Benefits & Deductions
Benefits and deductions determine the real value of compensation and the true cost of employment. Our Benefits & Deductions service ensures every taxable and non‑taxable benefit, statutory deduction and voluntary withholding is calculated correctly, reported transparently and fully compliant.
We integrate benefits and deductions directly into payroll, payslips, accounting and tax reporting so there are no blind spots for management, employees or auditors.
What’s included
✔️ Benefits and deduction policy mapping: define what applies, to whom, and under what conditions
✔️ Setup of payroll rules and categories (taxable vs non-taxable where applicable)
✔️ Recurring items management (monthly benefits, fixed deductions, subscriptions, allowances)
✔️ One-off adjustments (bonuses, corrections, retro items, reimbursements if included)
✔️ Clear reporting: benefit/deduction summaries, employee-level breakdowns, and management totals
✔️ Exception handling: negative nets, unusual deductions, caps/limits breaches, special cases
✔️ Documentation of rules: simple ‘policy-to-payroll’ guide to avoid ambiguity
✔️ Change management: update workflow when policies change (new benefit, changed cap, eligibility updates)
✔️ Audit-ready evidence pack: rules, approvals, and adjustment logs by period
What we need from you
✔️ Your current benefits and deductions policy (or a description of how it works in practice)
✔️ Eligibility rules (who qualifies, when it starts/ends, any caps or limits)
✔️ Tax and payroll compliance requirements (jurisdiction-specific where relevant)
✔️ List of recurring items and any historical adjustments you want aligned
✔️ Approval owners for one-off adjustments and policy changes
✔️ Employee master data relevant to benefits (roles, locations, contract types)
How it works
1. Define rules: map benefits/deductions, eligibility, calculation logic, and approvals.
2. Configure payroll: create categories, set recurring items, and define one-off adjustment workflows.
3. Validate calculations: run test cases and reconcile against expectations and prior periods if needed.
4. Go live: apply rules in the payroll cycle with controlled approvals and reporting.
5. Maintain: update rules when policies change and monitor exceptions each cycle.
Typical timeline
Basic setup (few items): 3–7 business days including testing.
Standard setup (multiple benefits/deductions): 1–3 weeks depending on complexity and approvals.
Ongoing changes: typically 1–5 business days per change, depending on testing needs.
Common pitfalls we prevent
✔️ Policies exist ‘in emails’ but not as clear payroll rules - leading to inconsistent calculations
✔️ Taxability misunderstood (what should be taxed vs not), creating compliance risk
✔️ Manual one-off adjustments without approvals or logs - hard to defend later
✔️ Caps/limits not applied correctly (benefits, deductions, garnishments)
✔️ Employee disputes because payslip labels and logic are unclear
✔️ No reporting layer, so management can’t see true total employment cost
FAQs
Find answers to common questions!
Yes. We map benefits to the correct payroll treatment and keep documentation so the logic is clear and defensible.
Yes. We manage both and implement an approval workflow for one-offs to reduce errors and disputes..
Yes. We implement caps, thresholds, and eligibility rules and test edge cases.