The Union Deduction component can be added onto an employee's Recurring Payroll Components screen as a recurring component. However, the Union Table and components have to be created on company level first.
Step 1: Setup the Union Tables on Company level
There are two input options related to the union table setup:
- Percent of base: The component will calculate a specific percentage of the income base defined.
- Amount: The component will reflect the advised amount specified.
Navigate > Config > Basic Settings > Dropdown Management > Component Tables Configuration
Step 2: Set up the Union Deduction component
There are two options related to union deductions:
1. Union Deduction (Code: UNION)
This deduction is calculated before tax. It reduces the employee’s taxable income, meaning the deduction amount is subtracted from gross pay before taxes are applied. Use this option if your union contributions are pre-tax.
2. Union Post Tax (Code: UNIONPT)
This deduction is calculated after tax. It does not affect taxable income as taxes are calculated first, and the deduction is applied afterward. Use this option if your union contributions are post-tax.
Navigate > Config > Payroll > Payroll Config > Payroll Components
NOTE
If the Union input was setup according to "Percent of base", the Union (Income) note component will need to be configured and added to the Recurring Payroll Components screen.
Step 3: Setup the Union Deduction component on Employee level
Navigate > Employee > Payroll Processing > Recurring Payroll Components > Deductions