How to Deduct Unpaid Leave

This guide explains how unpaid leave is deducted in payroll, covering different scenarios such as approved requests, absences, suspension, and troubleshooting incorrect deductions.

1. Deducting Approved Unpaid Leave Requests
2. Deducting Absences or No-Shift Days as Unpaid
3. Handling Suspension Cases as Unpaid Leave

1. Deducting Approved Unpaid Leave Requests

When an employee’s unpaid leave is approved, the admin must ensure the correct step is completed during payroll processing to apply the deduction.

To process unpaid leave:

Step 1

Go to Payroll (a) > Process (b) > Monthly (c).

Step 2

Select the correct Payroll Period, Pay Cycle, and Payment Date.

Tick Pull Unpaid Data (crucial to ensure the deduction is applied).

Process payroll as usual.

To verify:

Step 1

Go to Payroll (a) > Payroll Review (b) > Individual Payroll (c).

Step 2

Select the employee and check the payslip to confirm the deduction is accurate.

2. Deducting Absences or No-Shift Days as Unpaid

If you want employee absences or “no shift assigned” days to be deducted as unpaid leave, you can configure it in the Payroll Policy screen.

Step 1

Go to Settings (a) > Payroll (b) > Payroll Policies (c).

Step 2

Under section (2) Cut Off, enable:

• Pull Absent into Unpaid Leave
• Pull None into Unpaid Leave

Then, you must assign the correct Payroll Item for each option.

Important: Selecting a payroll item alone is not complete. The toggle must also be turned on, because both section work together to capture absences in payroll.

3. Handling Suspension Cases as Unpaid Leave

If an employee is suspended (e.g. 14 days), you can record it manually as unpaid leave through the Individual Transaction screen.

Step 1

Ensure you have a payroll item created for Unpaid Leave.

If it doesn’t exist yet, click Add New and create one named Unpaid Leave (or based on your policy).

Step 2

Go to Payroll (a) > Transaction (b) > Individual Transaction (c). Select the employee.

Step 3

Select the correct Transaction Month and Pay Cycle.

Step 4

Under the Unpaid tab, click Add, then enter the details.

Click Save.

Important: The transaction must be added before processing monthly payroll. If added afterward, it will not be pulled into payroll calculation.

Step 4

Process monthly payroll accordingly. You can verify the deduction in employee's payslip under deduction section.

We hope this explanation clarifies the matter. If you require further assistance, please don't hesitate to contact our support team.