Available for the following plans: Employment Unlimited
Available for the following user access levels: Admin
A payroll deduction happens when an employer takes money out of an employee's pay before they get their pay cheque.
The Deduction Categories feature lets you create a new deduction category and add details like the category name, external ID, deduction type, and classification. You can also use this feature to update any existing information or remove a record that you no longer need.
Getting started
Add a deduction category
- Click on Settings ( ).
- In the Payroll section, click on Deduction Categories.
- Click the + Add Deduction category button.
- Complete the following fields:
- Deduction Category Type: You can choose from the ones available (Union Dues or Charitable Donation) or create a custom one.
- Enter the Deduction Category Name
- Type: If you're creating a custom deduction category, you'll need to select whether it should be set up as pre or post tax.
-
T4 Box (Optional)
5. Click the Submit button.
Your new expense category has been added to Employment Hero.
Manage data
Edit a deduction category
- Click on Settings ( ).
- In the Payroll section, click on Deduction Categories.
- In the Actions column of the deduction category that needs to be edited, click the Edit button.
- In the Edit deduction category form, enter the required changes.
- Click the Submit button.
Your changes have been saved and will be shown immediately.
Explore related content
- Set up Income Types: This article explains how to set up income types in Employment Hero.
- Set up Benefits: This article explains how to set up a custom benefit and add your employees