1. Open Payroll, click Payroll, and then click Payroll Setup.

2. In the Payroll Instructions tab, click on Add New Deduction.

Options within the setup screen

1. The first section is titled Details. You will need to enter both the English and French name, as well as a description. If you have no French-speaking employees, these four entries could all be the same. 

2. The next section is the Application Policy.

1. Enabled: You will want to make sure the checkbox is checked to make sure the instruction is usable. If you later decide this payroll instruction should not be used anymore, you can unselect this option to disable it.
   

2. Schedule: This represents how often you would like the instruction to appear on the input sheet. Most options offer a frequency where the instruction will appear automatically, the option Occasional being the one exception - occasional instructions will never appear automatically, and must be added to the input sheet manually when required.
   

3. Applies to: If this option is selected, all employees will default to have this instruction available. A box will exist on the input sheet for all employees, unless specifically disabled. They will not see the instruction on their statement of earnings unless a value is entered (default or manual). If this box is left unselected, you will need to add this instruction to the employees who require it via their employee profile.
   

4. Generates Value In: Generally, for deductions, you will want to keep it as Home Department Only. This means any default values will be entered only into the home department for the employee. If you select All Departments then a box will exist for every department an employee works in (and default values will pre-populate every available box, duplicating values).
   

5. Allow: Allowing a value/formula override means you can customize this payroll instruction at an employee level via their employee profile. We suggest you select this. 
   

3. This brings us to the Payroll Input Sheet section. 

1. Input Value Type: This informs the system what will be entered on the input sheet.
   

1. Hours: Hours are included in the insurable hours total, which appears on the statement of earnings and is important for the ROE
   
2. Money: Depending on the source deduction settings below, money will appear as taxable/insurable/pensionable income.
   
3. None: These entries are used when you are tracking a value not relevant to money or hours
   
4. Percent: Any value entered will be divided by 100, commonly used in combination with a formula calculation
   
5. Units: Commonly used in combination with a formula calculation (2 units at $50 per unit = $100)
   

1. On the payroll input sheet: If this is selected, this instruction will appear on the input sheet. If deselected, you will only be able to change values within the employee profile, and although you will see those values on the register they will not appear on the input sheet. We suggest leaving this selected.
   

2. Auto-Protect: If this is selected, the values will appear on the input sheet, but will be un-editable. The only way to change values is within the employee profile. We suggest leaving this unselected.

3. Default Value: If you want a value to auto-populate for all employees who have this instruction (see Applies to in the Application Policy section), enter that value here. Otherwise, a 0 will pre-populate unless a default entry has been specified at an employee level. 
   

4. Input warning limit: If a value is specified here, any amounts entered that go above that value will produce a warning on the "errors/warnings" report available on the results page of a processed pay run.
   

5. Input error limit: If a value is specified here, any amounts entered that go above that value will produce an error on the "errors/warnings" report available on the results page of a processed pay run. Errors must be resolved before a pay run can be approved.
   

6. Sort order: This allows you to sort your payroll instructions on the input sheet - smallest number to the left. For more information, check out our How do I organize my payroll instructions article.

                             

4. The Instruction Value represents what formulaic calculations should happen to values entered into this payroll instruction (if any). If you simply want the input to equal the output, select A fixed value or captured by the payroll input sheet. If you want the system to do some math for you before outputting a value, the mathematical formula can be entered by selecting Determined using a formula and entering the calculation in the entry box. If you need assistance entering formulas, please contact our support team.

5. The Formula Code is a unique identifier so this instruction could be a reference in other instructions calculations. We suggest using the instruction name again (spaces will automatically be removed).

6. The Source represents how this deduction is factored into source deductions (tax, CPP, and EI calculations).

1. Off Net: the deduction will come off the Net amount. 
   

2. Off Gross: the deduction will come off the Gross amount. (generally only allowable for union dues and RRSP amounts.
   

1. Periodic: Use this for deductions that will come off on a regular basis (e.g. Garnishment).
   

2. Non-Periodic: Use this for deductions that will be connected to an irregular payment (e.g. RRSP payments that will be directly deposited after receiving a bonus) 
   

                

7. Click Save.