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.