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A reducing balance deduction automatically ceases once a set amount has been deducted. They are especially useful when a third party asks an employer to deduct a certain amount from employee wages over a period of time. Examples are IRD Arrears, Court Fines and WINZ Repayments.

To set a reducing balance deduction for an employee, you first need to add the deduction to your organisation, then link the deduction to the employee.

To set a reducing balance deduction
  1. From the front screen click Employee > Modify Employee Details > Allowances.

  2. Select an employee.

  3. Click the deduction your want to set as a reducing deduction.

  4. The Modify A Single Allowance window opens. Click Reducing Balances.

  5. Enter the the amount to be deducted in total and click Go. Each pay period Ace Payroll makes the deduction until the balance is reached, then ceases automatically.

  6. If you want this deduction to be made on a regular basis, click Usual Units and set the amount to be deducted each pay cycle.
    If you want to make this deduction manually when you process your payroll, leave Usual Units set to nil.

  7. If the deduction is paid to a third party such as WINZ, Ministry of Justice, or IRD, you can link the deduction to a bank account to process it through direct credits.