Deductions - Non Allowable (After Statutory Deductions)

If an employer and employee enters into an agreement whereby the employee agrees to make a payment to an employer to cover an expense through a deduction from their payroll, then this deduction can be setup as a non-allowable deduction (not allowable as a deduction before tax). This type of deduction agreed between an employee and employer is a non-statutory deduction and does not form part of any Revenue return.


To set up such a deduction

• Open Company settings
• Choose the Deductions tab
• Rename a Deduction to suit the arrangement
• Ensure all the Tax/PRSI/USC/Pension allowable items are unflagged
• Save the new deduction

To enter the deduction value at employee level

• Open the Employee record
• Choose the Adds/Deds tab
• The previously setup deduction will be listed
• Enter the periodical amount of the agreed deduction
• Save the deduction

The deduction will continue periodical until reset to zero by the payroll administrator.