Click the Magnify button to see the pertinent fields.Create and maintain an employee's individualized Deductions information that is used by the system when computing payroll. If the Deductions Group Id is filled out in the main Employee record, the system will include both the Group Deductions and those specified on this tab.
401(k), Vacation, Dues, garnishments, etc.
This tab should be completed for each employee on your payroll, unless they are part of the Deductions Group specified in the main Employee record. In this case, additional deductions not included in the Deduction Group should be included on this tab.
Worker’s Comp Employee Portion: If you are implementing support for the employee portion of the Worker’s Comp Expense in the Worker’s Comp Category record, change the ending date to so that this deduction for Worker’s Comp will not be included as of the Payroll that includes the addition of the Deduction Id to the Worker’s Comp category.
Deduction Id:
Enter a valid Deduction Id (or double-click to select from your firm's list of Deduction records).
Tip: Don't Overlap Dates with Same Deduction Id
A specific Deduction Id should be used no more than once for the date range defined by the Start and End Dates. Click for Details.
Amount Type:
This field specifies what the Amount field represents. Double-click on this field to select from a list.
fixed (fixed amount in dollars)
hourly (hourly by hours worked in dollars)
hours paid (hourly by hours paid in dollars)
percent (percent of wages)
percent plus (percent of wages plus additional fringes)
standard (do NOT select: reserved for future use only)
Important Notes on Garnishments:
Deductions for garnishments are typically entered as a percent of wages.
Disposable pay calculations for US and Canadian Payroll users where the garnishment is a percentage of disposable pay are based on the settings of the Disposable Income fields in the Deductions records.
Amount:
The amount (per Amount Type): For example, 5.00 percent, $40 fixed, etc. If this field is left blank, the amount (if any) will default from the BASE Deduction record when the Compute Payroll process is run. The BASE Deduction Amount (if used) will trump any amounts entered here on the employee.
Ded Limit Type:
If deductions of this type have no dollar limit, enter n/a (or double-click on this field to select from a list). If deductions are capped by law or company policy, select the appropriate time period for the Limit (amount, pay period, monthly, annual, or quarterly). Please also see the Important Note in the Limit field below.
The Limit Type of ‘amount’ should be used to handle loan repayments and other miscellaneous deductions whose payback time frames span calendar years (the previous Limit Types of pay period, monthly, annual, and quarterly did not support this functionality). Typically, the Deduction Limit Type of ‘amount’ would be used with an Amount Type of ‘percent’ with the Limit set to the total amount of the loan.
Example:
In this example, a loan of 5000 is to be repaid at the rate of 5% per pay period. The following deduction could be set up:
Deduction Id: Loan
Ded Amount Type: percent
Amount: 5
Deduction Limit Type: amount
Limit: 5000
In this example, care must be taken to set the End Date far enough into the future that the loan can be repaid. When the Limit is reached (or the End Date is past), this Deduction will no longer be taken.
Disposable Limit: (click Magnify button to see field)
The maximum percentage of disposable income that may be garnished. This limit varies according to the type of garnishment being applied. Note: if this field is blank for a garnishment deduction, payroll taxes will NOT be deducted before the garnishment is assessed. We recommend setting this field to 99 unless a specific percentage is required. Click Disposable Limit Details for additional information.
Limit:
The dollar limit (if any) for deductions of this type. The system validates & enforces that the Limit Value must be 0 when the Ded. Limit Type = "n/a".
IMPORTANT NOTE: If the Employee's Deduction limit is 0, compute payroll uses the Deduction Limit and Deduction Limit Type from the BASE Deduction record. This being the case, then when setting the Deduction Limit Types (n/a, annual, pay period, etc) in the BASE Deduction, the BASE Deduction should contain the UNIVERSAL RULE that apply to ALL employees, if the deduction limit type varies by employee, then set the Deduction Limit Type to "N/A" in the BASE Deduction.
Start Date: End Date: (date format mmddyyyy)
The time period (pertaining to the Effective Dates of labor hours entered, not the Payroll Check date) this amount is valid (e.g., fiscal year, contract period, etc.) A Deductions Id may appear more than once in a table if the date ranges do not overlap. Use the End Date to stop a deduction or use an S in Cycle to skip the deduction(s).
Tip: Handling Deduction Changes
If this employee's deductions change, you would add a new Deduction line (or lines) with a Start Date corresponding to the first working day at the new deduction amount. The End Date of the old Deduction line (at the previous rate or amount) should be the last day worked at that rate and should correspond to the end of a Payroll Period.
C: (1 character)
Describes the deduction Cycle: m (monthly) p (pay period) a (annual) q (quarterly) etc. The deduction Cycle(s) are entered when running the Compute Payroll process to know when a deduction should be taken or skipped. To skip a deduction cycle, the Compute Payroll is run without that cycle code. For example, a cycle code of S can be used to skip the deduction by NEVER entering it in Compute Payroll.
Description
This display-only field defaults from the Deduction record.
The following fields enable check printing/processing capabilities for Employee PR Miscellaneous Deductions. This functionality is particularly useful for various types of garnishments (for child support payments, for example), as well as for deductions such as United Way.
Checks for Employee PR Deductions are printed using the Report PR Miscellaneous Deductions Check / Report PR Miscellaneous Deductions Check Detail functions. Note that these reports must be run after your regular payroll checks have been printed and posted.
Click the Magnify button to see the pertinent fields.
Vendor Id:
Enter the Vendor that the check generated from this deduction should be sent to. For example, in the case of a garnishment the Vendor might be a court.
Remit Description:
The Description that should appear on the check that is generated when the Report PR Miscellaneous Deductions Check / Report PR Miscellaneous Deductions Check Detail functions are run. For a garnishment, this might reference the court order number.
Remit Type:
This field determines whether or not multiple deductions will be will be combined then the checks are generated.
By Deduction: one check per deduction
By Employee: if multiple deductions exist for the same Employee / Vendor combination, one check for this Employee will be generated for the Vendor.
By Vendor: this option might be selected it the case of a charitable deduction. In this case, deductions for multiple employees would be combined on the same check.
Amount Type: and Amount
Deductions for garnishments are entered as a percent of wages (Amount Type = percent) but are calculated based on disposable income (less taxes).
Important Note: the Deduction Amount Type of ‘Standard’ is reserved for future use, and should NOT be selected.
Disposable Limit:
The maximum percentage of disposable income that may be garnished. This limit varies according to the type of garnishment being applied. Note: if this field is blank for a garnishment deduction, payroll taxes will NOT be deducted before the garnishment is assessed. We recommend setting this field to 99 unless a specific percentage is required. Thus, if three garnishments of 10% each are applied, and the maximum percentage that may be garnished in this case is 25%, one of the deductions will be ‘clipped’ to 5%. Note that both the Disposable Limit and the Limit (see above) will be observed.
Example:
Assume a judgment is issued that says 10% of disposable income should be garnished from each pay with an annual limit of $2,500. This case, Limit would be set to $2,500, Deduction Limit Type to percent, Amount to 10.0, and Disposable Limit to 10. If an employee has $1,000 of disposable income per week would generate a $100 deduction per week. After 25 weeks, the full annual amount of $2,500 has been deducted. Since the system looks at both the Limit and the Disposable Limit when Compute is run, the garnishment would not be taken in the 26th week.
In addition, the system now validates & enforces that the Limit Value must be 0, when Limit Amount Type = "n/a".
Priority:
This field determines the order in which deductions will be processed if the Disposable Limit is reached. Suppose that three garnishments of 10% each are in effect: one which a priority of 1, the next 2, and the third 3. If the maximum percentage that may be garnished in this case is 25%, the deduction with priority 3 will be ‘clipped’ to 5%.
Also See...
Employee Viewer Deduction Viewer Deduction Group Viewer
Labor Journal