v7 FreeBalance Help

Overview 

This section deals with the Deductions that are applied to an employee’s earnings.  There can be many types of Deductions that must be taken into account when processing an employee’s pay. Deduction Management consists of actions that serve to attribute one or multiple deductions to an employee for specified periods of time. Deductions can be created by Payroll Management and assigned to an employee through the screen 'Automatic Deductions Screen' or 'Deductions Per Period'.

Benefits

Deductions Management establishes a deductions database that serves for organizational processes. This allows upper management to conduct monitoring and analysis of all earnings that have any type of deduction coded in this section. Third party payments, such as Provincial and Federal Income Tax, can be processed more effectively and in a timelier manner with this database that monitors all deductions activity. The payments can be delivered with a higher degree of confidence that can help guarantee compliance to the payment schedule.

Workflow

The Deductions screen stores all deductions within an organization by code.  The user can type a deduction code in the appropriate field and then the Deduction function will display all available details regarding that particular deduction. The screen also allows the user to search deductions with a linked cost item, which is displayed at the bottom of the screen. Refer to Deduction for more information. 

The Income Tax Destination screen deals with the location each income tax deducted off an employee's earnings will be transferred to. This function ensures that third parties are paid on time on a regular schedule.

The Income Tax Type function is available for the user to view all the different income taxes that could be applied to payroll calculations. Management can select certain income tax types that are only applicable to certain employee earnings and assignments. All income tax types are coded for ease of access so they can be searched and modified without difficulty. Refer to Income Tax Type for more details.

The Pension Fund function deals with pension fund types available to employees. Each pension fund will have unique specifications which can be viewed in the Pension Fund screen. Pension Funds play a very important part in payroll management. Pension funds provide financial security for employees when they retire, that is why deductions from employee earnings must be managed effectively. Refer to Pension Fund for more details.