Add a deduction for an employee
Add a deduction pay item for an employee then add it to their pay template. Xero then calculates the employer contribution for reporting.
- From Settings, select General Settings.
- Under Features, click Payroll Settings.
- Click the Pay Items tab and click Deductions.
- From Add, select the type of deduction.
- Enter a unique name for the pay item (this will show on the employee's paystub).
- Enter the other deduction details including the liability account.
- Click Add.
You'll need to add the deduction pay item to the employee's pay template.