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How to set up and manage your deduction categories

Updated

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
  1. Click on Settings ( ).
  2. In the Payroll section, click on Deduction Categories.
  3. Click the + Add Deduction category button.
  4. 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
  1. Click on Settings ( ).
  2. In the Payroll section, click on Deduction Categories.
  3. In the Actions column of the deduction category that needs to be edited, click the Edit button.
  4. In the Edit deduction category form, enter the required changes.
  5. 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
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