The Additions and Deductions process is used to adjust an employee’s pay in the HR system so the correct amount is exported to payroll.
Benefits of using additions and deductions
Using additions and deductions lets you:
Add extra payments to an employee’s basic pay for example allowances or TLRs.
Deduct money from an employee’s basic pay when needed.
Set start and end dates so the adjustment only applies for a specific period.
This is commonly used when something needs correcting or changing in payroll, such as updating an allowance or fixing a payment period. If an adjustment has already been sent to payroll, a new entry is usually added to stop the previous one and avoid overpayments or underpayments.
It also helps with reporting and audit trails, as these adjustments can be tracked and reviewed in payroll reports.
Addition or deduction process
📌Note: If the additions or deductions have already been sent to payroll and the dates are incorrect, we would recommend entering a new addition or deduction as adding the new entry would stop the previous one.
To place an addition or deduction on an employee follow the below steps:
Search for the employee using the organisation search
then click their profile.On the left, expand Payroll and select Pay.
In the bottom right, click either Add Addition to Basic Pay, or Add Deduction from Basic Pay.
Enter a Start date and End dates for the adjustment.
This can be set to a date prior to the current date of entry as long as payroll hasn't already been exported and it's prior to the cut-off date.
Use the item drop-down and select the necessary Pay Element.
Click Save.
To change an Addition, on the right of the row of the Addition, click Edit.