Employee deductions

Select Employee Information > Payroll > Employee Deduction to manage employee pay deductions.

Deductions are withholdings from pay other than taxes, such as insurance premiums, savings plan contributions, union dues, loan repayments, tool purchases for the job, tax deferred contributions, charitable contributions, and wage garnishments.

If you establish a deduction or benefit link in Payroll Setup, the system automatically adds deduction information that is related to the insurance or savings enrollments that are active and current.

Comments

The list at the top of the page contains all the pay agency/pay group combinations for the employee. Before you enter deduction code information, select the correct Pay Agency/Pay Group combination.

Record List—The record list shows you each deduction code set up for the employee. You may see deduction codes with plus signs. This indicates the system has automatically added these deductions because the code's property was set to automatically add the deduction to each employee which you define in Auto Add when you define properties for the deduction code. Before you exit the page, click Save to save the added records.
Start and End Dates—These dates determine the period in which the deduction is withheld from this employee. When you perform any payroll process that uses a payment date, such as calculate or finalize payroll, the system finds only those deduction codes that fall between the start and end dates, and performs the process using those codes. For example, you set up the deduction code 401(k) Plan A as of 1/1/09. When you run a payroll on or after 1/1/09, the employee has this deduction withheld. If you run a payroll before 1/1/09, the employee will does not have this deduction withheld because the payment date does not fall between 1/1/09 and Forever, the default value.
Deduction Code and Description (Display only)—The deduction code list contains all the deduction codes that have already been set up and that are active (unexpired) as of the Effective date you entered in the Find dialog box. When you select a deduction code from the list, HR/Payroll displays the description automatically.

If you receive a court order to garnish an employee’s wages, add the deduction code for that type of garnishment to the employee’s deductions, and then configure the properties for the specific garnishment order.

Deduct Frequency—The frequency at which the deduction is withheld. For example, if you deduct union dues from the last check of the month (even though the employee is paid bi-weekly), set your pay period frequency to 2nd Period of the Month. The deduction cycle frequency list contains all the calendar frequencies that are active for the Pay Group you selected.
Comments—Information about the deduction code that you are defining.
Show Inactive—Use this indicator to see both active and inactive codes in the record list.
Status—Determines whether an employee's deduction code is shown when you are entering batch transactions for the employee. This enables you to set up the code with the appropriate information, but not display it in batch transaction data entry. To not display it in the employee's record, choose Inactive.
Override GL Account—The general ledger accounts associated with each deduction code are established when the deduction code is set up. However, you can override those accounts and charge the deduction for a specific employee to other general ledger accounts.
Debit Main Account (Display only)—The main account that originates from the debit full account string.
Debit Full Account—Enables you to enter an override for the entire general ledger account to be debited. Click the Find icon to open the GL Segment Override dialog box and enter the GL Debit Full Account override. Any overridden segments will supersede segments at the payroll code, main account, or organization level.
Credit Main Account (Display only)—The main account that originates from the credit full account string.
Credit Full Account — Enables you to enter an override for the entire general ledger account to be credited. Click the Find icon to open the GL Segment Override dialog box and enter the GL Credit Full Account override. Any overridden segments will supersede segments defined at the payroll code, main account, or organization level.
EFT Account—Select the account number for the EFT payments. The EFT Account number originates from the Direct Deposit Account set up for the selected employee.
Properties—The following table describes all properties that apply to an employee's deduction code.

Property	Description	Status
Agency Contact Info	Information that is specified in the court order.	Optional
Agency Contact Name	Information that is specified in the court order.	Optional
Allocate Employee Amounts	Allocate employee deductions to multiple GL accounts based on either the hours or earnings ratio. The allocation method (hours or earnings) is determined by the system setting Allocate EE withholdings and ER liabilities.	View Only
Allocate Employer Credits	Allocate the credit portion of the employer contributions to multiple GL accounts based on either the hours or earnings ratio. The default is N (No), which indicates the amount is associated with the primary position for costing. The allocation method (hours or earnings) is determined by the system setting Allocate EE withholdings and ER liabilities.	View Only
Allocate Employer Debits	Allocate the debit portion of the employer contributions to multiple GL accounts based on either the hours or earnings ratio. If you set this property to N (No), amounts use a single GL account based on primary position. The allocation method (hours or earnings) is determined by the system setting Allocate EE withholdings and ER liabilities.	View Only
Allocation Indicator	Reserved for future use. See the following properties: —Allocate Employee Amounts —Allocate Employer Credits —Allocate Employer Debits	View Only
Arrears 12 Weeks or Greater	Information that is specified in the child support court order (Y/N). The Arrears 12 Weeks or Greater property and the Supports Multiple Families property determine the appropriate CCPA percentage.	Optional
Automatic Add Indicator	Indicates whether the deduction code will be automatically added to a new employee's record.	Optional
Case Number	Information that is specified in the court order.	Required
Child Medical Required	Information that is specified in the child support court order. Used for all child support garnishment library codes.	Optional
Court Name	Information that is specified in the court order.	Optional
Destination (FIPS) Code	The Federal Information Processing Standards (FIPS) numeric code that is specified in the court order.	Optional
Disclosed Number of Dependents	Information that is specified for a creditor garnishment in an employee-provided document, which is specific to North Dakota, South Dakota, and Tennessee.	Required
EE Percent of Disposable Inc.	If Employee Current Amount is not specified or is 0, withhold this percentage of the calculated Disposable Income (Deduction Basis).	Required
Employee Amount	Dollar amount for flat amount deduction.	Optional
Employee Current Amount	The amount to withhold that is specified in the court order.	Required
Employee Goal Amount	Maximum cumulative amount for flat amount deduction. If there is no employee goal for the deduction amount, do not enter zero. Instead, enter all 9's (for example, 99999999.99). The total amount to be garnished that is specified in the creditor garnishment court order.	Optional
Employee Past Due Amount	The arrears to be garnished, as specified in the child support court order.	Required
Employee Percentage of Gross	If Employee Current Amount and the EE Percent of Disposable Inc. are not specified or are 0, withhold this percentage of the Gross Wages.	Required
Employer Amount	Standard amount to be paid by the employer. Short-term disability and life insurance may be employer-paid. In the case of health insurance or 401(k) plans, this entry indicates the formula that determines the amount to be paid by the employer.	View Only
Employer Goal Amount	A limit or cap amount for the deduction. For example, an employee may choose to have a limit of $100 deducted toward a loan or garnishment. This property is useful when percentages are used and the exact time when the limit will be reached is unknown.	View Only
Employer Max Percent Indicator	When enabled, the Maximum Employer Amount is a percentage of the wage basis. When disabled, the Maximum Employer Amount is a flat employer contribution amount.	Optional
Employer Percentage of EE Amt	Percentage of the employee deduction that is contributed by the employer. For example, if a 401(k) plan is set up so that for every dollar the employee contributes, the employer contributes twenty-five cents, this property value is set at 25%.	View Only
Filing Status (MJ, MS, SI, HH)	Applicable only to a Federal Tax Levy deduction, this is the filing (or marital) status of the employee: MJ—Married-Filing Jointly MS—Married-Filing Separately SI—Single HH—Head of Household	Required
Goal End Date	The date on which the goal for this deduction ends. This date is compared to the payment date.	Required
Goal Start Date	The date on which the goal for this deduction begins.	Optional
Head of Family	Information that is specified for a creditor garnishment in an employee-provided document (Y/N), which is specific to Florida, Missouri, and Nebraska.	Required
HSA Single Plan Indicator	When set to Y (Yes), the Health Savings Account deduction uses the Federal Limits for employees enrolled in an employee only plan. When set to N (No), the Health Savings Account deduction uses the Federal Limits for employees enrolled in an Employee+1 or family plan.	Optional
Judgment Date	Information that is specified in the court order.	Optional
Jurisdiction	Information that is specified in the court order.	Optional
Lien Number	Identifies the deduction for third-party garnishment services. It must be unique to the employee.	Optional
Loan Number	If this deduction is for a loan, enter the loan number.	Optional
Maximum Employee Amount	Calculation rule for the maximum employee amount.	Optional
Maximum Employer Amount	Maximum cumulative employer contribution amount or percentage. If Employer Max Percent Indicator is disabled, this is a flat employer contribution amount. If Employer Max Percent is enabled, this is a percentage of the wage basis.	Optional
Medical Support Indicator	Indicates whether medical insurance is required, which is specified in the child support court order. This property is used only for the Child Support EFT library code.	Required
MPI Number	Information that is specified in a North Carolina Child Support court Order.	Optional
Multiple Support Orders	Does the employee have multiple child support garnishments? (Y/N) Specific to North Carolina. This property and the Arrears 12 Weeks or Greater property determine the appropriate CCPA percentage.	Required
Non-Custodial Parent Name	If this deduction is for child support, enter the name of the employee.	Required
Non-Custodial Parent SSN	If this deduction is for child support, enter the social security number of the employee.	Required
Number of Exemptions	Applicable only to a Federal Tax Levy deduction, this is the number of exemptions claimed by the employee for this deduction. The default value is 1.	Required
Obligee Name	Information that is specified in the child support court order.	Optional
Payee Address	Information that is specified in the court order.	Optional
Payee Address City	Information that is specified in the court order.	Optional
Payee Code	Identifies the deduction for third-party garnishment services. Must be unique within the system.	Optional
Payee Contact Info	Information that is specified in the court order.	Optional
Payee	Information that is specified in the court order.	Optional
Payee Address State	Information that is specified in the court order.	Optional
Payee Address ZIP	Information that is specified in the court order.	Optional
Payment Period	Used by third-party garnishment services in conjunction with Payment Schedule to determine when the payment is due.	Optional
Payment Schedule	Used by third-party garnishment services to determine when the payment is due. Pay Date Next Month Current Month Week Day	Optional
Plaintiff	Information that is specified in the court order.	Optional
Prorate Percent	The Prorate Percent property is required to calculate a child support deduction when you enter an Employee Current Amount, an EE Percent of Disposable Inc., or an Employee Percentage of Gross. When the employee has multiple child support garnishments, this property is used to ensure that each order receives an amount in proportion to the scheduled amount, in the event that there is not enough Disposable Income to cover all child support garnishments.	Required
Rate Factor	Factor on which timesheet deduction is calculated. For example, the rate factor for overtime pay is 1.5; the rate factor for double time pay is 2.0; and so on.	View Only
Restart Goal at Year-End Indicator	Indicates that a new goal amount must be entered at year end.	Optional
Sole Support of Household	Information that is specified for a creditor garnishment in an employee-provided document (Y/N), which is specific to Alaska.	Required
Spousal Support	Information that is specified in the child support court order (Y/N), which is specific to Louisiana.	Required
Supports Multiple Families	Information that is specified in the child support court order. (Y/N) The Supports Multiple Families property and the Arrears 12 Weeks or Greater property determine the appropriate CCPS percentage.	Optional
Withholding Order	This number indicates the order in which the Payroll system withholds taxes and deductions from the employee's pay. Set the Withholding Order property for each tax or deduction code used by your organization to achieve the desired withholding order. Changes to the Withholding Order property are made at the code, pay agency, pay group, or employee level. Comments Changes to the Withholding Order property for taxes cannot be set at the code level because they will be overridden with the legislative update. Taxes or deductions with the Withholding Order property set at 0 (zero) are the first to be taken, and then those set at 1, 2, 3 and so on. If the withholding order is the same for multiple taxes or deductions, the internal identification number (idno) determines the withholding order. Taxes are withheld prior to deductions when the Withholding Order property is the same. When you set up the withholding order for taxes or deductions, take into consideration that you may be adding others in the future. Therefore, do not use consecutive numbers, so that you can insert others without reordering the existing taxes or deductions. For example, use 2, 4, 6... or 5, 10, 15... and so on. Arrears: All current taxes and deductions are withheld before taxes and/or deductions that are in arrears.	Required
Year	The 2-digit year to which the elective deferrals for USERRA makeupcontributions refer. This year is printed on the W-2 form.	Optional