Add a Deduction Option in HRM

Define deduction categories to support salary processing, tax compliance, and benefit tracking — aligned with UK payroll standards and HMRC reporting.

🔐 Access Control

• Only Admin users or staff with HRM setup permissions can add or edit deduction options
• From the Dashboard, use the side menu to navigate: HRM → System Setup → Deduction Option

🧭 Step-by-Step: Add a Deduction Option

1️⃣ Open Deduction Setup

• Navigate to the Deduction Option section under System Setup
• Click the ➕ icon to open the “Create Deduction Option” form

2️⃣ Enter Deduction Details

• Name*: Enter the deduction name — UK-relevant examples include:
  • Income Tax (PAYE)
  • National Insurance
  • Student Loan Repayment
  • Workplace Pension (Auto-Enrolment)
  • Section 80C and Section 80TTA (if applicable to international staff)
  • Mutual Fund, Charity Payroll Giving, Cycle to Work Scheme

Use clear, HMRC-aligned or benefit-specific names for audit and payslip clarity.

3️⃣ Save the Deduction Option

• Click Create to add the deduction type
• The new entry will appear in the list with action icons:
  • 🖊️ Edit
  • 🗑️ Delete

✅ Best Practices (UK Context)

• Align deduction names with HMRC categories for PAYE, NI, and pension reporting
• Use specific labels for voluntary deductions (e.g. Union Fees, Gym Membership, Childcare Vouchers)
• Add all relevant options before configuring salary components or payslips
• Review deduction list quarterly to reflect legislative updates or benefit changes
• Avoid vague names like Misc — be precise for audit and employee transparency