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Prerequisites
  • The employee exists under HR > Employee > Employee List.
  • A Salary Structure is assigned to the employee under HR > Salary Structure, ensuring the system can compute gross pay.
  • Deduction Types Configured
    • Under HR > Deduction Type (or Setup > Deduction Type), confirm you have entries like:
      • Statutory Tax
      • Pension Contribution
      • Health Insurance
      • Loan Repayment
      • Salary Advance
    • If a needed type is missing, click New in Deduction Type and define:
      • Name (e.g., “Tax Withholding 2025”)
      • Category (Statutory, Voluntary, Company-Provided)
      • Calculation Method (Fixed Amount, Percentage of Gross, or Custom formula).
  • Payroll Period and Settings
    • Ensure the Payroll Period (e.g., May 2025) is open under HR > Payroll Entry > Payroll Period List.
    • If deductions are salary-slab based (percentage tiers), confirm your Payroll Settings in Setup > Payroll Settings reflect applicable slabs and tax rules.

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Steps to Record a One-Time Deduction

Step 1: Navigate to Employee Deduction Entry
  1. Go to Deduction Entry List
    • In the CGIC App sidebar, click HR > Deduction Entry > Deduction Entry List.
    • This view shows all existing deduction entries (one-time and recurring).
  2. Click “New”
    • In the top-right corner, click New to open a blank Deduction Entry form.
Step 2: Fill in Deduction Details
  1. Select Employee
    • In the Employee field, search for and select the employee (e.g., “EMP-1023 – Jane Doe”).
  2. Enter Payroll Period
    • In Payroll Period, choose the relevant month/period (e.g., “May 2025”).
    • The CGIC App uses this period to calculate net pay for that cycle.
  3. Choose Deduction Type
    • In Deduction Type, pick from the dropdown (e.g., “Loan Repayment”).
    • The linked Deduction Type determines how the amount is processed (fixed or percentage).
  4. Specify Amount or Percentage
    • If the Deduction Type is Fixed Amount, enter the Amount (e.g., ₦50,000).
    • If it’s Percentage of Gross, enter the Percentage (e.g., 5%). The system calculates the deduction based on the employee’s gross pay for that period.
  5. Set Start and End Dates (for recurring deductions)
    • If this is a one-time deduction, leave End Date blank (the system processes it once).
    • For recurring entries (e.g., “Salary Advance — 6 Months”), set:
      • Start Date: First deduction month (e.g., 2025-05-01).
      • End Date: Last deduction month (e.g., 2025-10-31).
    • The CGIC App automatically posts the amount each month until the end date.
  6. Add Reference or Notes
    • In Reference (optional), link to a supporting document (e.g., “Loan Agreement #LA-2025-045”).
    • Use Notes to record any additional context (e.g., “₦300,000 loan disbursed on 2025-04-15; repayment over 6 months”).
  7. Save & Submit
    • Click Save to validate fields.
    • If no errors appear, click Submit.
    • The deduction entry status becomes Submitted, and the CGIC App logs who created it and when.
Step 3: Review and Approve Deduction (If Approval Workflow Applies)
  1. Check Status
    • After submission, the Deduction Entry status may be Pending Approval if your CGIC App has an approval workflow for certain deduction types (e.g., loans over a threshold).
  2. Open the Entry and Click “Approve”
    • As a Payroll Manager or designated approver, navigate to Deduction Entry List, filter by Status = Pending Approval.
    • Click the relevant entry, review details, and click Approve.
    • Approval routes the entry to Approved status; it’s now ready to be included in the next payroll run.
  3. Reject or Refer Back (Optional)
    • If information is incomplete, click Refer Back with comments so the creator can correct.
    • If a deduction is unauthorized, click Reject—the entry moves to Cancelled status.

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Steps to Record Recurring Deductions

Step 1: Create a Recurring Deduction Schedule
  1. Go to Recurring Deductions
    • In the CGIC App sidebar, click HR > Recurring Deduction > Recurring Deduction List.
    • This area defines multi-month or continuous deductions (e.g., monthly pension, health insurance).
  2. Click “New”
    • Open a blank Recurring Deduction form.
  3. Fill in Recurring Deduction Details
    • Employee: Select the employee.
    • Deduction Type: Choose the type (e.g., “Pension Contribution”).
    • Start Date: First payroll period to deduct (e.g., 2025-01-01).
    • Frequency: Set to Monthly (default) or another cadence if needed.
    • Amount or Percentage:
      • For fixed: enter the amount per month.
      • For percentage: enter percentage of gross pay.
    • End Date: When the deduction should automatically stop (e.g., 2050-12-31 or leave blank for indefinite).
  4. Save & Submit
    • Click Save, then Submit.
    • The system schedules deduction entries automatically each period without manual intervention.
Step 2: Monitor Scheduled Deductions
  1. View Recurring Deduction Status
    • In Recurring Deduction List, status shows Active or Expired.
    • Active means the schedule is still in effect; Expired means the End Date has passed.
  2. Edit or Cancel a Recurring Deduction
    • To change the schedule (amount, percentage, end date), open the record and click Edit (if still a draft) or Amend (if already submitted).
    • After making changes, click Save and Submit.
    • To stop a recurring deduction prematurely, click Cancel. That stops future postings but retains history of deductions already processed.
  3. Review Deduction Ledger
    • When payroll runs, check Payroll Entry ▶️ Payroll Entry List for each period to confirm the deduction was applied under Deductions section of the payslip.
    • If a deduction didn’t post, verify the recurring schedule’s Start Date, End Date, and Frequency.
Step 3: Include Deductions in Payroll Run
  1. Run Payroll for the Period
    • Navigate to HR > Payroll Entry > New.
    • Select Employee, Payroll Period, and verify all earnings and allowances appear correctly.
  2. Scroll to Deductions Section
    • Under Deductions, you’ll see:
      • One-Time Deductions: those recorded manually under Deduction Entry.
      • Recurring Deductions: automatically pulled from Recurring Deduction schedules.
      • Statutory Deductions: like tax, if your payroll settings generate them based on salary slabs.
  3. Verify Deduction Amounts
    • Check each deduction line: Deduction Type, Amount, and Status (e.g., Pending, Approved).
    • If a deduction is missing or incorrect, update the underlying Deduction Entry or Recurring Deduction before finalizing payroll.
  4. Submit Payroll Entry
    • Click Save, then Submit. The CGIC App:
      • Calculates Net Pay = Gross Pay − Total Deductions.
      • Posts accounting entries (Debit Salary Expense, Credit Deductions Payable or Cash/Bank for net payout).
    • Download or email payslips to employees that display detailed deduction breakdowns.