Deduction

Identifies the deduction, typically an abbreviated, easily recognizable version of the full description. This entry may contain 16 characters.

Note: This code displays on employee pay checks.

Full description of the deduction Code.

Note: This code displays on employee pay checks.

Start date of the deduction code. Typically this date is well in the past and used for all deduction codes during the initial setup.

Once the deduction code is saved, this date is used to create an Effective Dates range located directly above the Start Date.

Three options: Standard, Deferred Compensation and Pension. Click in the field to make your selection from a drop-down list.

ID and name of the vendor to whom this deduction is paid.

Determines the order in which the deduction is taken from an employee's check.

This sequence may be changed at the employee level.

The available numbers are 1 through 999. Generally, give the more important deductions the lower numbers, so they are taken first.

If the amount of an employee's check is inadequate to cover all deductions, the higher numbered deductions may be held until the next pay check.

Identifies the deduction as a garnishment. This check box lets you set up only one deduction, i.e., child support, then override the vendor at the employee level.

If the deduction is set up as a garnishment, you need to fill in an applicable employee's garnishment information (Case Number and Amount) to validate the employee in a pay batch.

Credit Distribution

Identifies the account to be credited with the amounts deducted from the pay checks.

The Account or the G/L Account requires an entry. If you select an Account only, the account combines with an employee's organization set to create a complete G/L account when payroll is run. If you select a G/L Account, the account is credited when using this deduction code when payroll is completed.

Determines how the deduction amount calculates. The available options are Amount per Hour, Annual Rate Steps, Flat Amount, Flat Percent, Hourly Rate Steps, Pay Rate and Percent of Annual. Click in the field to select the option from a drop-down list.

Different calculation methods enable different fields or tabs on the Deduction Steps Entry pop-up (Details button):

• Selecting Amount per Hour enables the Hours Codes and Pre-Tax Deductions tabs on the Deduction Details Entry pop-up once the deduction is saved.

  The Amount per Hour method calculates a deduction based on the amount entered on the deduction code multiplied by the number of hours worked.

• Selecting Annual Rate Steps enables the Include Longevity check box and the Deduction Steps and Pre-Tax Deduction tabs on the Deduction Details Entry pop-up once the deduction is saved.
• California customers only

  Selecting CA Additional EPMC enables the Percentand Maximum fields and the Excluded Taxes and Used Deduction Amounts tabs on the Deduction Details Entry pop-up once the deduction is saved.

  This calculation method multiplies the used deduction amount by this deduction amount. It does not take the gross.

  Selecting CalPERS enables the Percent, Maximum and Deduction Gross Limit Amount fields; the Include Longevity and Include Certification check boxes; and the Excluded Deductions, Excluded Shifts, Excluded Special Assignments, Excluded Taxes, Hours Codes and Added Deductions tabs on the Deduction Details Entry pop-up once the benefit is saved.

  Contributions stop when wages subject to the deduction selected hit the gross amount entered in the Deduction Gross Limit Amount field.

  This calculation method gives you the ability to select a deduction that is be added to the gross and multiplied by this deduction code.

• Custom Union Dues enables the Percent, Minimum and Maximum fields and the Deductions Steps, Excluded Deductions, Excluded Shifts, Excluded Special Assignments, Excluded Taxes, Hours Codes, Pre-Tax Deductions, Used Deduction Amount and Added Deduction tabs on the Deduction Details Entry pop-up once the deduction is saved. This calculation method applies to union dues collected on a percentage of the previous month's wages.

  The payroll calculation for this deduction amount is as follows:

  Total work hours * employee’s primary pay rate (as of the pay ending date) * percent per hour.

  The total work hours equal the total work hours during the previous month, based on the month of the check date and the hours code related to the deduction.

  The deduction amount is checked against the Minimum and Maximum pay amounts, along with the existing limit functionality. Click the Calculation button to open the Deduction Details Entry page and select the hours codes to be used in this calculation.

  For most customers, the license component for this calculation is unchecked, so that it does not display on the Calculation Method drop-down. For Custom Union Dues to appear on the drop-down, the component must be checked.

• Flat Amount enables the Amount field and the Excluded Deductions, Excluded Taxes and Pre-Tax Deductions tabs on the Deduction Details Entry pop-up once the deduction is saved.
• Flat Percent enables the Percent, Maximum and Deduction Gross Limit Amount fields; the Include Longevity and Include Certification check boxes; and the Excluded Deductions, Excluded Shifts, Excluded Special Assignments, Excluded Taxes, Hours Codes, Pre-Tax Deductions and Overtime Maximum tabs on the Benefit Details Entry pop-up once the benefit is saved. Contributions stop when wages subject to the deduction selected hit the gross amount entered in Deduction Gross Limit Amount field.
• Hourly Rate Steps enables the Excluded Deductions, Excluded Taxes and Pre-Tax Deductions tabs on the Deduction Details Entry pop-up once the deduction is saved.

• Selecting Pay Rate enables the Excluded Special Assignments and Pre-Tax Deduction tabs on the Deduction Details Entry pop-up once the deductions is saved.

  The Pay Rate method calculates a deduction based on a multiplier of an employee's effective pay rate on the pay ending date.

• Percent of Annual enables the Pre-Tax Deductions tab on the Deduction Details Entry pop-up once the deduction is saved.

  The Percent of Annual method calculates a deduction based on a percentage of an employee's annual base pay rather than the actual earnings for a pay period. The actual calculation is as follows:

  Based on the pay group, deduction code frequency and the year of the current pay batch's check date, the number of regular pay batches is determined.

  The projected annual salary is then divided by the number of regular pay batches to determine the deduction gross.

  Finally, the deduction gross is multiplied by the percentage defined on the deduction code or the override amount defined on the employee to determine the deduction amount.

If the deduction amount or percentage changes for each employee, you may leave these fields blank and fill in the information for each employee.

Cap set for the maximum deduction amount to be taken per check, regardless of the percentage being used; for example, if a check amount is $500, the flat percent is 10% and the Deduction Maximum is $45, the system takes only $45.

Sets the payroll calculation process to stop including overtime hours after a selected number of hours have been used in the calendar year. This field displays when the benefit or deduction Calculation Method is Flat Percent.

The Deduction Details Entry pop-up includes an Overtime Maximum tab to let you select the hours codes to be associated with the overtime maximum. The hours codes selected on this tab also need to be selected on the Hours Codes tab.

Displayed and enabled when the Calculation Method is Flat Percent or CalPERS. Contributions stop when wages subject to the deduction selected hit the gross amount entered in this field.