How do I set up a Union Deduction that is a percentage of Basic or Gross?
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How do I set up a Union Deduction that is a percentage of Basic or Gross?
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How do I set up a Union Deduction that is a percentage of Basic or Gross?
Harvester Payroll Online can deduct union subscriptions automatically for employees who are registered as union members. The standard union setting supports a percentage of Basic Pay, a percentage of Gross Pay, or a fixed Kwacha amount.
STEP 1 - SET THE UNION RATE
Open Company Settings and find "Union % or Fixed (if 10 or above)".
Examples:
2 = 2% of Basic Pay (or Gross Pay if selected).
3 = 3% of Basic Pay (or Gross Pay if selected).
9.5 = 9.5% of Basic Pay (or Gross Pay if selected).
10 = a fixed K10 deduction per payroll payment.
15 = a fixed K15 deduction per payroll payment.
A setting below 10 is treated as a percentage; 10 or above is treated as a fixed Kwacha amount.
To calculate a percentage on Gross Pay rather than Basic Pay, tick "Union on Gross?" in Company Settings. The Gross Pay basis excludes Gratuity, Terminal Benefit payments and Per Diem allowance. This option does not affect fixed Kwacha deductions.
STEP 2 - SELECT THE UNION MEMBERS
Open Edit Employee, select the employee and tick "Union Member?", then save. You may also use the Table Employee batch-edit option to set membership for several employees. Only employees with Union Member enabled have the standard union deduction calculated.
STEP 3 - PROCESS OR UPDATE PAYROLL
Harvester calculates the union deduction automatically when the employee's payroll payment is captured or recalculated. It appears on the payslip and in payroll reports. The normal payroll fields and Custom Extras are now shown on the same payment capture screen; there is no separate second input page.
If you change the company union rate or an employee's union membership after processing a payment, reopen and resubmit the affected payment so the deduction is recalculated. Changing the company setting alone does not automatically recalculate all existing payments.
STEP 4 - CHECK UNION TOTALS
Use the monthly Payroll Summary Report to review the company total union deductions and the amounts to remit to the relevant union.
IMPORTANT
Confirm the subscription amount and frequency with the union. A fixed amount is applied per payroll payment, not automatically once per calendar month. Do not apply both a standard Union Deduction and a Custom Extra for the same subscription, as that could deduct twice.
If you need an additional or separate union deduction, or a fixed amount below K10, use a Custom Extra instead. See:
https://www.harvesteronline.net/help/topic/extras-union-percentage-deduction-example/how-do-i-set-up-a-non-percentage-union-deduction-example/
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