What This Process Does

  • Creates a new Deduction Description and Deduction Account using an existing Deduction Description as a template.


Best Practice

  • Template - Although using an existing Deduction Description to add a new one is not required, it's recommended for a faster and more accurate setup.


Deduction Description Master

  1. Modules → HR → Payroll → Setup → Deductions → Deduction Descriptions
  2. Locate a Deduction Description that is most similar to the one that needs to be set up; doesn't have to be exact.
  3. Select the Deduction Description.
  4. Below are key fields to check and change as necessary for the new deduction.


Type Tab

FIELDSOpt.Rec.Req.Description
Deduction Deduction ID——♦Override the existing Deduction Description ID to give the new deduction a unique ID
Short Description——♦Assign a Short Description that is meaningful to the employee(s); typically, it is the Short Description that appears on employees' pay stubs (remember, only the first 9 characters display)
Deduction Type——♦Select the type that is appropriate for new deduction; Deduction Type determines Voluntary/Mandatory status, as well as tax-sheltered lanes
Vendor ID——♦Verify vendor is correct for new deduction; if not, delete the current Vendor ID, and use the magnifying glass to search for the appropriate Vendor ID
Address ID——♦Verify address for vendor is correct for new deduction; if not, delete the current address, and use the magnifying glass to search for the appropriate Address ID
Print on Separate Check——♦If selected, the deduction amount will print on a separate Vendor Withholding check, instead of combining with other deductions with the same vendor; flag or un-flag as appropriate for new deduction. Note:  This flag does not work with EFTs.
VW Advice——♦If selected, the deduction will be included in the Vendor Withholding Advice report printed from the Vendor Withholding module; flag or un-flag as appropriate for new deduction
Identification——♦Used to group deductions together for reporting and ranging purposes, including the Deductions by ID report. For ex., enter HEALTH, and all deductions with the same identifier will be included. Leave, change or delete as necessary.
W-2 Deduction Type——♦This field determines how the deduction amount withheld will appear on the W-2; change as necessary
Opt. = Optional  Rec. = Recommended  Req. = Required



Compute Tab

FIELDSOpt.Rec.Req.Description
Compute Type——♦Determines how deduction will calculate; verify for new deduction
Start and Ending Date♦——Select to enter dates for deduction to begin and end, as applicable; verify, change or remove for new deduction
Range on Contract Months———Select to add a range of contract months during which the deduction should be withheld; for ex., select SEPTEMBER to JUNE to only withhold the deduction in these months; will look at the calendar month set up in the Pay Master
Opt. = Optional  Rec. = Recommended  Req. = Required


Flags Tab

  • As a general rule, the following flags should remain on: Active, Expensed, Liability, Pay Withholding, and Electronic Transfer (if the deduction should be paid by a means other than check).
  • Including Rate Types and Blocking Rates should be based on the particular deduction being added; if the deduction should compute on all pay, then the flags should be on for Base, Overtime, Supplemental and Nothing.
  • Review Description, Table Name, Computation, Rate Selection, Gross Amount and Affect Select tabs, to make sure nothing needs to be changed or removed.
  • Once all changes have been made, click Save.


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 that is needed for the new Deduction Account, and one that has the same Reduce Net setup as the new deduction, as this flag designates deductions as being either employee or employer-paid.
  • Highlight the existing Deduction Description, click the Accounts button, and select the account.
  • Click on the magnifying glass to the right of the words Deduction Description ID, and locate the new Deduction Description, and select it.
  • If the Amount Withheld field contains an amount, change the amount to $0.00, so as not to inherit the existing deduction account amount withheld.
  • Click Save.