Scheduled deductions function a bit differently than its permanent and temporary/variable counterparts. The deduction applies once a month rather than in specific pay periods and will look across payroll years. 

This article will only explain the definition and provide examples of scheduled deductions. For more information on temporary payroll categories, please refer to this article. 

Creating a Scheduled Deduction Payroll Category

1. Go to Payroll > Payroll Setup > Payroll Categories. 
2. Click the "+ New" button to create a new payroll category. 
3. Select the 'Scheduled Deduction' classification. 
4. Enter the required fields, such as "Code" and "Name". 
5. One of the fields to enter is "Process". Select 'Once a month' and select which date refers to the start of the month (either 'Period Start Date', 'Period End Date', 'Pay Date', or 'Work Date'). 
   1. 'Period Start Date' refers to the pay period start date. 
   2. 'Period End Date' refers to the pay period end date. 
   3. 'Pay Date' refers to the pay period payment or cheque/check date. 
   4. 'Work Date' refers to the employee's working date, as specified in the employee's timesheet or labor record. 
6. Enter the additional fields as required, such as "Minimum" and "Maximum". 
7. On the right-side of the setup page, identify which taxes this deduction payroll should deduct before. 
8. Click the save button to save your changes.

Tip: Remember to assign the new payroll category to the applicable employees and add values as required! You will also want to ensure that you enable it in the first step of the payroll wizard (Select Pay Period) when processing your next pay run. By default, new payroll categories are inactive in this step. 

Examples

For all examples, assume that the pay frequency is weekly and the value for the scheduled deduction is $20. 

Example 1: Deducting once a month, by period start date 

• In the 1st pay period (Jan 1-7), $20 will be deducted. 
• In the 2nd pay period (Jan 8-14), $0 will be deducted. 
• In the 5th pay period (Jan 29-Feb 4), $0 will be deducted. 
• In the 6th pay period (Feb 5-11), $20 will be deducted, since this is the first pay period where the start date is in a new month.

Example 2: Deducting once a month, by period start date (across payroll years)

• In the 52nd pay period (Dec 22-29), $0 will be deducted (assuming that $20 was deducted in an earlier pay period in the month). 
• In the 1st pay period of the new year (Dec 30-Jan 5), $0 will be deducted. 
• In the 2nd pay period of the new year (Jan 6-12), $20 will be deducted, since this is the first pay period where the start date is in a new month.

Example 3: Deducting once a month, by period end date 

• In the 1st pay period (Jan 1-7), $20 will be deducted. 
• In the 2nd pay period (Jan 8-14), $0 will be deducted. 
• In the 5th pay period (Jan 29-Feb 4), $20 will be deducted, since this is the first pay period where the end date is in a new month. 
• In the 6th pay period (Feb 5-11), $0 will be deducted. 

Example 4: Deducting once a month, by period end date (across payroll years)

• In the 52nd pay period (Dec 22-29), $0 will be deducted (assuming that $20 was deducted in an earlier pay period in the month). 
• In the 1st pay period of the new year (Dec 30-Jan 5), $20 will be deducted, since this is the first pay period where the end date is in a new month.
• In the 2nd pay period of the new year (Jan 6-12), $0 will be deducted.

Example 5: Deducting once a month, by pay date 

• In the 1st pay period (Jan 1-7, paid Jan 8), $20 will be deducted. 
• In the 2nd pay period (Jan 8-14, paid Jan 15), $0 will be deducted. 
• In the 5th pay period (Jan 29-Feb 4, paid Feb 5), $20 will be deducted, since this is the first pay period where the pay date is in a new month. 

Example 6: Deducting once a month, by pay date (across payroll years) 

• In the 52nd pay period (Dec 22-29, paid Dec 30), $0 will be deducted (assuming that $20 was deducted in an earlier pay period in the month). 
• In the 1st pay period of the new year (Dec 30-Jan 5, paid Jan 6), $20 will be deducted, since this is the first pay period where the end date is in a new month.

Example 7: Deducting once a month, by work date 

Assume that the employee works all days in a pay period. 

• In the 1st pay period (Jan 1-7), $20 will be deducted. 
• In the 2nd pay period (Jan 8-14), $0 will be deducted. 
• In the 5th pay period (Jan 29-Feb 4), $20 will be deducted, since this is the first pay period of which the employee worked in a new month. 

Example 8: Deducting once a month, by work date (across payroll years)

Assume that the employee worked all days in a pay period and started working on Dec 30th. 

• In the 52nd pay period (Dec 22-29), no paycard will be created, as the employee did not start working yet. 
• In the 1st pay period of the new year (Dec 30-Jan 5), $40 will be deducted ($20 for December and $20 for January)
• in the 2nd pay period of the new year (Jan 6-12), $0 will be deducted.