Employer deduction rules set capital, reserve, and remuneration formulas across companies, banks, co-operatives, and other employers. Deduction rules for labour-law purposes prescribe the sums to be deducted from the capital, reserves, and related financial components of different classes of employers at the commencement of the accounting year. For a company other than a banking company, the deductible amounts comprise preference share dividends for the year, 8.5 per cent of paid-up equity share capital, and 6 per cent of reserves shown in the balance sheet, subject to a special formula for foreign companies based on net fixed assets and current assets in India after specified liabilities are excluded. Corporations, co-operative societies, and other employers are subject to separate deduction formulas based on paid-up capital, invested capital, reserves, and, for certain employers, additional deductible amounts such as annuity deposits, partner remuneration, or remuneration to an individual or Hindu undivided family.