Standard deductions refer to all deductions, excluding individual income tax. The amount of deductions from an employee's wages and other incomes is calculated from the amount to be paid to the employee, after the deduction of the individual income tax. Under civil regulations, the maximum allowed deductions from wages cannot exceed 50 percent.

You can use the Borrowing, Alimony, and Othersforms to calculate standard deductions based on the corresponding Borrowing, Alimony, or Otherstypes.

1. Click Staff accounting> Calculation procedures> Standard deductions> Borrowingto open the Borrowingform.

2. Press CTRL+N to create a new line.

3. In the Deduction codefield, select the deduction code as Borrowing.

   Note
   You can define the deduction codes for Borrowingin the Standard deductionsform.

4. In the Employeefield, select the code of the employee for whom the deduction is made.

5. In the Documentfield, enter the document name and number for a deduction transaction.

6. In the Document datefield, select the date of the original document.

7. In the Start dateand Finish datefields, select the starting and ending dates for advance payment.

   Note

   When you select the ending date in the Finish datefield, you cannot enter a deduction amount in the Deduction amountfield. This means that the deduction amount will not be collected from the employee until the ending date is specified. If you enter the deduction amount, you cannot select the ending date in the Finish datefield. This means that the deduction amount will not be collected from the employee until full repayment of the deduction amount is made.

8. In the Deduction amount over the periodfield, enter the total deduction amount for the period.

   Note

   When you enter the total deduction amount for the period in the Deduction amount over the periodfield, you cannot enter the percentage of deduction in the Deduction percentagefield. This means that a fixed amount will be collected from the employee for each period. If you enter the deduction percentage, you cannot enter the total deduction amount for the period in the Deduction amount over the periodfield. This means that for each period, a certain deduction percentage will be collected from the employee as specified in the settings for the corresponding sequence.

9. Click the Generaltab.

10. In the Recipient typefield, select the recipient as Customer, Employee, or Vendor.

11. In the Deduction receiverfield, select the recipient based on the selection made in the Recipient typefield.

12. In the Account identificationfield, select the bank account used to transfer the deduction to the recipient.

    Note
    For a deduction of type Alimony, the Bank accountfield is editable only if the payment is made through a bank.

13. In the Alimony payment waysfield, select a method for alimony payment from the following options:

    • Sheet- Alimony payments are made by sheet.

    • Bank- Alimony payments are made through bank transfer.

    • Mail recipient- Alimony payments are made by email.

    Note
    This field is available only in the Alimonyform.

14. In the Alimony paymentfield group, select the sequence code for calculating alimony by e-mail, in the Sequencefield.

    Note
    You can select a sequence code only if you select Mail recipientin the Alimony payment waysfield. This field is available only in the Alimonyform.

15. In the Borrowing percentagefield, enter the percentage of borrowing.

16. Select the Lucre calculationcheck box to calculate the material profits for deduction transactions of type Borrowing.

    Note
    The sequence number of the next line is displayed in the Sequence numberfield.

17. In the Sequencefield, select the calculation sequence code to define the order in which the line is calculated.

18. In the Periodfield, select the period for which the deduction amount is collected from the employee.

19. Select the Amount controlcheck box to allow control of the deduction amount.

    Note
    The deduction amounts for which amount control exists cannot be more than the amount for which the calculation is configured in the General options of standard deduction calculationform.

20. Select the By-worker calculationcheck box to allow for internal combined work by the employee.

    Note
    If you select this check box, when calculating the deduction amount, the payment amount is considered based on the employee's place of work and in internal combination.

21. Click the Calculation ordertab.

    Note
    A list of deduction codes created is displayed in the order in which they were entered in the form.

22. Click Upand Downto arrange the deduction codes in the required order.

    Note
    This will automatically change the values of the deduction code sequence number on the Generaltab.

23. Click the Postingtab.

24. In the Account typefield, select the type of account for the deduction transaction.

25. In the Accountfield, select an account number to post the deduction transaction.

26. Select dimensions for the deduction transaction in the Department, Cost center, and Purposefields.

    Note
    If you do not enter any value of the account type, account or dimension codes for a deduction transaction, these values are taken from the Pay type setupform.

27. Click Calculationto open the Standard deductionsform, and then specify the criteria for an employee for whom the standard deduction is calculated.

    Note
    If you do not specify any criteria, the standard deduction is calculated for all employees.

28. Click OKto calculate the standard deductions.

29. In the Borrowingform, click Payment historyto view the history of payments made by the selected employee for the calculation period in the Payment history (Borrowing)form.

    Note

    You can view the deduction amount paid by an employee in the Deduction amountfield. If you do not mention the deduction amount but you specify the end date of the deduction in the Finish datefield then the Deduction amountfield will be blank. The remaining amount to be paid by an employee is displayed in the Remainderfield and the amount paid by the employee in the current calculation period in the Paidfield. If no deduction amount is specified for the code, but the end date of the deduction is specified then the Remainder amount field will be empty. For the alimony and others deduction types, you can view the history of payments in the Payment history (Alimony)form and Payment history (Others)form.

30. Press CTRL+S or close the form.

31. In the Borrowingform, click Payroll linesto view the deductions calculated in the current calculation period for one of the deduction types in the Standard deductionform for all employees.

32. Press CTRL+S or close the Standard deductionform.

33. Press CTRL+S or close the Borrowingform.

34. Click Staff accounting> Calculation procedures> Standard deductions> Standard employees' deductionsto open the Standard employees' deductionsform.

    Note

    You can view the deductions calculated for all deduction types in the current calculation period in this form. In the left pane, you can view the employees for whom the standard deductions are calculated. In the right pane, the standard deductions for the selected employee are displayed. The calculation orders for standard deductions with different deduction codes are entered in the Standard deductionsform. The calculation orders for standard deductions with a single deduction code are entered in the Alimony, Borrowing, and Othersforms.

35. Click Payroll linesto view the deductions calculated for all deduction types in the current calculation period in the Standard deductionform.

36. Press CTRL+S or close the Standard deductionform.

37. Press CTRL+S or close the Standard employees' deductionsform.