How to add an Employee Deduction in FuseOffice Payroll

Deductions are amounts taken from an employee’s pay for company-specific items such as internal charges or optional schemes.
Statutory deductions, loan repayments, and salary advance repayments are handled automatically by FuseOffice based on your payroll configuration.

Any additional deductions you create here are applied automatically every payroll cycle.

Where to Add Deductions

Navigate to:

1. Payroll > Settings > Taxes & Benefits

2. Click on the Deductions / Contributions tab

3. Click on Add Deduction

This opens the Add Deduction form.

1. Description (Internal View Only) – Optional

This description is only visible to your internal payroll or HR team.
Use it to explain the purpose of the deduction internally.

Examples:
Staff welfare contribution
Union membership fee

2. Deduction Name (Shown on Payslip)

This is the name employees will see on their payslips.
Choose a clear, employee-friendly name.

Examples:
Welfare Deduction, Union Fee, Staff Savings Scheme

3. Deduction Type

FuseOffice supports three deduction types:

a) Percentage

The deduction is calculated as a percentage of the employee’s pay.

You must select where the percentage applies from:

Basic Salary
Gross Pay

You must also enter:

Percentage value (e.g. 5%)

Monthly limit (optional)

Example:
5% of gross pay, capped at K1,500 per month.

b) Fixed Amount

A fixed amount deducted every payroll run.

You must enter:

Deduction amount

Example:
300 per month.

c) Custom Amount

Used when employees have different deduction amounts.

After creating the deduction, you will assign amounts to employees individually.

4. Deduct From

This option applies to Percentage deductions only.

Basic – Deduction is calculated from basic salary
Gross – Deduction is calculated from gross pay

Choose carefully (and confirm with local laws), as this directly affects payroll calculations.

5. Monthly Limit / Amount

For percentage deductions:

This is the maximum amount that can be deducted in a month.

If the calculated percentage exceeds this value, the limit is used instead.

6. Is This a Contribution?

This determines whether the deduction is linked to an institution.

YES – The deduction is an institutional contribution

NO – The deduction is an internal or company-specific deduction

If you select YES, you must choose an Institution (e.g. Pension Fund) If the institution does not appear on the list, contact us to include it.

7. Employees Enrolled

You have two options:

  • All Employees - The deduction is applied to all employees automatically.

  • Custom - Allows you to select only specific employees.

8. Save the Deduction

Click Add to save.

If you selected Custom, you will then enroll employees and assign amounts where required.

What Happens Next?

After creation:

  • The deduction is automatically applied during payroll runs

  • It appears clearly on employee payslips

  • You can edit, manage enrollments, or delete it at any time

  • If a deduction amount is 0, it will not appear on the payslip

This allows you to enroll deductions broadly while maintaining full control over payroll impact.