Deduction Code Maintenance

 

Window Details

 

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Process Pension Plan and Cafeteria Plan Deductions

Overview

 

Apply Deduction Codes to Employees

Fields

 

Reimburse Employees

Report Sample

 

Set Up Nonqualified Deferred Compensation Plan Deduction

     

Set Up Qualified Dependent Care Deduction

 

Related Topics

 

 

Fringe Benefits

Apply Deduction to Employees

Calculation Based on Earnings Types

Tax Rules for Deduction Codes

 

Navigation

Select Payroll Setup menu > Deduction Code Maintenance.

Overview

Use Deduction Code Maintenance to create codes for voluntary payroll deductions (credit union deposits, insurance, etc.), and to establish calculation methods for each deduction. Voluntary deductions can be permanent and ongoing, or temporary and discontinued after the maximum amount of the deduction specified in the employee record has been reached (for example, repayment of a salary advance).

Do not use Deduction Code Maintenance for nonvoluntary deductions (federal and state withholding tax, Social Security, etc.). Nonvoluntary deductions are maintained in the tax calculation engine.

You can click the Apply button to validate a record and automatically write it to the Employee file for a specified range of employees. This saves time if you want to apply a deduction code or change the standard limit amount or rate for a group of employees.

You can calculate deductions based on specified earnings types by clicking the Earnings button and selecting the earnings types to use in the calculation.

After entering deduction codes, you can click the Print button to print the Deduction Code Listing.

Note When a deduction using the Percentage of Net Wages calculation method causes the check amount to be negative, the deduction amount is adjusted so that the check amount is equal to zero.

Fields

 

 

 

Deduction Code

Employee Pay Rate

Description

Certified Payroll Benefit Type

Deduction Type

Reset Balance at Year End

Calculation Method

Equal to Earnings Code

Standard Amount/Rate

Frequency of Deduction

Standard Limit

Automatically Apply Deduction to Earnings Code

Apply to W-2 Box

Deduction Accrual Account

Box 12 Code

Contribution Expense Account

Deduction Code to Use

Tax Rule