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.
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/Return 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, Taxable Impact, Accounting, Pay Types, Deduction Amount By Frequency, and Life Insurance.
Base: Select the Wage Base from the pull-down to specify which wages or earnings are used when calculating the deduction or contribution. Options include:
- Gross: Uses gross wages to calculate the deduction or contribution amount. For example, Operating Engineer dues may calculate at 1.9% of gross pay excluding comp time and overtime. If an employee earns $20.00 per hour and has 80 eligible hours, the deduction would be $30.40.
- Days - Worked: Uses the number of eligible days worked to calculate the deduction or contribution amount. For example, a substitute dues deduction of $3.36 per day for 3 substitute days worked would total $10.08.
- Disposable: Uses disposable income wages to calculate the deduction or contribution amount.
- Disposable plus Health: Uses disposable income wages plus applicable health care costs to calculate the deduction or contribution amount.
- Hours - Paid: Uses paid hours to calculate the deduction or contribution amount. For example, an IBEW Pension deduction of $5.41 per paid hour with 88 paid hours would total $476.08.
- Hours - Worked: Uses worked hours only to calculate the deduction or contribution amount. For example, a Roofers Pension deduction of $3.43 for 8 worked hours would total $27.44.
- OASDI: Uses Social Security/Medicare wages to calculate the deduction or contribution amount.
- Salary: Uses salary-based wages to calculate the deduction or contribution amount.
- Taxable: Uses taxable wages to calculate the deduction or contribution amount.
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 Dollar Amount: Enter the maximum dollar amount that can be deducted or contributed for the specified benefit. Once the employee reaches this maximum amount, the deduction or contribution will no longer process for the selected calculation period or limit type. For example, a deduction configured with a calendar-year maximum stops calculating once the employee reaches the defined yearly limit.
Max Amount By: Select how the maximum amount is calculated; options include:
- Calendar: Calculates the maximum amount based on the calendar year.
- Fiscal: Calculates the maximum amount based on the fiscal year.
- Life: Calculates the maximum amount over the lifetime of the benefit.
- Monthly: Calculates the maximum amount per month.
Leave Percent: Enter the leave percentage of the wages, so if the deduction causes the employees 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.
Federal Min Wage: Enter the minimum federal wage threshold used to ensure deductions do not reduce the employees pay below the allowed federal minimum wage.
Effective Date, Amount, and Percent: Enter the Effective Date along with the applicable Amount and/or Percent values that should apply beginning on that date. Multiple effective-dated records can be added to maintain a history of deduction or contribution rate changes over time. During payroll processing, the system uses the record with the most recent effective date that is on or before the payroll check date to calculate the deduction or contribution amount. This allows districts to schedule future rate increases or maintain historical deduction calculations without overwriting previous values.
The Misc section is used to record additional processing rules, like vendor to charge, processing type, DOE frequency, etc.
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: Social Security, Retirement, Insurance, etc: 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.
Skip Payroll Invoice: Select Yes from the pull-down to prevent an Accounts Payable invoice from being generated during payroll posting for the selected deduction.
Insufficient Earnings: Select how the system handles insufficient earnings when a deduction is performed; options include:
- Skip: no arrears:If there are not enough earnings to cover the deduction, the system does not take any amount and does not track the missed deduction as arrears. The deduction is skipped entirely.
- Take available with arrears:The system deducts as much as possible from the available earnings and records the remaining unpaid amount as arrears. The arrears amount can be collected in future pay periods when sufficient earnings are available.
- Take available without arrears:The system deducts as much as possible from the available earnings but does not track the remaining unpaid amount as arrears. Any amount not deducted is essentially forfeited.
- Process other deductions then take available with arrears:The system first processes other deductions (likely based on priority order). After processing those, it deducts as much as possible from the remaining available earnings and records any unpaid portion as arrears to be collected in future pay periods.
- Process other deductions then take available without arrears:The system first processes other deductions. After that, it deducts as much as possible from the remaining available earnings but does not track the unpaid portion as arrears. The remaining amount is not collected in future pay periods.
Garnishment Type: Select the applicable Garnishment Type from the pull-down to determine how the deduction is prioritized, calculated, and limited according to federal and state garnishment rules. Options include:
- Government: Used for garnishments owed to government agencies, such as unpaid taxes (IRS, state tax liens), defaulted federal student loans, or administrative wage garnishments issued by a federal or state entity. These are usually non-court ordered and may have different rules for limits and priority.
- Child Support: Used for court-ordered wage garnishments related to child support cases. This category enforces specific legal limits, such as the maximum percentage of disposable income that can be withheld. Child support typically has highest priority among garnishments and may include support for multiple recipients.
- Chapter 13: Refers to Chapter 13 bankruptcy wage deductions. This type of garnishment is court-managed and typically takes a fixed portion of wages to repay creditors under a bankruptcy repayment plan. Chapter 13 deductions may override or pause other garnishments based on court instructions.
- All Other Garnishments: Covers any other wage garnishments not specifically listed above. Examples include creditor garnishments (credit card debt, loans), civil judgments, or liens unrelated to taxes, child support, or bankruptcy. These typically have lower priority than child support or government garnishments.
Garnishment Exempt Wages: Enter the amount of Garnishment Exempt Wages in the text box to exclude a portion of the employees wages from garnishment calculations, ensuring that only earnings above this amount are subject to deduction.
Loan Amont: Enter the loan amount allowed to be requested by employees if needed for a deduction.
The Taxable Impact section is used to control how a deduction affects federal wages, social security, retirement wages, and insurance.
Reduces 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.
Reduces 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.
Reduces Medicare: Select Yes or No from the pull-down to determine if the deduction reduces Medicare. Note: This only applies to employee paid deductions.
Reduces 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.
Reduces 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.
Considered Income: Select Yes or No from the pull-down to determine if the deduction amount is treated as taxable income and included in the employees gross wages for tax calculations.
The Accounting section is used to specify how a benefit is expensed in Finance.
Contribution/Deduction: Select whether the account settings defined here are for a contribution or a deduction from the pull-down.
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 Account: 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.
a. Select the Use Primary Position check box to ensure that the pay types and their linked deductions are assigned based on the employee's primary job position.
b. Enter the Enrollment Date For Today's New Deduction Assignments in the provided text box.
2. Click the Assign button in the Manually Assign section 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 from the corresponding pull-down to define the pay types should be linked to the opened deduction/contribution.
4. Press the Enter/Return key to save the line of data and click Apply.
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/Return 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 Min amount, which sets the minimum life insurance coverage used in calculations. If a flat dollar amount is not provided in the "Coverage" field and the calculated coverage (based on the multiplier) is below this value, the system increases it to meet the minimum; otherwise, the calculated coverage remains unchanged.
3. 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.
4. 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.
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.
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.
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. For example, an IBEW Pension deduction of $5.41 per hour with 80 regular hours and 8 holiday hours would total $476.08 (88 × 5.41).
- Hours - Paid (excluding holiday/vacation): Deductions based on all hours paid excluding holiday and vacation hours. For example, Plumbers union dues of $0.73 per hour with 64 regular hours, 8 holiday hours, and 16 vacation hours would total $46.72 (64 × 0.73). Note: The district must set up a Setup > District Codes > Deduction Processing Type that excludes holiday and vacation pay and assign it to the deduction.
- Hours - Worked: Deductions based on all worked hours only. For example, a Roofers Pension deduction of $3.43 for 8 worked hours would total $27.44 (8 × 3.43).
- Gross: Deductions based on gross pay excluding comp time and overtime. For example, Operating Engineer dues at 1.9% of gross pay with 80 eligible hours at $20.00 per hour would total $30.40. Note: The district must set up a Setup > District Codes > Deduction Processing Type that excludes comp time and overtime.
- Days - Worked: Deductions based on a daily rate for eligible substitute wages only. For example, substitute dues of $3.36 per day for 3 substitute days worked would total $10.08 (3 × 3.36).
- Disposable: Uses disposable income wages to calculate the benefit.
- Disposable plus Health: Uses disposable income wages plus health care costs to calculate the benefit.
- OASDI: Uses Social Security/Medicare wages to calculate the benefit.
- Taxable: Uses taxable wages to calculate the benefit.
- Gross: Select Gross to calculate the deduction or contribution based on the employee’s gross wages.
Amount: Enter the Amount 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 prorates 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 amount is reached, the benefit is no longer processed. For example, Social Security may have a maximum amount of $8,537.40 for the calendar year.
Max Amount By: Select how the maximum amount is calculated from the pull-down; options include Calendar year, Fiscal year, Life, or Monthly.
Leave Percent: Enter the leave percentage of the wages. If the deduction causes the employee’s pay to go below that percentage of earnings, the deduction will not process.
Leave Dollars: Enter the minimum dollar amount to deduct for a percentage-based benefit. For example, if the benefit is set to 5% and the calculation equals $14.96, but Leave Dollars is set to $20.00, then $20.00 is deducted.
Take Deduction or Minimum Percent: Enter a percentage to be deducted if the full deduction cannot be taken. This ensures that either the specified deduction amount or the minimum percentage will be applied, whichever is possible.
Min Wage: Enter an amount to act as a wage cutoff. If the employee’s remaining wages do not exceed this amount, the system will not process the deduction.
Effective Date, Amount, and Percent: Enter the Effective Date along with the applicable Amount and/or Percent values that should apply beginning on that date for the selected wage calculation. Multiple effective-dated records can be added to maintain a history of deduction or contribution rate changes over time. During payroll processing, the system uses the record with the most recent effective date that is on or before the payroll check date to determine the deduction or contribution amount. This allows districts to schedule future rate changes, update deduction amounts or percentages, and preserve historical payroll calculation records without overwriting previous values. If the deduction is configured with Can be overridden for employee set to No, the values entered here are used as the default calculation values during payroll processing.
The Misc section is used to record additional processing rules, like vendor to charge, processing type, DOE frequency, etc.
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.
Skip Payroll Invoice: Select Yes from the pull-down to prevent an Accounts Payable invoice from being generated for the selected deduction during payroll posting.
Insufficient Earnings: Select how the system handles insufficient earnings when a deduction is performed; options include Skip, Take the net after processing this deduction, or Take the net after processing all other deductions.
Garnishment Type: Select the type of garnishment from the pull-down menu. Options include:
- Chapter 13: Court-ordered wage garnishment under Chapter 13 bankruptcy.
- Child Support: Court-ordered child support deductions.
- Education: Garnishments related to student loans or education debt.
- IRS Tax Levy: Federal tax levy deductions from the IRS.
- All Other Garnishments: Any other types of garnishments not listed above.
Max Garnishment Percent: Enter the maximum percentage of an employees wages that can be garnished in this text field. This value sets the cap for the garnishment amount according to the type selected.
Loan Amount: Enter the loan amount allowed to be requested by employees if needed for a deduction.
The Taxable Impact section is used to control how a deduction affects federal wages, social security, retirement wages, and Insurance.
Reduces 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.
Reduces 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.
Reduces Medicare: Select Yes or No from the pull-down to determine if the deduction reduces Medicare. Note: This only applies to employee paid deductions.Reduces RetirementSelect Yes or No from the pull-down to determine if the deduction reduces retirement wages. Note: This only applies to employee paid deductions.
Reduces 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.
Considered Income: Select Yes or No from the pull-down to determine if the deduction amount is treated as taxable income and included in the employees gross wages for tax calculations.
The Accounting section is used to specify how a benefit is expensed in Finance.
Contribution/Deduction: Select whether the account settings defined here are for a contribution or a deduction 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.
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: 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 from the corresponding pull-down to define the pay types should be linked to the opened deduction/contribution.
6. Press the Enter/Return 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/Return key to save the line of data.
The Assigned To section displays the Deduction and Status of the deduction assigned to employees by employment record. This section can be used to review which employees currently have the deduction assigned, along with the current processing status of the deduction for each employment assignment.
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.
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, Taxable Impact, Accounting, and Auto Assign.
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.
Contribution/Deduction: Select whether the tax settings defined here are for a contribution or a deduction 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 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 benefits 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.
Status: Select the status of the deduction, such as Active or Inactive.
Can be overridden for employee: Select Yes from the pull-down to allow the deduction or tax setting to be overridden at the individual employee level.
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.
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.
Skip Payroll Invoice: Select Yes from the pull-down to prevent an Accounts Payable invoice from being generated during payroll posting for the selected tax deduction.
The Taxable Impact section is used to control how a deduction affects federal wages, social security, retirement wages, and insurance.
Reduces 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.
Reduces 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.
Reduces Medicare: Select Yes or No from the pull-down to determine if the deduction reduces Medicare. Note: This only applies to employee paid deductions.
Reduces 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.
Reduces Disability 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.
Considered Income: Select Yes or No from the pull-down to determine if the deduction amount is treated as taxable income and included in the employees gross wages for tax calculations.
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.
Contribution/Deduction: Select whether the tax item is treated as a Deduction or a Contribution from the pull-down. This determines how the tax is processed during payroll calculation and how it is applied to the employee and/or employer amounts.
- Deduction: The tax is withheld from the employees wages during payroll processing and reduces the employees net pay.
- Contribution: The tax is employer-paid and does not reduce the employees wages; instead, it is calculated as a district contribution during payroll processing.
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.
The Required Deductions tab is used to define deductions that are automatically applied during payroll processing based on employee eligibility or assignment rules. From this tab, users can select one or more deductions that should be treated as required. Once configured, these deductions are automatically included when payroll is calculated for eligible employees--meaning they do not need to be manually added to each employee record.
1. From the Payroll menu, click Deduction.
2. Click the Required Deductions tab.
3. Select the Deduction from the pull-down to mark it as required and automatically apply it during payroll processing for eligible employees.
4. Press Enter/Return to save the line of data.
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 name, Vendor Number, Status, as well as the number of Deductions assigned.
3. To add a vendor, select the vendor from Name the pull-down in the last row.
4. Press the Enter/Return key to save the vendor data.
The Vendor Number and Status populate automatically based on the vendors information pulled from Vendors/Customers.
5. Clcik # Assigned to view details in the Assigned To pop-up window, which includes the Deduction and Status.
a. Once your review is complete, click the white X to close the window.
6. Click the Name pull-down to change the selection, as needed.
7. Click the delete button (red minus sign) to remove a vendor. Note: You can only delete vendors that do not have deductions assigned.
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.
The Imputed Coverage Adjustments tab displays age-banded coverage reduction rules used to calculate imputed income for life insurance benefits. This tab allows districts to define coverage percentage adjustments based on an employees age (for example, reducing coverage to 70% at age 69). When applied, the system uses these adjusted coverage values to calculate imputed income accurately for older employees.
1. From the Payroll menu, click Deduction.
2. Click the Imputed Coverage Adjustments tab.
3. Enter the Over Age and Percent Coverage in the provided text fields to define the age at which coverage reductions take effect and the corresponding coverage percentage. The system will use these values to calculate imputed income for life insurance policies, ensuring accurate payroll tax calculations for employees whose coverage is reduced based on age.
4. Press the Enter/Return key to save the line of data.
5. To edit any of the data, click the applicale field and make the necessary changes.
Changes save automatically.
6. To remove a coverage adjustment entry, click the delete button (red minus sign).
