In Sage 50 CDN you can setup payroll deductions to apply to an employees paycheque. For this process you will need to be logged in as a user with Admin rights (or the Sysadmin) and be in Single User mode. With that done the deduction creation process takes place in three steps, similar to income or benefit creation in payroll.

The first step is to go to Setup at the top of the screen, then down to Settings. Payroll is the module you will want to go into, specifically the Deductions section. There you will see any existing deductions as well as numbered deductions. Choose one of the unused numbered deductions and change the name as needed, set Deduct By to Percent of Gross or Amount, and finally customize the Deduct After section to determine when the deduction will be applied in relation to various taxes. Click OK when you are done.

Second step is to go back to Setup and then into Settings, down to Payroll and then to Linked Accounts. In the Linked Accounts section go to Deductions. There you will need to set a Linked Account and a Payment Adjustment Account for the Deduction. Normally the linked account is a liability account created specifically for that deduction while the Payment Adjustment Account is usually the principal payroll bank account. If unsure about what account to use you can always contact an accountant or the CRA. Click Ok when all of that is setup.

Third and final setup is to go to the Employee Record and for any employees that need this setup go to the Deduction tab. There you can set the Use column which will determine whether to apply that deduction to the paycheque. Amount, or Percentage, will need to be configured depending on which one the deduction was set for. Once that is done click on Save and Close and your Deduction should be ready to go.