Deductions 

Purpose

This component calculates all payments to third-parties with the exception of taxes and garnishments, which are deducted directly from the employee’s pay. Maximum thresholds for deductions and outstanding payments are taken into account.

Features

Within payroll, deductions can refer to gross remuneration or to net remuneration. The following types of deductions are differentiated between:

Statutory deductions include taxes or social insurance payments, for example.

Voluntary deductions include payments to a savings plan or a voluntary insurance policy that the employer takes out for the employees.

Moreover, you differentiate between:

for example a donation

for example, in the case of imputed income or a savings plan.