducted from the net pay for this pay-cycle. The title printed on payslips is taken from the title you enter with the amount. Use Occasional deduction 1/D920 and Occasional deduction 2/D930.
PERCENTAGE DEDUCTIONS
For each percentage-based deduction, the earnings accumulator (of which there are 20) is specified at company set-up time. The percentage value can also be specified at company set-up time or you can override it at employee level. Whichever method is used, you can replace, increase or decrease the deduction for this pay-cycle only, but with a cash amount only.
To enter a percentage value against a deduction, the eligibility indicator must have been set to allow the percentage deduction for the employee, using Deduction eligibility indicator/ D016 – D906. The percentage value you enter overrides the percentage value defined for this deduction at company set-up time.
DEDUCTION LIMITS
At company set-up time, a maximum value for each deduction can be defined (with a default value of £40,000). If the value of the deduction exceeds the maximum allowed, SDWorx-Pay prints the deduction value on the Exception Report (and identifies the deduction by number) but applies the deduction to the employee’s basic pay.
FREQUENCY AND PAY PERIODS
The number of pay periods used in the calculation of deductions can be defined in the following ways:
- At company set-up time, by specifying the frequency with which each deduction is taken. Each deduction can be taken monthly, periodically, weekly, quarterly, halfyearly and yearly.
- At company set-up time, by specifying a company calendar that determines when an infrequent deduction is to be taken.
- At employee level you can override the company-level number of periods using the employee-level Override number of pay periods for deductions/E830.
For each deduction, a calendar can be specified at company set-up time that determines the tax periods when balances are to be zeroised. For such deductions, SDWorx-Pay zeroises their balances automatically at the start of the pay period.
PART PAYMENTS
SDWorx-Pay allows you to pay the main part of an employee’s net pay into a bank or building society account, or by cash or cheque. You pay the remainder (a part payment) into another bank or building society account. The main payment is paid in accordance with the payment method specified at employee level using Pay method/ E043. The remainder must be paid through a single voluntary deduction that is defined at company set-up time as a part-payment deduction, and into an additional bank or building society account, specified at employee level.
The deduction operates in the same way as for normal deductions; for example, you can set up an increasing or decreasing balance.
If the part payment is greater than the total net pay, the action taken by SDWorx-Pay is specified at company set-up time as one of the following:
- All of the net pay is paid to the main account.
- Pay as much as possible of the part payment.
- Pay all of the part payment amount and carry forward the difference and recover it in the next pay period. The carried forward amount is held against Predetermined brought forward amount/D910.
The value in the payslip’s net pay box will be the value of the main payment. The part payment amount will be shown in the deductions column with an asterisk printed next to the name of the deduction. Account details for the part payment account can also be shown on the payslip.
RECOVERING A BALANCE
Whether or not any outstanding balance is to be deducted when an employee leaves is specified at company set-up time. If so, and recovering the balance results in a negative net pay, the net pay will be set to zero and the difference added to the balance carried forward.
The carried forward amount is held against Predetermined brought forward amount/ D910.
HOLIDAYS
Whether or not a deduction is calculated and taken during an employees’ holidays is specified at company set-up time.
SIGNED INPUT
You can enter positive or negative cash amounts against most of the deduction payroll items, by preceding the amount with a positive or negative sign. If you enter no sign, a positive amount is assumed. The exception is:
- Deduction eligibility indicator/D016 – D906 Note the effect of entering a negative amount against:
- Deduction increase/D011 – D901
- Deduction decrease/D012 – D902 is to reverse the effect; that is, an increase becomes a decrease, and a decrease becomes an increase.
Note:
- If you attempt to enter details for any deduction that is not set up at company level, SDWorx-Pay will reject the details and print INVALID – DEDUCTION NOT SETUP on the Input Error Report.
- The following reports and documents can be affected as a result of processing deductions:
- Exception Report
- Input Error Report
See
- EMPLOYEE for details of how to override the number of periods used to calculate deductions.
- EMPLOYEE for details of how to specify payment methods and the additional bank or building society accounts for part payments.
DEDUCTION PAYROLL ITEMS
| DEDUCTION AMOUNT REPLACEMENT | D010 – D900 |
Use D010 – D900 to set up or permanently replace the periodic amount of a deduction, by either a cash amount or percentage Format 1 ppppppppppp
Where ppppppppppp is the deduction amount, in pence, up to 11 numeric characters.
Example 1
Deduction 01 is set up as an annual Season Ticket at an annual cost of £2880.00, repayable to the company at £240.00 per month on a reducing balance.
D010 24000
You must set the deduction amount as shown in this example, and also set the opening deduction balance using Deduction balance replacement/D019.
Example 2
To loan the employee £2880.00, and set up a reducing balance of £2880.00 and monthly repayments of £240.00:
D010 24000
D015 -288000
The employee is paid £2880.00 and starts repayments next pay-cycle.
Format 2
nnnnnnn
Where nnnnnnn is the percentage to be used in place of the company level percentage (up to 7 numeric characters and to three decimal places).
Example 1
Deduction 05 is set up as a percentage calculated deduction to repay a house loan, with the percentage set at company-level, say 5% (and there is an existing employee-level percentage that is not to be used):
D050 0
The deduction is calculated as the percentage of the contents of the earnings accumulator specified for this deduction (or gross earnings for NI if one was not specified).
Example 2
The company level percentage of 5% for deduction 05 has been replaced (for this employee only) by 6%.
D050 6000
Note:
- You must use D010 – D900 to enter a permanent deduction.
- If the deduction has either a reducing or increasing balance, enter the opening balance using Deduction balance replacement/ D019 – D909.
- A negative deduction for this pay-cycle on a reducing balance deduction will increase net pay by the amount, and increase the reducing balance by the amount.
- Entering a percentage value:
- To enter a percentage value against a deduction, the deduction must have been defined at company set-up time as a percentage deduction, and the eligibility indicator must have been set to allow the percentage deduction for the employee. Use Deduction eligibility indicator/D016 – D906 to allow the percentage deduction for the employee. The percentage value you enter overrides the percentage value defined for this deduction at company set-up time.
- If the percentage value for the deduction entered at company set-up time is to be used (instead of being overridden at employee level), do not enter a percentage value against (D010-D900). If there is an existing employee-level percentage that you do not wish to use, enter 0 against the permanent percentage Engine Code (D010D900) to clear that existing employee-level percentage.
- If you enter a percentage greater than 7 numeric characters, SDWorx-Pay displays INVALID DEDUCTION PERCENTAGE.
- If the deduction is not defined at company set-up time as a percentage deduction and you attempt to enter a percentage, SDWorx-Pay treats the percentage value as a deduction amount.
- The frequency with which the deduction is made is defined at company set-up time, but can be overridden at employee level (using Override number of periods for deductions/E830).
- If an employee wishes to make a regular part payment into an account not used for the employee’s main payment, enter the value of the payment against the deduction defined at company set-up time as the deduction for part payments. The part payment amount will be shown in the payslip’s deductions column with an asterisk printed next to the name of the deduction.
An additional bank sort code, bank account number and building society reference number can be specified at employee level to receive the part payment. See Additional bank sort code/E124, Additional bank account number/E125 and Additional building society reference number/E126.
See
Predetermined carried forward amount/D910 for details of how SDWorx-Pay manages part payments that are greater than the total net pay and are to be paid. • If the value of the deduction exceeds the deduction’s validation limit defined at company set-up time, SDWorx-Pay displays a warning on the Exception Report, but deducts the calculated amount.
- Use Deduction increase/D011 – D901 or Deduction decrease/D012 – D902 to increase or decrease the deduction by a fixed amount for this pay-cycle only.
- Use Deduction replacement/D015 – D905 to replace the deduction amount for this pay-cycle only
| DEDUCTION INCREASE | D011 – D901 |
| DEDUCTION DECREASE | D012 – D902 |
.
Use D011 – D901 to increase a deduction, or D012 – D902 to decrease a deduction, by a cash amount, for this pay-cycle only.
Format ppppppppppp
Where ppppppppppp is the increase or decrease to the deduction, in pence, up to 11 numeric characters.
Example 1
The amount of deduction 01 is decreased by £5.55:
D012 555
Example 2
The amount of deduction 01 is increased permanently to £250.00 and by £5.55 for this pay-cycle only:
D010 25000 D011 555 Note:
- You can adjust deductions in this way for deductions that are either cash amounts or percentage calculated.
- If the deduction is defined at company set-up time as having a reducing balance, ensure that the balance (see Deduction balance replacement/D019 – D909) is sufficient to cover the deduction. If it is not, SDWorx-Pay takes the balance.
- Once a reducing balance is reduced to zero, SDWorx-Pay rejects any further deduction with the message REJECTED – DEDN NNNN – NO BALANCE TO DECREASE.
- Use Deduction amount or percentage replacement/D010 – D900 to set up or replace a permanent deduction amount.
- Use Deduction amount replacement/D015 – D905 to replace the deduction amount for this pay-cycle only.
- If the resulting deduction amount exceeds the deduction’s validation limit, SDWorx-Pay makes the deduction but prints a warning on the Exception Report.
- You can enter successive amounts against each of D011 – D901 and D012 – D902 in the same pay period. At the time of the pay-cycle, SDWorx-Pay totals the amounts against each, and increases or decreases the deduction accordingly.
| DEDUCTION REPLACEMENT | D015 – D905 |
Use D015 – D905 to replace the deduction amount, for this pay-cycle only.
Format ppppppppppp
Where ppppppppppp is the deduction amount, in pence, to 11 numeric characters.
Example 1
The new amount for deduction 01 is £17.50 for this pay-cycle only:
D015 1750
Example 2
The new amount for deduction 05 is £120.00, for this pay-cycle only (even though deduction 05 might be defined as a percentage calculated deduction). D055 12000 Note:
- You can replace a deduction amount for this pay-cycle only with cash amounts only (whether the deduction is a cash amount or percentage deduction).
- The new deduction amount can be a negative amount, in which case the deduction is added to the employee’s pay.
- Use Deduction increase/D011 – D901 and Deduction decrease/D012 – D902 to increase or decrease deduction amounts.
- If the deduction is defined at company set-up time as having a reducing balance, ensure that the balance (see Deduction balance replacement/D019 – D909) is sufficient to cover the deduction. If it is not, SDWorx-Pay takes the balance.
- Once a reducing balance is reduced to zero, SDWorx-Pay rejects any further deduction with the message REJECTED – DEDN NNNN – NO BALANCE TO DECREASE.
- If the new deduction exceeds the deduction’s validation limit, SDWorx-Pay makes the deduction but prints a warning on the Exception Report.
| DEDUCTION ELIGIBILITY INDICATOR | D016 – D906 |
Use D016 – D906 to specify whether or not an employee is eligible for an automatically taken deduction based on a percentage calculation.
Format
Y or N
Where:
- Y specifies that the employee is eligible for a percentage-based deduction.
- N specifies that the employee is not eligible for a percentage-based deduction. The default is N.
Example
The employee is eligible for deduction 05, which is a percentage-based deduction. The amount of deduction 05 will be calculated and taken automatically from the employee. D056 Y
Note:
- To enter a percentage value against a deduction (using Deduction amount or percentage replacement/D010 – D900 for an employee, the deduction must have been defined at company set-up time as a percentage deduction, and the eligibility indicator must have been set to allow the percentage deduction for the employee.
- If the eligibility indicator is set to Y, you can override the company-level percentage value using Deduction amount replacement/D010 – D900.
| DEDUCTION ARREARS AMOUNT | D017 – D907 |
Use D017 – D907 to replace the current deduction arrears amount (which SDWorx-Pay automatically calculates and holds against D017 – D907).
Format ppppppppppp
Where ppppppppppp is the new deduction arrears amount in pence up to 11 numeric characters.
Example
The current deduction arrears amount is replaced with £87.00:
D017 8700
| DEDUCTION TO DATE REPLACEMENT | D018 – D908 |
Use D018 – D908 to replace the current deduction to-date amount (which SDWorx-Pay automatically calculates and holds against D018 – D908).
Format ppppppppppp
Where ppppppppppp is the new deduction to-date amount in pence up to 11 numeric characters.
Example
The current deduction to-date amount is replaced with £87.00:
D017 8700
| DEDUCTION BALANCE REPLACEMENT | D019 – D909 |
Use D019 – D909 to set the opening increasing or reducing balance of a deduction, or replace the current balance.
Format ppppppppppp
Where ppppppppppp is the opening reducing balance, or the new balance, in pence, up to 11 numeric characters.
Example 1
To set the opening reducing balance against deduction 01 to £2880.00:
D019 288000
Example 2
To replace the current reducing balance against deduction 15, with a new balance of £77.50:
D159 7750
Note:
- Use Deduction amount or percentage replacement/D010 – D900 to set or replace the deduction amount.
- If the balance is less than the deduction amount, SDWorx-Pay deducts only the balance remaining.
- Once a reducing balance is reduced to zero, SDWorx-Pay rejects any further deduction replacement, with the message REJECTED – DEDN NNNN – NO BALANCE TO DECREASE.
- The amount paid to date on each deduction is set to zero on a date specified in the company set-up details.
| PREDETERMINED BROUGHT FORWARD AMOUNT | D910 |
Use D910 to enter a predetermined brought forward amount, which would have been negative net pay or round-up to be recovered from the last pay-cycle.
Format ppppppppppp
Where ppppppppppp is the amount to be brought forward from the last pay-cycle, in pence, up to 11 numeric characters.
Example
The amount to be brought forward from the last pay-cycle is £5.60:
D910 560
Note:
- The amount you enter against D910 replaces the last period’s carried forward amount.
- Engine Code D910 takes effect before payroll processing (in contrast to Engine Code Predetermined carried forward amount/A910, which takes effect after payroll processing).
- The brought forward amount could be the negative net pay resulting from either:
- a part payment being greater than the total net pay, and the company set-up details specifying that the part payment is to be paid in full, or
- a balance recovered when an employee leaves and the balance is greater than the total net pay.
- The brought forward amount or round-up from the last period is shown on the payslip and reported on the Pay Journal and Financial Summary
| OCCASIONAL DEDUCTION 1 | D920 |
| OCCASIONAL DEDUCTION 2 | D930 |
Use D920 and D930 to set occasional deductions 1 and 2. These are deductions that apply for this pay-cycle only.
Format
ttttttttppppppppppp Where
- tttttttt is the title of the occasional deduction, using 8 alphanumeric characters.
- ppppppppppp is the deduction amount, in pence, up to 11 numeric characters.
Example
The employee’s pay for this pay-cycle is reduced by £375.00 against a deduction titled CAR
LOAN:
D920 CAR LOAN37500
Note:
- You must specify the title with 8 characters, even though some can be spaces.
- You can enter sterling values only.
- You cannot adjust an occasional deduction.
- Occasional deductions apply to this pay period only.
- The title of the deduction is printed on the employee’s payslip.
Last updated 18/3/2023 (PSP)