Setting Up Deductions for an Employee in Keka

In Keka, deductions are an essential part of managing payroll. Whether it’s for loss recovery, damage reimbursement, or legal obligations like child support garnishments, deductions can be easily added and customised for each employee. Here's how to set up and manage deductions within Keka.

1. Navigate to the Deductions Section

First, access the employee’s Finance tab from their profile. Scroll down to the Deductions section. If there are no deductions added yet, you'll see a prompt to Add New Deduction. Click on Add New Deduction to start the setup process.

2. Select a Deduction Type

Once you click to add a deduction, a dropdown menu will appear with the list of predefined deduction types. These deduction types are pre-configured in the Payroll section and should be set up beforehand.

3. Configure Deduction Details

After selecting the deduction type, you'll need to fill in the specific details related to the deduction:

• Description (1): Provide a brief description of the deduction. For example, if it's for damage, you can specify the item or reason, such as "Laptop Damage."
• Start Date and End Date (2): Define the period during which the deduction will be applied.
• Amount per Pay Period (3): Enter the specific amount that will be deducted from the employee's salary in each pay period.
• Total Amount (4): Specify the total amount that the deduction will accumulate to over time (optional).
• Annual Limit (5): If applicable, enter an annual limit for this deduction to prevent over-deducting beyond a specified amount within a year.
  
  

These fields provide flexibility in ensuring that the deduction is accurately applied based on the company’s policies and the employee’s situation.

4. Save and Apply the Deduction

Once all the relevant details have been entered, click Save to apply the deduction. The deduction will now be displayed in the employee’s Deductions section, where you can review or modify it if needed.

5. Child Support Garnishments (Special Case)

One unique feature that Keka offers is the support for Child Support Garnishments. This type of deduction is a legal requirement and can be configured with specific remittance details.

• Automatic Payment Remittance: If this option is enabled, Keka will automatically remit the deducted amount to the designated agency. This is especially useful for handling legal garnishments in a streamlined manner.
• Agency Information: Enter the relevant details such as the Agency Name, External ID, and FIPS Code (if applicable).
• Start Date and End Date: Configure when the garnishment should begin and, if applicable, when it should end.
• Amount per Pay Period: Define the exact amount that will be deducted from the employee’s paycheck for child support.

By configuring child support garnishments, you ensure that the company remains compliant with legal obligations, and Keka helps automate the process by handling remittances.

7. Managing Multiple Deductions

You can add multiple deductions for an employee, each with its own specific settings. After saving a deduction, it will be listed in the Deductions section, and you can always edit or delete a deduction by using the action menu next to each deduction.