Savings

A savings deduction is a voluntary arrangement in which a portion of an employee's nett pay is set aside each pay period, and then paid out to them on a future payslip. SimplePay has a built-in system item to record this.

Setting Up Savings Deductions

1. Go to Employees, and select the relevant employee.
2. In the Regular Inputs section, click Add.
3. Under Other, click Savings.
4. Enter the amount in the Regular deduction field.
5. Click Save.

Removing the Savings item

You cannot remove this item until the Closing balance on the previous finalised payslip is zero. If this item was added in error and you wish to remove it from the employee's profile completely, it must be removed from the first payslip on which it was added. Please contact our Support team for guidance.

More information can be found in the FAQ: Why can't I remove Savings from the payslip until the balance is paid out?

Editing the Savings Balance

Adding an existing balance

If an employee already has a savings balance from before SimplePay, you can capture it so that the correct balance shows on their payslip going forward.

1. In the Payslip Inputs section, click Savings.
2. Add the amount in the Balance Increase field.
3. Click Save.

Paying out the balance

1. In the Payslip Inputs section, click Savings.
2. Tick the Pay out on current payslip box to pay out the entire balance.
3. Optional:
   • If you need to pay out a partial amount, click Override, and enter the amount.
   • If the payment should not be paid out as part of the employee's Nett Pay, also tick the Paid out to third party box.
4. Click Save.

Allowance item on payslip

The savings payout appears as an Allowance on the payslip.

Setting a Once-off Deduction will override any regular deduction defined for this savings item – on the current payslip only.

If a savings payout happened outside of payroll, you can still record this on SimplePay. More information can be found in the FAQ: I paid out my employee's savings outside of payroll. How do I indicate this on SimplePay so that I can remove the Savings item?

🔍 FAQs

How does the Savings item work?

1. The employee's payslip is processed as usual.

2. The savings amount is deducted.

   After all statutory deductions have been calculated, the savings amount is deducted from the employee's nett pay. This is a voluntary deduction that the employee and employer have agreed to. This is essentially like setting money aside in a digital envelope to be paid out later.

3. The employee's savings are paid out.

   When it's time to pay out the savings (for example, when the employee leaves the company or when the savings agreement ends), the full balance is returned to the employee.

   It was the employee's money to begin with, and now it is being returned to them.