What This Process Does
- Creates a new Deduction Description and Deduction Account
Best Practice
- Use a Template when possible - Although using an Existing Deduction Description to Add a new one is NOT required, it IS recommended for a faster and more accurate setup
Add Deduction Description
- HR → Payroll → Setup → Deductions → Deduction Descriptions
- Load a SIMILAR Deduction Description or Click Add (+)
FIELDS | Opt. | Rec. | Req. | Description |
| Deduction Description ID | — | — | ♦ | Enter a Unique Name for the Deduction Description (REVIEW EXISTING Description IDs for Reference/Consistency with Setup) |
| Short Description | — | — | ♦ | Enter a Short Description for the Deduction Description (ONLY the First 9 Characters Display) |
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| Type Tab | ||||
FIELDS | Opt. | Rec. | Req. | Description |
| Deduction Type | — | — | ♦ | Load the Desired Deduction Type (Determines Mandatory/Voluntary Statuses and Tax-Sheltered Lanes) |
| Mandatory | — | — | ♦ | Auto-Populates from the Selected Deduction Type |
| Voluntary Computation Level | — | — | ♦ | Auto-Populates from the Selected Deduction Type |
| Lowest Cost Health Coverage | ♦ | — | — | Select IF Deduction Type is Lowest Cost Health Coverage |
| Coverage Code | ♦ | — | — | Choose the Desired Coverage Code in the Dropdown (optional) |
| Deduction Type Tax Shelter Lanes | — | — | ♦ | Auto-Populates from the Selected Deduction Type |
| Vendor Identification | — | — | ♦ | Load the Desired Vendor Identification (Required on the Deduction Description, but NOT used since the Amount will NOT be Paid through Vendor Withholding [similar to Direct Deposit]) |
| Address Identification | — | — | ♦ | Load the Desired Address Identification |
| Print on Separate Check | — | — | ♦ | Select to Print on a Separate Check (Deduction Amount Prints on a Separate Vendor Withholding Check INSTEAD OF Combining it with other Deductions for the SAME Vendor) |
| VW Advice | — | — | ♦ | Select to Include on the VW Advice Report |
| Transmittal Routing Number | — | — | ♦ | Enter the Destination Bank's Routing Number |
| DOL Code (applies to STATE Deduction Type) | ♦ | — | — | Enter the DOL Code (if applicable) |
| Identification Number (Local and State Tax) | ♦ | — | — | Enter the Identification Number (if applicable) |
| Identification | — | — | ♦ | Enter the Desired Identification (Groups Deductions together for Reporting and Ranging, including the Deductions by ID Report ~ Ex: Enter HEALTH and ALL Deductions with the SAME Identifier will be Included) |
| Employer ID | — | — | ♦ | Load the Desired Employer ID |
| W2 Deduction Type | — | — | ♦ | Load the Desired W2 Deduction Type (Determines HOW the Deduction Amount withheld will appear on the W2) |
| Benefit Plan Renewal Date | ♦ | Enter the Benefit Plan Renewal Date (if applicable) | ||
| Compute Tab | ||||
FIELDS | Opt. | Rec. | Req. | Description |
| Compute Type | — | — | ♦ | Choose the Desired Compute Type in the Dropdown (Determines HOW the Deduction will Calculate) |
| Use Start Date and Ending Date | ♦ | — | — | Select to Use a Start Date and Ending Date (if applicable) Enter the Desired Start Date and Ending Date |
| Use Gross Amount Limit ($ value) | ♦ | — | — | Select to Use a Gross Amount Limit (if applicable) Choose Calendar Year OR Fiscal Year in the Dropdown Enter the Desired Dollar Amount |
| Use Withholding Limit ($ value) | ♦ | — | — | Select to Use a Withholding Limit (if applicable) Enter the Desired Dollar Amount |
| Use Pay Period Limit | ♦ | — | — | Select to Use a Pay Period Limit (if applicable) NOTE: MUST Enter a Pay Period LIMIT in the Employee's Deduction Master |
| Allow Standard Deduction | ♦ | — | — | Select to Allow Standard Deduction (if applicable) Enter the Desired Dollar Amount |
| Allow Exemptions | ♦ | — | — | Select to Allow Exemptions (if applicable) Enter the Desired Dollar Amount |
| Range on Contract Months | ♦ | — | — | Select to Range on Contract Months (if applicable) Choose the Desired Months in the Dropdown (Ex: Choose SEPTEMBER to JUNE to only withhold the Deduction in these Months) |
| Opt. = Optional Rec. = Recommended Req. = Required | ||||
Flags Tab
- As a general rule, the following Flags should be Selected: Active, Expensed, Liability, Pay Withholding, and Electronic Transfer (Ex: IF the Deduction should be paid by a means other than check)
- Rate Types and Blocking Rates should be based on the particular Deduction being added
(Ex: IF the Deduction should compute on ALL PAY, the Flags should be Selected for Base, Overtime, Supplemental, and Nothing)
Description, Table Name, Computation, Rate Selection, Gross Amount, and Affect Select Tabs
- REVIEW the Data on all of these Tabs to ensure nothing needs to be Added, Changed, or Removed
- AFTER ALL INFORMATION IS COMPLETED ~ Click Save
Add Deduction Account
- An EXISTING Deduction Account can be used to Create an Account for the NEW Deduction
- Identify an EXISTING Deduction Description that has the SAME Deduction Account needed for the NEW Deduction, and one that has the SAME Reduce Net Setup as the NEW Deduction (Designates Deductions as EmployEE-Paid or EmployER-Paid)
- Highlight the EXISTING Deduction Description and Click Accounts
- Select the desired Account
- Click on the Magnifying Glass to the Right of the words Deduction Description ID:
- Load the NEW Deduction Description
- IF the Amount Withheld Field contains an Amount, CHANGE the Amount to $0.00 (Ensures the EXISTING Deduction Account Amount being withheld is NOT inherited)
- Click Save