Custom Benefits and Deductions

You can set up custom benefits and deductions to match your company’s unique compensation structure. Whether that’s taxable benefits, non-cash perks, or special deductions for certain employees. This guide walks you through how to create new benefit/deduction rules and apply them to individual employees.  

To determine if a benefit or deduction is subject to taxes or withholding, please refer to the Canada Revenue Agency guide.   

Custom Benefits 

Step 1: Go to Settings. 

Step 2: Select Pay Rules. 

Step 3: Click Benefits. 

Step 4: Click Add New Rule. 

Step 5: Add your New Rule Name. 

Step 6: Enter a description for your reference. 

Step 7: Check Enabled to have the Pay rule enabled in every pay run. 

Step 8: Select the check boxes that apply to your rule for CPP, EI, Federal, Provincial, Occasional Earnings, and Vacationable. 

• CPP - Subject to CPP calculations. 

• EI - Not subject to EI calculations (For non-cash taxable benefits). 

• Fed - Subject to federal taxes. 

• Prov - Subject to provincial/territorial taxes. 

• Non-Cash - check this box if this is a non-cash benefit.  

• Vacationable - Subject to vacation calculation amounts. 

Step 9: Review your rule 

Step 10: Click Save. 

Adding to Employees 

Step 11: Once the rule has been created, go to Employees. 

Step 12: Click the three dots on the top right menu bar. 

Step 13: Click Profile. 

Step 14: Click Payroll. 

Step 15: Choose View Benefits. 

Step 16: Click Add Benefits. 

Step 17: Enter the Rule Name, Unit, and Per Pay Amount. 
 
Step 18: Click Continue. 

Custom Deductions 

Step 1: Go to Settings. 

Step 2: Select Pay Rules. 

Step 3: Click Deductions. 

Step 4: Click Add New Rule. 

Step 5: Enter New Rule Name, Description, and GL Code. 

Step 6: Check Enabled to have the rule run in every pay run. 

Step 7: Select the check boxes for CPP, EI, Federal, Provincial, Occasional Earnings, and Vacationable. 

• Reduce Pensionable - Reduces CPP calculation by deduction amount. 

• Reduce Insurable - Reduces EI calculation by deduction amount. 

• Reduce Tax - Reduces Income Tax calculation by deduction amount. 

• Non-Cash - No money deducted from the employee. 

Step 8: Click Save. 

Step 9: To add the deduction to your employee’s pay, follow the steps above. 

IMPORTANT: These are just a few examples of how to use our payroll rules to define custom benefits and deductions for your employees. If you have questions about the tax implications of various benefits and deductions, please consult your tax advisor, accountant or one of our Payroll Specialists.