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How to create a new payroll deduction

Steps to add a new deduction for employees in Sage Payroll

M
Written by Mathew Shulman
Updated over 2 months ago

Create a Deduction

  1. Go to Settings.

  2. Select Pay components.

  3. Click Add pay component at the top right.

  4. Select Deductions from the drop down.

  5. Choose an option for Pay Component*:

    • Deduction (after-tax)

    • Garnishment

    • RRSP - non-perioidic (employee contribution)

    • RRSP (employee contribution)

    • Union dues

    • VRSP - Quebec (employee contribution)

  6. Give the component a name and a Pay statement description.

  7. Select Save.


Attach a deduction to a pay group or employee

To attach a deduction to a pay group:

  1. Go to Settings, Pay Groups.

  2. Select the pay group you want to attach the pay component to, then Edit Pay Group.

  3. Select Next, then Next again to open the Pay Template Detail options.

  4. Select Add New Deductions.

  5. Select the check box next to the new deduction, then Add.

  6. Verify the deduction appears in the list, then click Save.

When you attach a deduction to an employee, it will appear in all future pay runs for that employee, even if the pay group is changed.

To attach a deduction to an employee:

  1. From the Employee tab, select the employee you want to edit.

  2. Select Payslip Template Values.

  3. Select Add New Deductions.

  4. Select the check box next to the new pay component, then Add.

  5. Verify the pay component appears in the list, then click Save.

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