Select Payees to Receive Deduction Payments

This section describes how to configure the application to apply deductions to certain employees. This configuration is independent from the process of determining the values that are used in calculating the deduction, such as per pay group, payee, or employee. Before Dayforce can apply a deduction to an employee, that employee must elect to receive it.

For example, if you configured a deduction for the cost of gym memberships, only the employees who have joined the gym should have the deduction applied. To record which employees have joined, configure a payroll election in the appropriate employee records in People, using the following steps.

Note: If you provided an employee-specific value or override for a deduction, then the employee was already elected. No further configuration is required.

To elect an employee to have a deduction applied:

1. Go to Payroll Setup > Earnings and Deductions.
2. Click the Deductions tab.
3. In the General sub-tab, select the Allow Payee checkbox.
4. Click the Payees tab.
5. In the Payee Category drop-down list, select a category to filter the list of third-party payees.
6. Click Add.
7. In the Payee drop-down list, select the payee that you want Dayforce to apply payment to. In this drop-down list, you can see that the reference code of the payee follows the payee short name, for example, AB Non-Reg SV EE - ATNJ.
8. Select an Effective From date when the deduction is applied from the calendar.
9. Important: The application does not prorate deductions when it applies them to employee's wages. In other words, if a deduction is active for a portion of a pay period, even for just one day, the entire amount of the deduction is applied to the employee's wages. Typically, you should specify an effective date range that aligns with the start of the employee's pay period.
9. (Optional) Specify an effective end date in the Effective To field. Dayforce only applies the deduction during the effective date range, as specified in the Effective From and Effective To fields.
10. By default, the Effective To field is blank, and the value does not expire.
10. Click Save.