Deductions/Benefits

Deduction Code

Enter a unique code to identify the deduction record.

The limit is four characters.

Title

Enter a description of the deduction, such as an insurance provider's name or the deduction's title.

The limit is 25 characters.

Check Title

Enter a description identifying the deduction on employee paycheck stubs. You can use generic titles, such as HEALTH INS, or specific ones, such as BC POS (for Blue Cross, Point of Service coverage).

The limit is ten characters.

Frequency

User-defined code referencing the frequency of a deduction in payroll processing, such as biweekly or monthly. When you specify a Frequency code in setting up a pay run, the deduction is withheld for all selected employees with the frequency assigned. For more information, refer to Setup Pay Run.

The limit is one character.

For example, deduction frequency codes could include A (for annual), S (for semi-annual), M (for monthly), B (for biweekly), and W (for weekly). Other possibilities include 1 (for the first pay of the month), 2 (for the second pay of the month), and E (for every pay run).

Maintain Arrears

Option that tells the system to store any balance due when an employee's after-tax wages do not cover a deduction amount during payroll processing. The balances for deductions are maintained in the Arrears field on the Employee Deductions page.

Select the box to store the balance and add it to the regular deduction in the next payroll.

Leave the field blank if you do not want to maintain arrears amounts. If the field is not selected and the earnings do not cover the deduction amount in a given payroll, the system deducts what it can and disregards the remainder.

For example, a health care deduction with a withholding amount of $50 per week has its Maintain Arrears field selected. During a week when three days of non-paid leave are taken, an employee's net pay (after taxes and higher priority deductions) is only $40. The system withholds the $40 and stores the $10 balance in the Arrears field of the Employee Deductions page. A deduction of $60 (50 + 10) will be taken in the next pay run.

Method

Setting determining whether the deduction should be calculated on an amount or percentage basis and whether the withholding should be taken from this Deduction record or the Employee Deductions page.

Select:

• C - Crossover: Uses a percentage that crosses over to the following rate when the employee's gross salary reaches the Maximum Gross. The rates are specified in the following fields: Deduction Amount/Rate, Crossover Middle Rate, and Crossover Rate.

• I - Incremental Crossover %: Uses the percentage from the Deduction Amount/Rate field plus a percentage entered in the employee's Deduction record. As with the Crossover method, the Deduction table percentage changes to the Crossover Middle Rate when the Maximum Gross is reached and to the Crossover High Rate when the Crossover Middle Maximum Gross is reached.

• S -Employee Amount: Uses the value from the Amount/Rate field on the Employee Deductions page. This method applies when a deduction requires a different amount for each employee. With the Employee % and Employee Amount methods, the system does not read the table's Deduction Amount/Rate field.

• R - Employee %: Uses the percentage entered in the Amount/Rate field on the Employee Deductions page. This method is used when a deduction requires a different percentage for each employee.

• A - Table Amount: Uses the amount stored in the table's Deduction Amount/Rate field. To override this value, you may enter an amount in the Amount/Rate field on the Employee Deductions page.

• P - Table %: Uses the percentage stored in the Deduction Amount/Rate field. You may enter a percentage in the Amount/Rate field on the Employee Deductions page to override the value from the Deduction table.

• N - None: Indicates there is no deduction taken. You may use this setting for benefits that are fully paid by the employer or when creating deduction records for direct deposits.

• M - % Plus Additional Amount: Multiplies the percentage from the Deduction Amount/Rate field times the deduction gross plus the Additional Gross from the employee Deduction record's Employee Deduction Information section.

Subjective Gross

Setting specifying the gross calculated pay for determining the deduction or benefit amount during pay run and manual check processing. This field applies to the following percentage-based deduction and benefit methods:

• R - Employee %

• P - Table %

• M - % Plus Additional Amount.

Refer to Deductions/Benefits#Subjective Gross Settings and select the appropriate setting.

The field's default is SP - Subject Pay Gross. Under most circumstances, you should use this setting.

Include in EAC "What If" Paycheck Calculator

Option indicating whether the deduction is available in the Employee Access Center (EAC) Paycheck Calculator feature.

Select the box to include the deduction in the calculator's list. Employees can calculate the change in their paycheck if they add this deduction or benefit.

Leave it blank to exclude the deduction from the calculator.

TT - Total Gross

Total gross pay

FI - FICA Tax Gross

FICA taxable gross

MD - Medicare Tax Gross

Medicare taxable gross

FD - Federal Tax Gross

Federal taxable gross

ST - State Tax Gross

State taxable gross

LC - Local Tax Gross

Local taxable gross

DI - Disposable Income

Total gross pay minus taxes, minus all mandatory deductions.

SP - Subject Pay Gross

The gross amount determined by deduction exemptions on individual pay codes.

Withholding Account

Enter the withholding liability account used in the Fund Accounting System for recording deduction amounts.

Deduction Amount Or Rate

Percentage rate or dollar amount for calculating the deduction, depending on the deduction method used. For definitions of the deduction methods, refer to the description of the General tab's Method field, which determines the type of entry to use here in the Deduction Amount/Rate field.

The limit is 12 total numeric characters plus a decimal, with up to 6 digits before the decimal and up to 6 digits following the decimal.

Refer to Deductions/Benefits#Deduction Methods and Corresponding Amounts or Rates and select the appropriate setting.

Enter percentages as decimals (2.5% = 0.025). Enter amounts as dollars and cents (twenty-five dollars = 25.00).

Maximum Gross

This field applies to the following deduction and benefit methods:

• C - Crossover

• I - Incremental Crossover %

For deduction methods other than Crossover or Incremental Crossover %, leave the field at its zero default.

Enter the maximum gross wages, in dollars and cents, subject to the deduction under the rate in the Deduction Amount/Rate field.

When an employee's earnings exceed this, the rate crosses over to the percentage in the Crossover Middle Rate field, which is applied against the gross balance until the Crossover Middle Maximum is reached.

For example, a rate of 1.2% applies against gross wages up to $15,000 and 1.0% against any earnings exceeding this amount. Set the deduction method at Crossover, then enter.012 in the Deduction Amount/Rate field, 15000 in the Maximum Gross field, and .01 in the Crossover Middle Rate field.

Crossover Middle Rate

This field applies to the following deduction and benefit methods:

• C - Crossover

• I - Incremental Crossover %

For deduction methods other than Crossover or Incremental Crossover %, leave the field at its zero default.

Enter the percentage rate used when the wages subject to deduction exceed the maximum gross earnings. Enter the percentage as a decimal, using up to six decimal places.

Decimal/7,6

Crossover Middle Maximum

This field applies to the following deduction and benefit methods:

• C - Crossover

• I - Incremental Crossover %

For deduction methods other than Crossover or Incremental Crossover %, leave the field at its zero default.

Enter the maximum gross wages, in dollars and cents, subject to deduction at the Crossover Middle Rate. When earnings exceed this amount, the deduction percentage crosses over to the rate stored in the Crossover High Rate field.

If a deduction changes to the middle rate and there is no additional crossover, you may leave the Crossover Middle Maximum and Crossover High Rate fields at their zero defaults.

Crossover High Rate

This field applies to the following deduction and benefit methods:

• C - Crossover

• I - Incremental Crossover %

For deduction methods other than Crossover or Incremental Crossover %, leave the field at its zero default.

Enter the percentage rate used when the wages subject to deduction exceed the Crossover Middle Maximum amount. Enter the percentage as a decimal, using up to six decimal places.

Decimal/7,6

Maximum Deduction

Enter the maximum amount, in dollars and cents that can be taken annually for this deduction. If there is no limit or you intend to set the maximum in individual Employee Deductions pages, leave the field at its zero default. You can also enter a maximum here and override this for some employees in their Deductions pages.

The amount deducted from each payroll is added to the Deduction/Year field in the Employee Deductions Accruals tab. Once the maximum is reached, no additional amount is taken until year-end processing procedures are run and the Deduction/Year total resets to zero.

For example, an employee has a biweekly deduction of $20, the Maximum Deduction is set at $250, and the Maximum Method field is set as Year-to-Date. If the accrued year-to-date total is $240, the system deducts $10 for the current payroll and ignores the $10 difference. No additional amounts are taken in the pay runs remaining in the current year.

Maximum Method

Select the method to determine when to stop applying the deduction to an employee's pay. The system checks accruals on the Employee Deductions page based on the method you select to see if the maximum has been reached.

Select:

• Y - Year to Date: Adds the year-to-date deduction/benefit accrual to the current deduction/benefit amount to determine if the maximum deduction/benefit has been reached.

• I - Inception to Date: Adds the inception-to-date accrual to the current amount to determine if the maximum has been reached.

• F - Fiscal to Date: Adds the fiscal-to-date accrual to the current amount to determine if the maximum has been reached.

• P - % of Disposable Income: Required for Child Support Garnishment deductions. Indicates that the Maximum Deduction value should be set to a percentage rather than a dollar amount. For additional information, refer to Child Support Garnishments.

If you do not use a Maximum Deduction or Maximum Benefit for the selected deduction, select any value from the drop-down list and leave the Maximum Deduction and Maximum Benefit fields at their zero defaults.

Cafeteria Plan

Setting indicating whether employees with this deduction qualify for the Federal Exempt Cafeteria Plan.

Select:

• Y - Deduction is part of the cafeteria plan

• N - Deduction is not part of the cafeteria plan (default)

Copy Bank Info to Vendor

Option to copy bank information from the employee, who is a vendor, to the corresponding vendor account. Select to copy the information. Leave blank, and the data is not copied to the vendor record.

Deduction for a Bond

Option indicating whether the deduction is for a U.S. Savings Bond. If you select the box, you can enter bond information when you add the deduction to an employee record. For details on the Bond Information page, refer to Deductions Page.

• C - Crossover

• I - Incremental Crossover Percentage

Enter the percentage for calculating the deduction until the salary reaches the Maximum Gross.

• S - Employee Amount

• R - Employee %

Leave this field at its zero default since the rate or amount is set in Employee Deductions.

A - Table Amount

Enter the flat amount taken per pay run.

• P - Table %

• M - % Plus Additional Amount

Enter the percentage of pay taken per pay run.

Benefit Method

Setting determining whether an employer-paid benefit is calculated on an amount or percentage basis and whether the system references the Deduction Table or Employee Deduction record for the contribution rate.

Select:

• P - Table %: Uses the percentage in the Deduction table's Benefit Amount/Rate field during payroll calculations. Use this method when the same benefit percentage applies to all employees who receive this benefit. You can override the table percentage by entering a rate in the Benefit Amount/Rate field on the Employee Deductions page.

• S - Record Amount: Uses the dollar amount in each employee's Deductions page's Benefit Amount/Rate field. Use this method when different amounts apply to different employees.

• A - Table Amount: Uses the amount in the Deduction table's Benefit Amount/Rate field. Use this method when the same flat amount applies to all employees who receive this benefit. You can override the table amount by entering an amount on the Employee Deductions page

• R - Record %: Uses the percentage in the Employee's Deductions page's Benefit Amount/Rate field. Use this method when different rates apply to different employees.

• N - None: Indicates that the employer makes no payment.

• M - % Plus Additional Amount: Multiplies the percentage from the Benefit Amount/Rate field times the benefit gross plus the Additional Gross from the employee Deduction record's Employer tab.

Benefit Amount Or Rate

Amount or rate corresponding to the benefit method.

Decimal/11,6

Refer to Deductions/Benefits#Benefit Method Descriptions and enter the appropriate amount or rate.

Enter percentages as decimals (2.5% = 0.025). Enter amounts as dollars and cents (twenty-five dollars = 25.00).

Benefit Charging

Setting determining how charges for this benefit are distributed.

Select:

• A - All Pay Rates: Charges the benefit to the Budget Units from the employee's Pay Rate Information page for both primary and secondary rates. Workers' Comp distributions use a benefit charging method of All Pay Rates.

• P - Primary Pay Rates: Uses the Budget Units from the employee's Pay Rate Information page for the primary pay rate only.

• O - Use Override Accounts: Uses the Budget Unit and Project from the Deduction table to identify the expense ledger to charge.

*Budget Unit*

Used when Benefit Charging is set to O - Use Override Accounts

Enter the Budget Unit that should be charged for this benefit. If you select Use Override Accounts in the Benefit Charging field, you must identify the ledger to use by entering the *Budget Unit* and its Benefit Account.

*Project*

Used when Benefit Charging is set to O - Use Override Accounts

Enter the Project code to charge for this benefit. Enter a code from the Project List only if you use project accounting.

Benefit Account

Enter the expense account number for the benefit. The Benefit Account is used to distribute the benefit expense in the Fund Accounting System.

Refer to Deductions/Benefits#Benefit Charging Options for more information.

If you selected either A - All Pay Rates or P - Primary Pay Rates as the Benefit Charging methods and do not want to charge the benefit in Fund Accounting, enter 99999999 in the field. With this setting, the system does not create a Detail Distribution record.

Maximum Benefit

Enter the maximum cumulative amount the employer can pay for this benefit in a year. If there is no limit or you intend to set the maximum on an individual basis in employee Deductions pages, leave the field at its zero default. Refer to the Maximum Deduction and Maximum Method fields for additional information on how the maximum is applied.

Encumber Benefits

Checkbox determining whether to encumber the benefit's amount in the Fund Accounting System. Select this field to encumber the benefit and reduce the encumbrance amount throughout the fiscal year based on payroll processing. Leave the checkbox blank if the benefit should not be encumbered.

Times Encumbered

Enter the number of times the benefit is assessed during a fiscal year. This field is used during fiscal year-end processing to reset the Remaining field.

The limit is two numeric characters

Remaining

Used when the Benefit Method is set to:

• S - Record Amount

• A - Table Amount

The remaining number of times the benefit will be assessed during the current fiscal year. At the beginning of the fiscal year, the field value should be the same as the number of Times Encumbered.

The field value defaults into the Deductions page's Encumbrances Remaining field when you add a specific deduction for an employee. When the deduction is included in a pay run, the system changes the Remaining field in the Deduction table to equal the Encumbrances Remaining in employee records.

Normally, you allow the system to track this value. If you manually change the value in this field, a confirmation page displays asking whether to change Encumbrances Remaining for all employees receiving the benefit:

Select Yes to change the Encumbrances Remaining for all active employee Deduction records that include the benefit. Otherwise, select No to limit the change to the table only.

• P - Table %

• M - % Plus Additional Amount

Enter the table rate as a percentage. Enter percentages as decimals.

• S - Record Amount

• R - Record %

Leave the field at its zero default, and set the rate in the employee Deductions pages.

A - Table Amount

Enter the table amount in dollars and cents.

A - All Pay Rates

Combines *Budget Units* with the Benefit Account for all pay rates.

P - Primary Pay Rates

Only the *Budget Unit* for the primary rate is combined with the Benefit Account.

O - Use Override Accounts

The *Budget Unit* and Benefit Account from the Deduction table are used for the distribution.

Federal Tax, FICA Tax, State Tax, and Local Tax

Options indicating whether the deduction amount should be subtracted from or added to the taxable gross wages used to calculate the employee's federal, FICA, state, and local taxes.

Select the appropriate tax field if the deduction is not subject to the tax, and therefore the deduction amount is subtracted from the employee's gross taxable wages.

Leave the field blank if the deduction is subject to the tax, and the wages should remain unchanged.

Federal Tax, FICA Tax, State Tax, and Local Tax

Settings determining if the benefit is subject to taxes.

Select the appropriate tax field if the benefit is subject to the tax; therefore, the benefit amount is added to the employee's gross taxable wages.

Leave the field blank if the benefit is exempt, and the wages should remain unchanged.

Refer to the appropriate tax guidelines to identify taxable employer contributions.

Mandatory

Select this box for all Non-Child Support Deductions that are required to be taken for each payroll. This field will determine the disposable income used for Child Support Garnishments. Disposable income is calculated as Total Gross Pay minus Taxes minus All Mandatory Deductions.

Child Support

Select this box if the deduction is a Child Support Garnishment deduction. With this setting, addendum records can be added to the employee's deduction record, and the deduction amount will be used for the Child Support Garnishments.

Calculate Prior to Additional Withholding

Select this box if the deduction or benefit is to be calculated before adding additional withholding amounts designated on the Employee Tax Information page.

Vendor

Enter the vendor code identifying the vendor being paid for the deduction/benefit. The Fund Accounting System uses this code to process batch vendor payments.

Payment Frequency

Enter a user-defined code or text description referenced during pay runs to determine the date for paying the vendor, for example, B for biweekly and M for monthly.

The limit is 12 characters.

Payment frequencies are required for creating batch vendor payments. During payroll setup, the system displays each payment frequency and allows you to enter the due date, pay period, and year.

Summary

Lists one line of basic information for each Deduction record. The default file name for the Summary report is deductss.rpt.

Detail

Includes complete information for each record. The default file name for the Detail report is deductsd.rpt.