This utility allows users to set up default Deduction Types that will be available for selection when processing each employee’s payslip.  

1) To add a new Deduction Type – select Employer heading, Deduction Types on the menu toolbar, followed by Add.

• Enter a name for your deduction
• Choose the calculation method required using the drop down menu.
• If desired, enter a default amount for the deduction and its default repetition.
• Select which deductions are to be applied, according to HMRC ruling.

Click Save.

2) To view or edit a Deduction Type – select Deduction Types on the menu toolbar. Select the deduction from the listing and view/ amend accordingly. Click Save.

3) To delete a Deduction Type – first select Deduction Types on the menu toolbar. Select the deduction from the listing and click Delete on the menu toolbar. Click Yes to confirm you wish to delete the deduction.

There are 3 usage options when setting up a deduction type within the Employer tab; to include in the period it's added to only, repeat until removed or repeat each period until a total amount is reached. These can be set as default settings, but can also be adjusted when adding it to an employee's payslip.

When adding a deduction type to the payslip the default settings will apply, to adjust; you can add it to that period only, repeat until removed, repeat up to a date or repeat until a total amount has been paid. By choosing the underlined [date] or [a total amount] field, you will be prompted to enter the information.

Once a total amount has been entered & the payment added to the payslip you can see the total deductions taken to date and the balance remaining:

FAQs

Q. I have added a new deduction type to an employee's payslip, but it is not appearing on the Analysis reports. Why is this?

A. To ensure deductions appear in the Payroll Summary (or other reports):

1. Go to Employer > Deductions > Add and create the deduction type at employer level.
2. Next, go to the Payroll section, select the relevant employee, and add the deduction to their payslip under Additions & Deductions > Add.
3. Now, when you open the payroll summary (or any other report) and use 'Add/Remove Columns', you’ll be able to select this Employer Deduction Type under the 'Employer Items' section to display in your report.

Important note:

• Only deduction types that have been created at employer level and then added to employee payslips will be available in the Add/Remove Columns options.
• The description of the deduction must match exactly between the employer item and the payslip. If any extra text is added to the payslip description, BrightPay will not recognise it and will not include those figures in reporting.

Example: If your employer deduction is named ‘Uniform’, but on the payslip, it’s entered as ‘Uniform – May 2026’, the system will not match these descriptions, and the deduction will not show in reports.