Deduction Types

In the payroll are many deductions or withholding from the net salary. All withholdings can be divided in following categories:

1. Consumer credits;
2. Tax enforcements;
3. Alimonies, compensations for damaged health, lost work capacity or compensation due to the death of a family supporter (hereinafter: alimonies);
4. Court ordered withholdings.

Withholdings are divided to categories in order to show the precedence order in which they are deducted. It is possible that an employee has already some withholdings and you receive another ruling. It is therefore required to have an order of precedence in which you will deduct from employees' salary.

Order of Enforcement

First, you have to withhold alimonies. Next, you have to deduct tax enforcements (VAT debt). They are followed by costumer credits and court ordered withholdings. The last two are deducted in the order of their arrival to the employer or payer of salary.

For example, if an employee has a credit deduction, the you will later receive a tax enforcement from the tax administration, the new deduction request has precedence to the credit deduction. You even have to stop to withdraw the credit installments if the tax enforcement will exceed the prescribed salary remaining.

Deductions up to which amount

Deductions up to which amount depend on the type of deduction. Deductions of the tax administration are subject to the Tax Procedure Act (ZDavP). Other deductions are subject to the Execution of Judgments and Civil Matters and Insurance of Claims Act (ZIZ). It is also required to take into account the Social Assistance Act (ZSV).

Tax enforcements are subject to the Tax Procedure Act (ZDavP) according to which you can deduct from employee's salary 1/3 of net salary. Here you also have to tae into consideration the Social Assistance Act (ZSV) that the employee must remain at least the amount of the minimum base salary (for example, if employees income is extremely low).

According to the Execution of Judgments and Civil Matters and Insurance of Claims Act (ZIZ) employees' salary can be deducted up to 2/3 o the net salary. In case of alimonies even up to 2/3 minimum salary. Here you also have to tae into consideration the Social Assistance Act (ZSV) that the employee must remain at least the amount of the minimum base salary. 

If the creditor has to support other family members as well, the amount of the minimum base salary will increase:
- for each adult family member for the amount of 0,7% of the minimum base salary;
- for a child for the amount of 0,3% of the minimum base salary;
- for one-parent family for the amount of 30% of the minimum base salary.

Check the Program will Run for Individual Deductions:

Alimony
-The remaining salary of the employee after the deduction of the alimony cannot be less than the amount of the minimum base salary.
-The remaining salary of the employee after the deduction of the alimony cannot be less than 2/3 of the net minimum salary.
- The amount of the alimony cannot exceed 2/3 of the net salary.

Tax Enforcements
-The remaining salary of the employee after the deduction of tax enforcements cannot be less than the amount of the minimum base salary.
-The amount of tax enforcements cannot exceed 1/3 of the net salary.

Credits
-The remaining salary of the employee after the deduction of the alimony cannot be less than the amount of the minimum base salary.
-The remaining salary of the employee after the deduction of the alimony cannot be less than the amount of the net minimum salary.
-The amount of the alimony cannot exceed 2/3 of the net salary.

Other Enforcements
-The remaining salary of the employee after the deduction of the alimony cannot be less than the amount of the minimum base salary.
-The remaining salary of the employee after the deduction of the alimony cannot be less than the amount of the net minimum salary.
-The amount of the alimony cannot exceed 2/3 of the net salary.

Examples of Minimum Salary Base Calculation:

Employee with no dependent employee members
Ruling of the tax administration
Deduction of the 1/3 of the net salary. To employee must remain at least 43,522,00 SIT of net salary.

Employee with no dependent employee members
Court ordered withholdings
Deduction of the 2/3 of the net salary. To employee must remain at least 43,522,00 SIT of net salary.

Employee with one dependent adult family member and one child
Ruling of the tax administration
Deduction of the 1/3 of the net salary. To employee must remain at least 87,043,40 SIT of net salary.
For the employee 43,522,00 + adult family member 43,522,00x0,7=30,465,40 + child 43,522,00x0,3=13,056,00 = 87,043,40

Pantheon Settings

First, enter in the register of  average salaries the minimum salary.

Next, define in the Credits panel of the Administration Panel | Settings | Program Parameters | Personnel | Payroll followings:

- Credit Type (Set for an individual credit a type according to which the program will run the check of the credit amount that will be deducted. If you leave the first Credit Type field in the table blank, the program will run a check on the basis of the minimum base salary).

- Minimum Base Salary (Minimum base salary is the lowest amount you have to payout to the employee after deductions. The minimum base salary is prescribed by the minister who responsible for the social security. the minister has to publish it in the Official Gazette of the Republic of Slovenia.).

- Use Provisions of Enforcements and Insurance Act (If you select the Use Provisions of Enforcements and Insurance Act option, the program will not only report irregularities between the amount of the credit and the allowed amount, but will also calculate the allowed amount of actual credits.).

Enter credits to an individual employee in the Credits panel of the Employee files | Position/Salary.

Once the payroll has been completed, you can report employees to whom credits were reduced or partially calculated (3K7 - Partially calculated credits).