Sub-Tabs of the Deductions Tab

Selecting this checkbox loads the Payees tab and the Payee Category drop-down list. You must select one payee only as the default for each effective date range. Configures Dayforce so that the deduction is sent to a payee that you designate. See Third Party Payee Configuration.

The category that you select filters the list of payees that you can select as part of the deduction definition. For example, if you select Benefit in the Payee Category drop-down list, Dayforce only shows payees that are configured with the Benefit category. You can configure additional payee categories to classify payees and organize them together in similar groups.

Select this checkbox to include deduction details in the Deductions section of the employee total compensation statement.

Select the Allow Arrears checkbox to configure the application to carry forward any unpaid amounts if it calculates that employees don’t have enough earnings to cover the entire deduction. The application attempts to deduct the unpaid portion of 'allow arrears' deductions off of the next pay.

Deductions can be configured to both allow partial payments and go into arrears. For example, an employee has a $100 deduction applied with only $90 left in earnings. With Allow Partial selected, the application would deduct $90 as a partial payment for the deduction and with Allow Arrears selected, it carries the $10 forward. Conversely, if the deduction didn’t allow partial payments but did allow arrears, the application wouldn’t deduct anything for the deduction from the $90, because that’s not enough to cover the entire deduction, and the full amount of $100 would go into arrears and be carried over to the next pay period. If a deduction is configured with both Allow Partial and Allow Arrears cleared, the application doesn’t make the deduction, nor does it carry the owing amount forward to the next pay period.

Select this checkbox to make the Arrears section available, which includes the Arrear Multiplier Limit Option field and the Allow Arrears for Inactive Employees and Allow Impromptu Arrears checkboxes.

Select the Allow Partial checkbox to configure the application to calculate and subtract partial payments for the deduction. For deductions that allow partial payments, the application only deducts what an employee can pay if it calculates that the employee doesn’t have enough pay to cover the entire deduction.

Clear the checkbox and the application doesn’t deduct partial payments for the deduction; the application wouldn’t deduct anything if it has calculated that an employee doesn’t have earnings for the entire deduction amount.

Checkbox indicating if the deduction allows a declining balance. Selecting this also causes the Display Remaining Balance on Earning Statement option checkbox to load immediately below this option.

Select the Declining Balance checkbox to configure a deduction that represents payments that are applied against an outstanding balance owed, such as a computer loan. Outstanding balance deductions are only paid if an employee has an outstanding balance; computer loans might be available from the employer to all employees, but only the employees who took the loan to pay for a computer have their pay deducted and then only until the loan is paid off.

Important: The loan amount must be specified in People as an employee election. See Balances and Arrears.

Select an option in this drop-down list to attach employer-matched earnings to deductions. The available options include the following: HSA Deduction, Deferred Compensation, and No Selection.

Existing deductions that are marked as HSA Deduction must have the HSA Deduction option selected in the drop-down list, but existing deductions that aren’t marked as HSA Deduction must have the No Selection option selected in the drop-down list.

Displays if you select HSA Deduction or Deferred Compensation. This drop-down list displays a list of earning or deduction options without a tax and compliance code.

State Payroll Tax Report Configuration

This section appears when the Deductions code is associated with a Tax Compliance rule of Australia.

Options under the Taxable/Exempt category are:

• Exempt from all States/Territories - Enables the Exempt category options.
• Taxable in all States/Territories - Enables the Taxable category options.
• Taxable in selected States/Territories - Enables the Taxable category, Exempt category, and Taxable in drop-down lists.

• Allowances
• Bonuses
• Commissions
• Contractor payments
• Directors fees
• Fringe Benefits
• Other taxable payments
• Salaries & wages
• Shares & options
• Superannuation

• Apprentice & trainee wages
• Defence Force
• Disability wages
• Employee overseas
• Maternity/paternity leave
• Other exempt payments
• Worker's compensation

Select the state or territory where the code is to be taxable:

• Australian Capital Territory
• New South Wales
• Northern Territory
• Queensland
• South Australia
• Tasmania
• Victoria
• Western Australia

Select a stop payment method from the drop-down list:

• Full Stop In First Period
• Full Stop In First Period If No Auto Pay
• Full Stop In Next Period

(Shown if Allow Arrears is selected.) Enter an amount to restrict the arrears amount deducted when the application begins to deduct arrears amounts. For example, enter 2, and Dayforce never deducts more than two times the regular deduction amount. If the employee has a regular $200 deduction per pay period, but has $1,000 in arrears: Dayforce deducts only $400 per pay until the arrears amount is paid, then returns to deducting $200 per pay period.

(Shown if Allow Arrears is selected.) Select this checkbox so that users in Payroll have the option to create and recover arrears for unscheduled amounts for this particular deduction. Additional information is available in Impromptu Arrears for Manual Deduction Entries.

Selecting this checkbox opens the Debit Arrears by Default option.

Important: If the Allow Impromptu Arrears checkbox is selected, Dayforce attempts to collect the outstanding balance from the next available pay date. This applies to deductions that have been zeroed-out, unelected, or end-dated in the past. This setting also overrides the check template setting Exclude all deductions, which causes Dayforce to attempt to recover the outstanding arrears balance. This does not apply to scheduled arrears-enabled deductions.

UK Tax and Compliance Settings

Ireland Tax and Compliance Settings

Drop-down list containing the following options to define how the deduction impacts earnings and taxable wages:

• Gross Pay Deduction: (Pre-tax deduction) The application reduces the taxable wages by the deduction amount before it deducts employee tax. For example, if an employee has $1,000 in earnings and a $100 deduction, their taxable wages are $900.
• Net Pay Deduction: (Post-tax deduction) The application withholds the deduction from the payment after it deducts employee tax. For example, if an employee has $1,000 in earnings and a $100 deduction, their taxable wages are $1,000.
• Memo Deduction: The deduction doesn’t impact an employee's earnings or taxable wages. It is located in the Memo Information section of the earning statement.

Drop-down list containing the following options, depending on the option you select from the Tax Type drop-down list. The Tax Method field is disabled if the earning type is memo or reimbursement.

For the Gross Pay Deduction tax type, the available options are:

• Employee Salary Sacrifice (Other): (pre-tax)
• Employee Salary Sacrifice - Superannuation
• Fringe Benefit Tax
• Fringe Benefit Tax Exempt
• Workplace Giving

For the Net Pay Deduction tax type, the available options are as follows:

• Advance
• Loan
• Miscellaneous: this tax type ensures that the deduction definition is calculated on gross earnings before applying the PAYG tax for Australia
• Superannuation ER
• Union

For the Memo Deduction tax type, the available options are Miscellaneous and Superannuation ER.

Drop-down list containing the following options to define how the deduction impacts earnings and taxable wages:

• Memo Deduction: Unlike post statutory deduction, this deduction doesn’t impact an employee's net pay. The deduction amount is displayed in the memo information section of the earning statement or payslip.
• Post Statutory Deduction: A deduction that is taken after the employee and employer contributions (CPF, MBMF, CDAC, SINDA, SDL, FWL and ECF) are calculated and applied.
• Pre Statutory Deduction: A deduction that is taken before the employee and employer contributions (CPF, MBMF, CDAC, SINDA, SDL, FWL and ECF) are calculated and applied.

• Above Amount Of
• Above Percent Of
• Expression
• Flat Amount
• Flat Amount Of
• Percent Of

Select the level at which to apply the calculation values:

• Employee: Values are employee-specific and provided on each employee's record in People. For example, with the Calculation Type set to Percent of, you need to specify the percentage value that the application uses to calculate the deduction on the records of every employee whose pay is deducted.
• This configuration allows you to specify individual values for each employee; it is the most granular or specific method of providing deduction values.
• Pay Group: Values are pay group-specific and provided in the Pay Groups tab of the deduction definition; employee overrides cannot be provided, so the value specified for a pay group is used for all employees who belong to that pay group. For example, with Flat Amount selected as the Calculation Type, you need to specify the dollar amount deducted from the pay of employees in each pay group.
• This configuration allows you to specify values for entire pay groups at a time; it is less granular than the Employee option but appropriate when the employees grouped in a single pay group never have different values deducted from their pay.
• Pay Group or Employee Override: Values are pay group-specific but can be overridden per employee in People. You could specify a $500 flat amount deduction in a pay group as a default value, but then specify overrides of $650 for a few specific employees; for the employees with an override in People, the application uses the employee-specific value instead of their pay group's value.
• This configuration allows you to specify common or default values for pay groups with the option of overriding the value for specific employees.

Defines what type of reference the application makes in order to calculate the deduction depending. Each selection from the Calculation Type drop-down list requires that the application references some other earning, deduction, or grouping, when calculating the deduction, except for the Flat Amount option.

For example, to configure a deduction where employees pay, into their 401(k) accounts, 5% of whatever they earn, you would need to reference an earning, specifically the earning that represents regular earnings.

Select one of the following values:

• Deduction: The application references another deduction when calculating the amount of the deduction.
• Deduction Grouping: The application references a deduction grouping (the sum of several individual deductions) when calculating the amount of the deduction.
• Earning: The application references an earning when calculating the amount of the deduction.
• Earning Grouping: The application references an earning grouping (the sum of several individual earnings) when calculating the amount of the deduction.

Select the level to define access limits:

• Employee: Limits are employee-specified as defined on each payroll election record in the employee profile.
• Pay Group: Limits are pay group-specific as defined in the Pay Groups tab of this deduction definition and applied for all employees who belong to the pay group.
• Pay Group or Employee Override: Default limits are pay group-specific defined in the Pay Groups tab of this deduction and apply to all employees belonging to the pay group. Optionally specify employee level overrides in payroll election records in the employee profile.

Select the limit method that the application uses to cap this deduction:

• Fixed Amount. Limits the deduction to a specified monetary amount.
• Percent of. Limits the deduction to a percentage of the reference selected in Look Up Value.

• Pay Group in Access in the Parameters tab and selected Flat Amount as a Calculation Type.
• Pay Group or Employee Override in Access in the Parameters tab and selected Above Amount of or Flat Amount as a Calculation Type.

You must mark one payee as the default for each effective date range. Dayforce auto-populates the default payee when you add a new payroll election record for this earning or deduction in an employee's profile.

You can mark a payee with future effective dates, and you can mark different default payees with different date ranges. For example, Default Payee A has an Effective From date of 4/29/2019 and an Effective To date of 03/19/2021, and Default Payee B has an Effective From date of 03/22/2021 and no Effective To date.