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.
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.
2. Click the Calculated by Job tab.
The Calculated by Job table displays the Class, Sub class, and Title.
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.
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.
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.
| Field | Description |
|---|---|
| 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: Hours - Paid: Deductions based on all hours paid.
Hours - Paid: Deductions based on all hours paid less holiday and vacation.
Hours - Worked: Deductions based on all hours worked.
Gross: Deductions based on gross pay excluding comp time and overtime
Days - Worked: Deductions based on a daily rate for only eligible substitute wages.
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. |
| Amount | Enter the Amount being paid/deducted. |
| Daily Rate | Enter the Daily Rate being paid/deducted. |
| Hourly Rate | Enter the Hourly Rate being paid/deducted. |
| Percent | Enter the percentage being paid/deducted. |
| Can be overridden for employee | 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. |
| Max Amount by Year | 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 Amount by Fiscal or Calendar Year |
Select how the maximum amount is being calculated: by Calendar year by Fiscal year, Life, or Monthly from the pull-down. |
| Leave Percent | 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. |
| Leave 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 “Leave Dollars” is set to $20.00, then the $20 is taken. |
The Misc section is used to record additional processing rules, like vendor to charge, processing type, DOE frequency, 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 Plan | 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. |
| Processing 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. |
| DOE Frequency | Enter the number of times the benefit is processed in a normal year. |
| A/P 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. |
| Insufficient Earnings | Select how the system handles insufficient earnings when a deduction is performed; options include Skip, Create A/R invoice, or Capture when available. |
| Loan Amont | Enter the loan amount allowed to be requested by employees if needed for a deduction. |
The Reduces section is used to control how a deduction affects federal wages, social security, retirement wages, and insurance.
| Field | Description |
|---|---|
| Federal 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. |
| Social Security | Select Yes or No from the pull-down to determine if the deduction reduces Social Security. Note: This only applies to employee paid deductions. |
| Medicare | Select Yes or No from the pull-down to determine if the deduction reduces Medicare. 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. |
The Accounting section is used to specify how a benefit is expensed in Finance.
| Field | Description |
|---|---|
| Contribution/Deduction | Select whether the account settings defined here are for a contribution or a deudction from the pull-down. |
| Expense Object | Select the Object from the pull-down that should be used to expense the benefit. Note: This only applies to district paid benefits. |
| Distrubution Debit Account | Select the GL that should be used to debit the benefit from the pull-down. Note: This only applies to district paid benefits. |
| Distrubution Credit Account | 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. |
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.
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.
Select New Staff Position from the Auto Assign pull-down to assign specific deductions to new employee jobs for selected pay types only.
Select New Job Group from the Auto Assign pull-down to ensure that auto deductions are only triggered when a new group is created for an employee, not just any new job line within the same group.
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, 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.
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.
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.
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.
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.
6. To add a new deduction that is calculated by job, start entering information in the last row of the table.
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 Calculation, Misc, Reduces, Accounting, Pay Types, Deduction Amount By Frequency, and Life Insurance.
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.
2. Click the Calculated by Employment tab.
The Calculated by Employment table displays the Class, Sub class, and Title.
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.
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.
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.
| Field | Description |
|---|---|
| Base |
Select the wage Base from the pull-down, which is used to specify the salary basis for percentage based deductions/contributions; options include: Hours - Paid: Deductions based on all hours paid.
Hours - Paid: Deductions based on all hours paid less holiday and vacation.
Hours - Worked: Deductions based on all hours worked.
Gross: Deductions based on gross pay excluding comp time and overtime
Days - Worked: Deductions based on a daily rate for only eligible substitute wages.
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. |
| Amount | Enter the Amount being paid/deducted. |
| Daily Rate |
Enter the Daily Rate being paid/deducted. |
| Hourly Rate |
Enter the Hourly Rate being paid/deducted. |
| Percent | Enter the percentage being paid/deducted. |
| Can be overridden for employee |
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. If set to No, add the Effective date, Amount, and/or Percent in the provided text boxes. Once set the payroll run will prorate the rate by the number of days. |
| Max Dollar Amount |
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 Amount By |
Select how the maximum amount is being calculated: by Calendar year by Fiscal year, Life, or Monthly from the pull-down. |
| Leave Percent | 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. |
| Leave 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 “Leave Dollars” is set to $20.00, then the $20 is taken. |
| Take Minimum Percent | Enter a percentage here to be deducted if the full deduction cannot be taken. |
| Min Wage | Enter an amount here to act as a wage cutoff; if the employee doesn’t have a balance over this amount, then the system will not process the deduction. |
The Misc section is used to record additional processing rules, like vendor to charge, processing type, DOE frequency, 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 Plan | Select the applicable retirement plan from the pull-down. |
| Processing Type: Social Security, Retirement, Insurance, etc. | Select the type of deduction, such as Extra Federal Withholding or Earned Income Credit. |
| DOE Frequency | Enter the number of times the benefit is processed in a normal year. |
| A/P 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. |
| Insufficient Earnings |
Select how the system handles insufficient earnings when a deduction is performed; options include Skip, Capture when available, and Take Partial. |
| Loan Amount | Enter the loan amount allowed to be requested by employees if needed for a deduction. |
The Reduces section is used to control how a deduction affects federal wages, social security, retirement wages, and Insurance.
| Field | Description |
|---|---|
| Federal 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. |
| Social Security | Select Yes or No from the pull-down to determine if the deduction reduces Social Security. Note: This only applies to employee paid deductions. |
| Medicare | Select Yes or No from the pull-down to determine if the deduction reduces Medicare. 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. |
The Accounting section is used to specify how a benefit is expensed in Finance.
| Field | Description |
|---|---|
| Contribution/Deduction |
Select whether the account settings defined here are for a contribution or a deudction from the pull-down. |
| Expense Object |
Select the Object from the pull-down that should be used to expense the benefit. Note: This only applies to district paid benefits. |
| Distrubution Debit Account |
Select the GL that should be used to debit the benefit from the pull-down. Note: This only applies to district paid benefits. |
| Distrubution Credit Account |
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. |
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.
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. Select the Use Primary Position check box to assign deductions by primary position.
3. 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.
4. Enter the Enrollment Date For Today's New Deduction Assignments in the text box provided.
5. Select the Pay Type and Status from the corresponding pull-downs to define the pay types should be linked to the opened deduction/contribution.
6. Press the Enter key to save the line of data.
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.
6. To add a new deduction that is calculated by employment, start entering information in the last row of the table.
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 Calculation, Misc, Reduces, Accounting, Pay Types, and Deduction Amount By Frequency.
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.
2. Click the Taxes tab.
The Taxes table displays the Class, Sub class, and Title.
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.
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.
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.
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 |
|---|---|
| Contribution/Deduction |
Select whether the tax settings defined here are for a contribution or a deudction from the pull-down. |
| Can be overridden for employee |
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 employee’s 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. |
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:
|
| Tax 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. |
| A/P Cycle | Enter the cap amount of coverage. |
The Reduces section is used to control how a deduction affects federal wages, social security, retirement wages, and insurance.
| Field | Description |
|---|---|
| Federal 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. |
| Social Security | Select Yes or No from the pull-down to determine if the deduction reduces Social Security. Note: This only applies to employee paid deductions. |
| Medicare | Select Yes or No from the pull-down to determine if the deduction reduces Medicare. 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. |
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 |
|---|---|
| Expense Object | Select the Object from the pull-down that should be used to expense the benefit. Note: This only applies to district paid benefits. |
| Distribution Debit Account | Select the GL that should be used to debit the benefit from the pull-down. Note: This only applies to district paid benefits. |
| Distribution Credit Account | 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 Account | Select the GL that should be used to debit the deduction from the pull-down. Note: This only applies to employee paid deductions. |
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.
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.
6. To add a new tax, start entering information in the last row of the table.
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, Misc, Reduces, Accounting, and Auto Assign.
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.
2. Click the Vendors tab.
The table displays the Vendor.
3. To add a vendor, select the Vendor from the pull-down in the last row.
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.
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.