Information

• The deduction record controls the General Ledger account, taxation, and the default calculation method
• In the employee deduction window, you can enter a deduction amount, a calculation method other than the default, and make the deduction automatic
• The settings on the employee record override the deduction record
• Enter the percentage amount as a whole number (for example: to calculate 1.25%, type 1.25 in the Percent box)
• Processing payroll doesn't automatically create Accounts Payable invoices to pay for deduction liabilities
• See steps to set up deductions for union employees

Set up the deduction

1. Go to Payroll, Setup, Deductions.
2. Type a Deduction ID with no spaces (for example, GARN for a garnishment).
3. Type the appropriate description in the Description box.
4. Press the TAB key and enter the applicable information.
   1. In the Deduction type box, select the deduction type. Unless this is a direct deposit deduction, select Normal.
   2. In the Printed description box, type a short description (up to six characters) to print on checks, forms, and reports.
   3. In the Liability account box, click List, select the liability account, and click OK.
   4. Select the Retain YTD totals at close year check box, if needed.
   5. For deductions that calculate consistently for all employees, select the default calculation method in the Calc method box.
   6. For deductions that calculate consistently for all employees, enter an amount, percentage, or formula.
   7. Select the appropriate Before employee taxes and Before employer taxes check boxes.
   8. Select the Before WC fringe box to exclude the deduction from the workers' compensation fringe basis.
5. Click Save, then Close.

Optional: Customize the deduction for each employee

1. Go to Payroll, Setup, Employees.
2. Click List, select the Employee, and click OK.
3. Press the TAB key twice and click Deducts.
4. Click List, select the deduction ID, and click OK.
5. Enter the applicable information:
   1. Select the calculation method to use, if it differs from the default on the deduction setup. For example, if you set the deduction calculation method to Flat amount, but this employee contributes a percentage of their gross pay.
   2. In the Amount box, type the flat amount or percentage for this employee, if it differs from the default.
   3. Select the Auto check box to have the deduction taken automatically when you process payroll.
   4. Select the Calc Frequency, if applicable.
   5. If required, type the correct limit information in the Limit, Limit Period, and Sequence columns.
6. Click Accept line, then Accept table.
7. Click Save, then Close.

What are the different types of calculation methods Payroll provides?

How do the calculation frequency check boxes affect checks when I process payroll?