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Adding a reducing balance deduction to EXO Payroll (New Zealand)

A Reducing Balance deduction can be used to pay off a balance owed by an employee, such as court fines or a staff loan.

More user information is available online or as a Pdf through your software application

A Reducing Balance deduction reduces an outstanding balance each pay that is processed until the balance reaches zero. This type of deduction is commonly used to pay items such as outstanding court fines, over-due Child Support payments or staff loans.

To create a reducing balance deduction
  1. Log into the payroll company
  2. Go to the Maintenance menu then select Deductions
  3. Click on Add: F4
  4. The Code field will default a code number. If the deduction is to use a different code then enter the code to be used for this Deduction
  5. Enter a Name for the deduction. The name should be one that everyone can easily recognise and understand what the deduction is to be used for
  6. Set the Calculation Method to Reducing Balance
  7. Set the Type as Normal
  8. Enter a General Ledger Code if General Ledger is being used
  9. If required, set the Protected Pay Amount or Percentage in the relevant boxes. Place a tick in the "Make a part deduction" box so that the system can make a partial payment on the deduction. This could occur if the amount to be paid is less than the deduction or the deduction takes the pay under the protected pay threshold.
  10. If you are wishing to pay the deduction by Consolidated Direct Credit, tick the "Pay deduction by consolidated direct credit" box and fill in the necessary details.

    Due to the type of payments that the Reducing Balance deduction is used for, it is recommended that the "Pay deduction by consolidated direct credit" box is not ticked and that the direct credit information is entered when the deduction is assigned to the employee.


To assign the deduction to an employee
  1. Go to the File menu then select Open Employee or click on the Edit Employee button then select the appropriate employee
  2. Click on the Standard Pay tab
  3. Click on the Deductions button then click on the Add:F4 button
  4. Enter the code number of the Reducing Balance deduction
  5. In the Amount field enter the amount that is to be deducted each pay period
  6. In the Reducing Balance field enter the balance that the employee has remaining to pay off
  7. If the Amount being deducted each pay is to be paid to another organisation by direct credit, enter the appropriate details in the Direct Credit section
  8. Click on Save:F10


    Confirm that the correct details appear on the Deductions screen for the employee.

Need more help? You can open the online help by pressing F1 on your keyboard while in your software.

You can also find more help resources on the MYOB Exo Employer Services Education Centre for Australia or New Zealand.

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