A payroll deduction occurs when you remove funds from an employee's pay before they receive the pay cheque. Legislation mandates some deductions, and some are because of a private agreement between an employer and an employee. The payroll platform default setup for a new business includes five basic deduction categories, such as Chinese Development Assistance Council (CDAC) Fund and Eurasian Community Fund (ECF).
The Deduction Categories feature allows you to create a new deduction category and specify details such as the name, external ID and classification. You can also use this feature to edit any previously entered information and delete a record that is no longer required.