What This Process Does

  • Provides a list of employees who do not have a particular deduction.

Best Practice

  • Recommendation - RDA recommends that you run the Employees without Deductions report with each payroll, to ensure that all employees, including any that have recently been hired or re-activated, have active tax deductions. This is a very important, proactive check because if a tax deduction is not active, that tax type and corresponding taxable wage cannot compute for the employee and will not appear on Form W-2.

Employees Without Deductions

  1. HR → Payroll → Start tab → Employees w/o Deductions
  2. Range on each tax deduction, one at a time, for Current employees with Active Deductions.
  3. Range on Deduction Type:
    • FEDERAL to FEDERAL
    • FICA to FICA
    • FICA-M to FICA-M
    • MEDICARE to MEDICARE
    • MEDICARE-M to MEDICARE-M
    • STATE to STATE
    • UNEMPLOYMENT to UNEMPLOYMENT
  4. If needed, additional ranging options are available.
  5. Click Print Report.
  6. If the report has no employees listed, it means all your current employees have active deductions for that tax, and no further action is necessary.
  7. If the report lists employees' names, it means those employees do not have active deductions for that tax; and you need to do one of the following:
    • If the employee is inactive, go to Query → Personnel Demographics → Status tab, and de-select the Current Employee flag.
    • If the employee is active and should have the tax deduction and corresponding taxable wage, go to Query → Personnel Demographics → Payroll → Deductions, and either activate the tax deduction if it's already in the employee's list of deductions, or add and activate it if it is not.
  8. Once you have verified that all active employees have active tax deductions as applicable, you can proceed with Compute Payroll.
  • NOTE: If you have multiple Employer IDs (EINs) then you would have separate tax deductions for each EIN. Considering this, it would be possible for no employees to show up when running the Employees w/o Deductions because they have at least one active deduction for one EIN, although it may not be the EIN for which they need the active deduction. Therefore it is also very important to verify your total number of employees against each tax deduction on the Deduction Register Summary to be sure that all employees have the deductions for the EIN being processed.