Managing Income & Deduction Codes

 Accessing Income & Deduction Codes

1. Log in to XandaPay Enterprise.
2. Navigate to the Payroll menu on the left side.
3. Expand "Income & Deductions" and click on Income & Deduction Codes to view the existing entries.

Understanding the Income & Deduction Code List

The displayed list includes key details for each income or deduction item:

• Code – Unique identifier for the income or deduction.
• Pay Rule Type – Specifies whether it is an allowance (AL), leave-related payment (LV), insurance deduction (INS), etc.
• Description – Brief explanation of the income or deduction.
• Exempt ($) – Shows any exempt amount for the income or deduction.
• GL Code – General Ledger code for accounting purposes.
• Credit? – Indicates whether the item is a credit (positive amount) or a deduction.

Creating a New Income or Deduction Code

1. Click the New Income & Deduction Code button at the top.
2. In the form that appears:
   • Enter the Code (short identifier).
   • Provide a Description for clarity.
   • Select the Pay Rule Type (see list below for types).
   • Set the Exempt Amount (if applicable).
   • Enter the GL Code to link it to accounting records.
   • Check Credit? if it is an allowance rather than a deduction.
3. Click Save to create the new entry.

Editing an Existing Income or Deduction Code

1. Locate the income or deduction in the list.
2. Click on the entry to open its details.
3. Modify necessary fields such as the description, pay rule type, GL code, or credit status.
4. Click Save to update the changes.

Associating Pay Rules

Each income or deduction code can have pay rules assigned for proper payroll calculations.

1. Open an existing income or deduction code.
2. Navigate to the Associated Rules tab.
3. Click New Pay Rule, then:
   • Select a Rate Type (e.g., amount, percentage).
   • Define the Rate for the rule.(set it to 0 if non apply)
   • Set the Start and End Dates for validity.
   • Enter the Short Code (Use the same as previous Code)
   • Enter a Description (Same as the previous Description used)
4. Click Save to finalize the pay rule.

Applying Taxes to Income & Deduction Codes

Some incomes and deductions require tax deductions based on local laws.

1. Open an existing income or deduction code.
2. Navigate to the Taxes tab.
3. Select the Tax Code.
4. Define the validity period.( Start Date and End Date)
5. Click Save to apply the tax rule.

💡 Note: Taxes can vary based on local regulations. Ensure that tax rules align with applicable laws.

Understanding Pay Rule Types

XandaPay categorizes income and deduction codes using Pay Rule Types for easier classification. Below are the available types:

• AL – Used for general allowances (can apply to both wages and salaries).
• BLN – Bank loan-related deductions.
• BRVMT – Bereavement-related payments.
• HWRAL – Hours Worked Related Allowance, used in HWRAL mappings.
• INS – Insurance payments and deductions.
• LA – Late and absent-related deductions.
• LV – Employee leave-related payments.
• SA – Salary-specific rules.
• SICK – Uncertified Sick Pay rules.
• SLN – Staff loan only.
• SPLIT – Split payments.
• UNI – Union dues deductions.

💡 Tip: Choosing the correct Pay Rule Type ensures accurate payroll categorization and prevents errors.

Best Practices

✔ Use clear and consistent naming for all income and deduction codes.
✔ Regularly review and update codes as tax laws and company policies change.
✔ Ensure proper tax rules are applied to prevent compliance issues.
✔ Link the correct GL codes for accurate financial reporting.
✔ Use the correct Pay Rule Type to categorize earnings and deductions correctly.

By properly managing income and deduction codes in XandaPay, payroll administrators can ensure streamlined payroll processing, accurate accounting, and compliance with tax and labor regulations.