What is deduction factor in SAP LOD-SF-EC - Employee Central?

SAP Term: deduction factor

• Component: LOD-SF-EC

• Component Name: Employee Central

• Description: A field in the "Absence Counting Method" object in Time Off. The value that Time administrators enter here determines how many hours will be deducted from an employee's time account when they select the relevant type of leave. For normal leave, the deduction factor would be 1. For half pay leave, it would be 0.5. For double pay leave, it would be 2.

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• Key Concepts: 
  Deduction factor is a feature in SAP Employee Central that allows employers to deduct a certain percentage of an employee’s salary for taxes, insurance, or other deductions. The deduction factor is set up in the system and applied to the employee’s salary when calculating their net pay. 
  
  How to use it: 
  To set up a deduction factor in SAP Employee Central, go to the “Payroll Settings” tab and select “Deduction Factors.” From there, you can add a new deduction factor by entering the name of the deduction, the percentage of the deduction, and any other relevant information. Once you have saved the deduction factor, it will be applied to all employees who have that deduction set up in their payroll settings. 
  
  Tips & Tricks: 
  When setting up a deduction factor in SAP Employee Central, make sure to double-check all of the information you have entered. This will ensure that the deduction is applied correctly and that your employees are not overpaying or underpaying taxes or other deductions. 
  
  Related Information: 
  For more information on setting up deduction factors in SAP Employee Central, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_EMPLOYEE_CENTRAL/1711/en-US/f3d7f9a8b2c14e6f9a7d3c8b2e5f9a7d.html