Setting Up Deductions for an Employee in Keka

Introduction

Deductions are a vital part of payroll management in Keka. They may be used for various purposes, such as loss recovery, damage reimbursement, or legal obligations like child support garnishments. With Keka, deductions are customizable for each employee, ensuring accurate and compliant payroll processing.

This guide walks you through how to set up and manage different types of deductions in Keka.

Setting up Deductions

Navigate to the Deductions Section

1. Open the employee’s profile and go to the Finance tab.
2. Scroll down to the Deductions section.

3. If no deductions have been added yet, click the Add New Deduction button to start the setup process.

   

Select a Deduction Type

• After clicking Add New Deduction, a dropdown menu will appear with predefined deduction types. 
• These types are pre-configured in the Payroll section

Configure Deduction Details

Once you’ve selected the deduction type, you’ll need to provide the necessary details:

• Description: Enter a brief description of the deduction (e.g., “Laptop Damage”).
• Start Date and End Date: Set the duration for which the deduction will apply. This could be a specific period or the full year.
• Amount per Pay Period: Specify the amount to be deducted from the employee’s salary each pay period.
• Total Amount: (Optional) Enter the total amount that will be deducted over time.
• Annual Limit: (Optional) Set an annual cap to prevent deductions from exceeding a certain amount within the year.

These fields allow you to tailor the deductions to match the company’s policies and the employee’s specific situation.

Save and Apply the Deduction

1. Once all relevant details are entered, click Save to apply the deduction. 

Child Support Garnishments (Special Case)

Keka also supports child support garnishments, which are legal deductions. This process can be streamlined to ensure compliance with legal requirements.

Key Configuration Details:

1. Automatic Payment Remittance: If enabled, Keka will automatically remit the deducted child support amount to the designated agency.
2. Agency Information: Enter the relevant details, such as the Agency Name, External ID, and FIPS Code (if applicable).
3. Start Date and End Date: Set the dates for when the garnishment will begin and end.
4. Amount per Pay Period: Define the amount to be deducted for child support each pay period.

By configuring child support garnishments, Keka helps automate the remittance process while ensuring compliance with legal obligations.

Managing Multiple Deductions

Keka allows you to manage multiple deductions for an employee, each with its own specific settings. 

1. Once a deduction is saved, it will appear in the employee’s Deductions section. 
2. You can easily edit or delete any deduction by using the action menu next to the respective deduction.