Deduction

The Deduction screen is used to set up the valid deduction and contribution codes that can be assigned to employees for payroll purposes. Examples are federal taxes, social security, medicare, health insurance, etc.

Calculated by Job

The Calculated by Job tab allows users to create deductions that are calculated by job, which can also be set up per employee via Human Resources > Employee > Deductions > Calculated by Job.

1. From the Payroll menu, click Deduction.

Deduction

2. Click the Calculated by Job tab.

The Calculated by Job table displays the Class, Sub class, and Title.

Deduction

The class can be set up via Setup > District Codes > Deduction Classes tab.

3. Select the Active Job Deductions Only check box to view the active deductions only. This check box is selected by default. Clear the check box to view inactive deductions, as well.

Deduction

Inactive deductions will not show a green check mark in the Active column.

4. Click Show arrow to view deduction details, such as Who Pays, Amount, Percent, Per Staff, Wage Base, etc.

Deduction

In the deduction pop-up window, select the applicable options from the pull-downs and enter the correct information in the text boxes provided. See the sections below for definitions for each section and setting in the pop-up window.

Wage Base

The Wage Base section is used to specify the salary basis for percentage based deductions/contributions. Valid values include:

  • Gross - Use gross pay wages to calculate the benefit.
  • Disposable - Use disposable income wages to calculate the benefit. 
  • Disposable plus Health - Use disposable income wages, which normally does not include health care, plus the health care cost to calculate the benefit.
  • OASDI - Use Social Security/Medicare wages to calculate the benefit.
  • Taxable - Use taxable wages to calculate the benefit.
Field Description
Who Pays Select who pays the deduction, the Employee or the District.
Amount Enter the Amount being paid/deducted.
Percent Enter the percentage being paid/deducted.
Per Staff If Yes is selected from the pull-down, the default benefit amount and percentage can be overridden at the employee level. If No is selected, the default amount and percentage are the only values that will be applied.
Wage Base  

Select the Wage Base from the pull-down, which is used to specify the salary basis for percentage based deductions/contributions; options include:

Gross - Use gross pay wages to calculate the benefit.

Disposable - Use disposable income wages to calculate the benefit. 

Disposable plus Health - Use disposable income wages, which normally does not include health care, plus the health care cost to calculate the benefit.

OASDI - Use Social Security/Medicare wages to calculate the benefit.

Taxable - Use taxable wages to calculate the benefit.

Max

Enter the maximum dollar amount that can be deducted or contributed for the specified benefit. Once this maximum dollar amount is reached the benefit is no longer processed. For example Social Security has a maximum amount of $8,537.40 for the calendar year.


Max By Select how the maximum amount is being calculated: by Calendar year or by Fiscal year from the pull-down.
Leave % Enter the leave percentage of the wages, so if the deduction causes the employee’s pay to go below that percentage of earnings then it will not process.
Min Dollars Enter the minimum of dollars that was taken for a percentage based benefit. For example, if the benefit is set to 5% and the calculation comes out to $14.96, but the “Min Dollars” is set to $20.00, then the $20 is taken.
Insufficient Earnings Select the steps that should be taken if the employees don't have sufficient funds in order to complete the deduction, such as Skip, Create A/R Invoice, or Capture when available.
Loan Amount Enter the loan amount in order to set up the applicable loan.
Accounting

The Accounting section is used to specify how a benefit is expensed in Finance. In addition the “Reduces” flags are used to control how a deduction affects federal wages, FICA wages, retirement wages, and Insurance.

Field Description
Object Select the Object from the pull-down that should be used to expense the benefit. Note: This only applies to district paid benefits.
Debit Select the GL that should be used to debit the benefit from the pull-down. Note: This only applies to district paid benefits.
Credit Select the GL that shoud be used to credit the benefit from the pull-down. Note: This only applies to district paid benefits.
Employee Debit Select the GL that should be used to debit the deduction from the pull-down. Note: This only applies to employee paid deductions.
Cash Replacement Select the Cash Replacement GL from the pull-down to ensure the cash GL isn’t impacted.
FTAX Select Yes or No from the pull-down to determine if the deduction reduces federal taxes. Note: This only applies to employee paid deductions.
FICA Select Yes or No from the pull-down to determine if the deduction reduces FICA wages. Note: This only applies to employee paid deductions.
Retirement Select Yes or No from the pull-down to determine if the deduction reduces retirement wages. Note: This only applies to employee paid deductions.
Insurance Select Yes or No from the pull-down to determine if the deduction reduces insurance wages. Note: This only applies to employee paid deductions.
Misc

The Misc section is used to record additional processing rules, like vendor to charge, deduction type for reporting, life insurance, etc.

Field Description
Status Select the status of the deduction, such as Active or Inactive.
Vendor Select the applicable vendor from the pull-down defined on the Vendors tab.
Retirement Select the applicable retirement plan from the pull-down which is used in state reporting and W2s. These are defined via Setup > District Codes > Retirement tab.
Deduction Type Select the type of deduction, such as Extra Federal Withholding or Earned Income Credit. The type selected here drives state reporting and calculations. The type here is defined via Setup > District Codes > Deduction Type tab.
Coverage Enter the amount of life insurance from which the employee is provided for this particular benefit code. This will be used for the group term life payroll calculation.
Coverage Cap Enter the cap amount of coverage. If a flat dollar amount is not provided for life insurance (using the ”Coverage” field) then this field, along with the multiplier field, is used to calculate the life insurance coverage amount. Fill in the maximum life insurance amount that an employee can be covered for with this particular benefit code.
Coverage Multipliier Enter the coverage multiplier. If a flat dollar amount is not provided for life insurance (using the ”Coverage” field) then this field, can be used to specify a multiplier of the employee’s yearly salary that will be used to calculate his/her life insurance coverage amount. For example putting a 2 in this field, and then adding this benefit to an employee who makes $60,000/year would calculate out to $120,000/year in life insurance.
DOE Freq Enter the number of times the benefit is processed in a normal year.
Cycle Select the pay cycle from the pull-down from which this benefit is being processed. For example, the pay cycle insurance might be one a month even though there are two payroll processed a month. This allows for the payment schedule of invoices to be managed in finance. Cycles are defined via Setup > District Codes > A/P Cycles tab.

Prepay Select Yes or No from the pull-down if the benefit is pre-pay benefit. For example health insurance is typically paid a month in an advance.
Note: This is informational only and does not affect payroll directly.
Pay Retirees Select Yes or No from the pull-down if the benefit is processed for retiree employees. Note: This is informational only and does not affect payroll directly.
ACA Offer Select the ACA Offer from the pull-down. The selection made here is for informational purposes only.
Pay Types

The Pay Types section is used to define the pay types that are automatically added to benefits when an employee is assigned a job with the pay type.

Deduction

1. Select Yes or No from the Auto Assign pull-down to decide whether or not employees assigned to jobs with pay types linked to deductions, as defined below, are automatically assigned with said deductions.

You also have the option to select New Jobs Only to assign specific deductions to new employee jobs for selected pay types only.

2. Click the Assign button to run through all the employees with jobs tied to the pay types listed below so the deduction/contribution can be add to their job on demand if one hasn't already been assigned.

The Employees pop-up window displays the employees impacted by the manually assigned deduction including the Employee name, Job, the date Entered (active deduction date), Dropped date (the date the deduction ended), the amount of the deduction per Pay Period, the Limit (what is this?), and the Type (Calendar year or Fiscal Year).

3. Select the Pay Type and Status from the corresponding pull-downs to define the pay types should be linked to the opened deduction/contribution.

4. Press the Enter key to save the line of data.

Deduction Amount By Frequency

The Deduction Amount By Frequency section is typically set in the “Amount” field in the “Wage Base” section of the screen. If the district processes employees’ payroll using a multiple frequencies (i.e. teachers are paid semi-monthly and administrators monthly) then the amount paid per pay run might differ for the same deductions. This section allows the user to specify different rates depending on the pay frequency of the employees.

Deduction

1. Select the Frequency for which the deduction should be applied from the pull-down.

2. Enter the Deduction Amount in the provided text box.

3. Press the Enter key to save the line of data.

Life Insurance

1. Enter the amount of life insurance Coverage from which the employee is provided for this particular benefit code. This will be used for the group term life payroll calculation.

Deduction

2. Enter the Coverage Cap amount. If a flat dollar amount is not provided for life insurance (using the ”Coverage” field) then this field, along with the multiplier field, is used to calculate the life insurance coverage amount. Fill in the maximum life insurance amount that an employee can be covered for with this particular benefit code.

3. Enter the Coverage Multipiller. If a flat dollar amount is not provided for life insurance (using the ”Coverage” field) then this field, can be used to specify a multiplier of the employee’s yearly salary that will be used to calculate his/her life insurance coverage amount. For example putting a 2 in this field, and then adding this benefit to an employee who makes $60,000/year would calculate out to $120,000/year in life insurance.

5. Click the white X to close the pop-up window.

Deduction

6. To add a new deduction that is calculated by job, start entering information in the last row of the table.

Deduction

7. Select the Class from the pull-down, enter the Sub class, and enter the Title in the provided text box.

8. Press the Enter key to save the deduction. Then, click the arrow in the Show column to enter additional information as described in the following sections: Wage Base, Accounting, Misc, Pay Types, Deduction Amount By Frequency, and Life Insurance.

Calculated by Employment

The Calculated by Employment tab allows users to create deductions that are attached to a job and processed only if the attached job is processed. Deductions can also be set up per employee via Human Resources > Employee > Deductions > Calculated by Employment.

1. From the Payroll menu, click Deduction.

Deduction

2. Click the Calculated by Employment tab.

Deduction

The Calculated by Employment table displays the Class, Sub class, and Title.

Deduction

The class can be set up via Setup > District Codes > Deduction Classes tab.

3. Select the Active Employee Deductions Only check box to view the active deductions only. This check box is selected by default. Clear the check box to view inactive deductions, as well.

Deduction

Inactive deductions will not show a green check mark in the Active column.

4. Click Show arrow to view deduction details, such as Who Pays, Amount, Percent, Per Staff, Wage Base, etc.

Deduction

In the deduction pop-up window, select the applicable options from the pull-downs and enter the correct information in the text boxes provided. See the sections below for definitions for each section and setting in the pop-up window.

Wage Base

The Wage Base section is used to specify the salary basis for percentage based deductions/contributions. Valid values include:

  • Gross - Use gross pay wages to calculate the benefit.
  • Disposable - Use disposable income wages to calculate the benefit. 
  • Disposable plus Health - Use disposable income wages, which normally does not include health care, plus the health care cost to calculate the benefit.
  • OASDI - Use Social Security/Medicare wages to calculate the benefit.
  • Taxable - Use taxable wages to calculate the benefit.
Field Description
Who Pays Select who pays the deduction, the Employee or the District.
Amount Enter the Amount being paid/deducted.
Percent Enter the percentage being paid/deducted.
Per Staff If Yes is selected from the pull-down, the default benefit amount and percentage can be overridden at the employee level. If No is selected, the default amount and percentage are the only values that will be applied.
Wage Base

Select the Wage Base from the pull-down, which is used to specify the salary basis for percentage based deductions/contributions; options include:

Gross - Use gross pay wages to calculate the benefit.

Disposable - Use disposable income wages to calculate the benefit. 

Disposable plus Health - Use disposable income wages, which normally does not include health care, plus the health care cost to calculate the benefit.

OASDI - Use Social Security/Medicare wages to calculate the benefit.

Taxable - Use taxable wages to calculate the benefit.


Max

Enter the maximum dollar amount that can be deducted or contributed for the specified benefit. Once this maximum dollar amount is reached the benefit is no longer processed. For example Social Security has a maximum amount of $8,537.40 for the calendar year.

Max By Select how the maximum amount is being calculated: by Calendar year or by Fiscal year from the pull-down.
Leave % Enter the leave percentage of the wages, so if the deduction causes the employee’s pay to go below that percentage of earnings then it will not process.
Min Dollars Enter the minimum of dollars that was taken for a percentage based benefit. For example, if the benefit is set to 5% and the calculation comes out to $14.96, but the “Min Dollars” is set to $20.00, then the $20 is taken.
Insufficient Earnings Select the steps that should be taken if the employee doesn’t have sufficient funds in order to complete the deduction, such as Skip, Create A/R Invoice, or Capture when available.
Loan Amount Enter the loan amount in order to set up the applicable loan.
Accounting

The Accounting section is used to specify how a benefit is expensed in Finance. In addition the “Reduces” flags are used to control how a deduction affects federal wages, FICA wages, retirement wages, and Insurance.

Field Description
Object Select the Object from the pull-down that should be used to expense the benefit. Note: This only applies to district paid benefits.
Debit Select the GL that should be used to debit the benefit from the pull-down. Note: This only applies to district paid benefits.
Credit Select the GL that should be used to credit the benefit from the pull-down. Note: This only applies to district paid benefits.
Employee Debit Select the GL that should be used to debit the deduction from the pull-down. Note: This only applies to employee paid deductions.
Cash Replacement Select the Cash Replacement GL from the pull-down to ensure the cash GL isn’t impacted.
FTAX Select Yes or No from the pull-down to determine if the deduction reduces federal taxes. Note: This only applies to employee paid deductions.
FICA Select Yes or No from the pull-down to determine if the deduction reduces FICA wages. Note: This only applies to employee paid deductions.
Retirement Select Yes or No from the pull-down to determine if the deduction reduces retirement wages. Note: This only applies to employee paid deductions.
Insurance Select Yes or No from the pull-down to determine if the deduction reduces insurance wages. Note: This only applies to employee paid deductions.
Misc

The Misc section is used to record additional processing rules, like vendor to charge, deduction type for reporting, life insurance, etc.

Field Description
Status Select the status of the deduction, such as Active or Inactive.
Vendor Select the applicable vendor from the pull-down.
Retirement Select the applicable retirement plan from the pull-down.
Deduction Type Select the type of deduction, such as Extra Federal Withholding or Earned Income Credit.
Coverage Enter the amount of life insurance from which the employee is provided for this particular benefit code. This will be used for the group term life payroll calculation.
Coverage Cap Enter the cap amount of coverage. If a flat dollar amount is not provided for life insurance (using the ”Coverage” field) then this field, along with the multiplier field, is used to calculate the life insurance coverage amount. Fill in the maximum life insurance amount that an employee can be covered for with this particular benefit code.
Coverage Multipliier Enter the coverage multiplier. If a flat dollar amount is not provided for life insurance (using the ”Coverage” field) then this field, can be used to specify a multiplier of the employee’s yearly salary that will be used to calculate his/her life insurance coverage amount. For example putting a 2 in this field, and then adding this benefit to an employee who makes $60,000/year would calculate out to $120,000/year in life insurance.
DOE Freq Enter the number of times the benefit is processed in a normal year.
Cycle Select the pay cycle from the pull-down from which this benefit is being processed. For example, the pay cycle insurance might be one a month even though there are two payroll processed a month. This allows for the payment schedule of invoices to be managed in finance. Cycles are defined via Setup > District Codes > A/P Cycles tab.
Prepay Select Yes or No from the pull-down if the benefit is pre-pay benefit. For example health insurance is typically paid a month in an advance. Note: This is informational only and does not affect payroll directly.
Pay Retirees Select Yes or No from the pull-down if the benefit is processed for retiree employees. Note: This is informational only and does not affect payroll directly.
ACA Offer Select the ACA Offer from the pull-down. The selection made here is for informational purposes only.
Pay Types

The Pay Types section is used to define the pay types that are automatically added to benefits when an employee is assigned a job with the pay type.

Deduction

1. Select Yes or No from the Auto Assign pull-down to decide whether or not employees assigned to jobs with pay types linked to deductions, as defined below, are automatically assigned with said deductions.

You also have the option to select New Jobs Only to assign specific deductions to new employee jobs for selected pay types only.

2. Click the Assign button to run through all the employees with jobs tied to the pay types listed below so the deduction/contribution can be add to their job on demand if one hasn't already been assigned.

3. Select the Pay Type and Status from the corresponding pull-downs to define the pay types should be linked to the opened deduction/contribution.

4. Press the Enter key to save the line of data.

Deduction Table
Deduction

1. Select the Frequency for which the deduction should be applied from the pull-down.

2. Enter the Deduction Amount in the provided text box.

3. Press the Enter key to save the line of data.

5. Click the white X to close the pop-up window.

Deduction

6. To add a new deduction that is calculated by employment, start entering information in the last row of the table.

Deduction

7. Select the Class from the pull-down, enter the Sub class, and enter the Title in the provided text box.

8. Press the Enter key to save the deduction. Then, click the arrow in the Show column to enter additional information as described in the following sections: Wage Base, Accounting, Misc, Pay Types, and Deduction Table.

Taxes

The Taxes tab allows users to create benefits that are not tied to a specific job and are processed every time the employee is paid. In addition, the calculations are based on all of the employees paid jobs in the payroll run. Tax deductions can also be set up per employee via Human Resources > Employee > Deductions > Taxes.

1. From the Payroll menu, click Deduction.

Deduction

2. Click the Taxes tab.

The Taxes table displays the Class, Sub class, and Title.

Deduction

The class can be set up via Setup > District Codes > Deduction Classes tab.

3. Select the Active Taxes Only check box to view the active taxes only. This check box is selected by default. Clear the check box to view inactive taxes, as well.

Deduction

Inactive taxes will not show a green check mark in the Active column.

4. Click Show arrow to view tax details, such as Who Pays, Amount, Percent, Per Staff, Wage Base, etc.

Deduction

In the taxes pop-up window, select the applicable options from the pull-downs and enter the correct information in the text boxes provided. See the sections below for definitions for each section and setting in the pop-up window.

Tax Table Attributes

The Tax Table Attributes section allows users to define how the tax table for particular benefits are defined. For example, some tax tables are based on marital status, so if the benefit’s tax table is set up based on marital status then that field will need to be set to “Yes." The information logged here is then reflected via Payroll > Maintenance > Tax Tables.

Field Description
Who Pays Select who pays the deduction, the Employee or the District.
Per Staff Select Yes or No from the pull-down to determine if the benefit amount can be overridden at the employee level.
Use Martial Status Select Yes or No to use the employees marital status in determining the taxes deducted from pay checks.
Uses Multiple Jobs

Select Yes from the pull-down to set up tax tables for employees with multiple jobs as well as employees without multiple jobs via Payroll > Maintenance > Tax Tables tab.

Uses Withholding Allowance Select Yes from the pull down If the benefit has a withholding allowance that is used in the calculation.
Uses Payroll Frequency Select Yes from the pull down If the benefit’s tax table is based on pay frequency.
Accounting

The Accounting section is used to specify how a benefit is expensed in Finance. In addition the “Reduces” flags are used to control how a deduction affects federal wages, FICA wages, retirement wages, and Insurance.

Field Description
Object Select the Object from the pull-down that should be used to expense the benefit. Note: This only applies to district paid benefits.
Debit Select the GL that should be used to debit the benefit from the pull-down. Note: This only applies to district paid benefits.
Credit Select the GL that should be used to credit the benefit from the pull-down. Note: This only applies to district paid benefits.
Employee Debit Select the GL that should be used to debit the deduction from the pull-down. Note: This only applies to employee paid deductions.
Fed Withholding Select Yes or No from the pull-down to determine if the deduction reduces federal taxes. Note: This only applies to employee paid deductions.
FICA Select Yes or No from the pull-down to determine if the deduction reduces FICA wages. Note: This only applies to employee paid deductions.
Retirement Select Yes or No from the pull-down to determine if the deduction reduces retirement wages. Note: This only applies to employee paid deductions.
Disability Ins Select Yes or No from the pull-down to determine if the deduction reduces disability insurance wages. Note: This only applies to employee paid deductions.
Misc

The Misc section is used to record additional processing rules, like vendor to charge, deduction type for reporting, life insurance, etc.

Field Description
Status Select the status of the deduction, such as Active or Inactive.
Vendor Select the applicable vendor from the pull-down.
Wage Base

The Wage Base pull-down is used to specify the salary basis for percentage based deductions/contributions. The options displayed in the pull-down include:

  • Gross - Use gross pay wages to calculate the benefit.
  • Disposable - Use disposable income wages to calculate the benefit. 
  • Disposable plus Health - Use disposable income wages, which normally does not include health care, plus the health care cost to calculate the benefit.
  • OASDI - Use Social Security/Medicare wages to calculate the benefit.
  • Taxable - Use taxable wages to calculate the benefit.
Retirement Select the applicable retirement plan from the pull-down.
Deduction Type Select the type of deduction, such as Extra Federal Withholding or Earned Income Credit.
DOE Benefit Frequency Enter the number of times the benefit is processed in a normal year.
Cycle Enter the cap amount of coverage.
Auto Assign

Auto assign is used to specify if a benefit is to be automatically added to all employees who are hired by the district.  Unlike the “Calculated by Job” benefits, this flag is not tied to specific pay types.

Deduction

1. Select Yes or No from the Auto Assign pull-down to automatically add a select benefit to all employees who are hired by the district.

2. Click the Assign button to manually assign the benefit.

5. Click the white X to close the pop-up window.

Deduction

6. To add a new tax, start entering information in the last row of the table.

Deduction

7. Select the Class from the pull-down, enter the Sub class, and enter the Title in the provided text box.

8. Press the Enter key to save the tax. Then, click the arrow in the Show column to enter additional information as described in the following sections: Tax Table Attributes, Accounting, Misc, and Auto Assign.

Vendors

All vendor codes are set up via Purchasing/Accounts Payable > Vendor/Customers from which the valid vendors for benefits can be defined here on the Vendors tab.

1. From the Payroll menu, click Deduction.

Deduction

2. Click the Vendors tab.

Deduction

The table displays the Vendor.

Deduction

3. To add a vendor, select the Vendor from the pull-down in the last row.

Deduction

4. Press the Enter key to save the vendor.

5. Click a pull-down to change your selection.

6. Click the delete button (red minus sign) to remove a vendor.

Uncollected Deductions

The Uncollected Deductions tab displays employees and their deductions that are in arrears to the district. In order for deductions in arrears to display, the deduction needs to be set to Capture when available from the “Insufficient Earnings” pull-down of Calculated by Job tab > Wage Base section. The uncollected deduction will be taken on the next payroll run for which the employee is paid, assuming they earned enough money to cover the uncollected deductions from the previous pay run.