Deductions Option

Use the Future Deductions page to enter new deduction and benefits information for posting on a specified date.

Menu Path: Human Resources > Reference Tables > Future Changes > Deductions

Action Bar Items

The Future Deductions page's Action Bar displays the following items:

Import	Displays the Import Batch Deduction Table page. This page allows users to import existing deduction tables. For details, refer to Import Future Deductions Table.
Load	Displays the Load Deductions page for copying deductions to the batch Future Deductions table.
Purge	Displays the Purge Future Deductions page for deleting batch files containing future deduction records.
Post	Displays the Post Deductions page for posting deductions on a specified effective date.

Future Deduction Table Reports

The Future Changes > Deductions option enables you to generate two reports:

Future Deduction Table Summary	Provides a basic listing of the future deduction records selected. The report's default file name is bdeductss.rpt
Future Deduction Detail	Provides complete detail on each deduction record selected. The report's default file name is bdeductsd.rpt.

You can specify the type of report by selecting the Summary or Detail radio button in the Report Type page. This page displays when you click Print.

Following are procedures for copying Future Deduction records to a batch file and purging batch file records. For the procedures for adding, changing, deleting, and printing Future Changes records, refer to Future Changes Procedures.

Copying deductions to the batch Future Deductions table

Select Human Resources > Reference Tables > Future Changes > Deductions.
Click Load on the Future Deductions page's Action Bar.
In the Loan Deductions page, complete the following fields:
Control Number Assign a number to identify the batch. Character/8
Effective Date Enter the date the deductions are to take effect.
Deduction Code Enter a code identifying a deduction. To enter multiple deductions, use the pipe symbol ( | ) to separate their codes, for example, 1020|2240|4110.
Click OK.
In the Confirmation dialog, click Yes.

Purging a batch file of Future Deduction records

Select Human Resources > Reference Tables > Future Changes > Deductions.
Click Purge on the Future Deductions page's Action Bar.
In the Purge Future Deductions page's Control Number field, enter the number identifying the batch file being deleted.
OK
In the Confirmation dialog, click Yes to purge the file.

Fields

General Tab

Use this tab to identify the deduction record. Character/8

Field	Description
Control Number	User defined code identifying the batch of records being added or changed.
Effective Date	Date that you want the deduction to become effective. When you use the Post option, the system posts the batch records if this date matches or precedes the Effective Date you enter in the Post Deductions page.
Deduction Code	Code identifying the deduction record.
Title	Brief description of the deduction record. Character/25
Check Title	Abbreviated description for identifying the deduction on employee’s paycheck stubs, for example, 401K or LIFE INS. Character/10
Include in EAC "What If" Paycheck Calculator	Only used with Employee Access Center (EAC). Selecting the checkbox indicates that this deduction will be available in the drop-down list when adding a New Deduction in EAC's “What If” Paycheck Calculator option.

Employee Tab

Use this tab to define the record’s deduction rates.

Field

Description

Frequency

User-defined code referencing the frequency of a deduction in payroll processing, such as biweekly or monthly. Deduction frequencies are often identified by codes such as M (for monthly), B (for biweekly), and W (for weekly). Character/1

Maintain Arrears

Checkbox indicating whether to store a balance when an employee’s after tax wages do not cover the full deduction amount. The system calculates the balance due in the Arrears field of the Employee Deductions page.

Select the field to store the balance and add it to the regular deduction in the next pay run.
Leave the field blank if you do not want to maintain arrears amounts. In this case, the system deducts what it can from the employee’s wages and disregards the remainder.

Method

Setting that determines whether the system should calculate the deduction on an amount or percentage basis and whether this value should be taken from the Deduction table or Employee Deductions page.

Select:

C - Crossover - Uses a percentage that crosses over to the next 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 High 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 amount from the Amount/Rate field in the Employee Deductions page. This method is used when a deduction requires entering a different amount for each employee. With both 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 in 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.
P - Table % - Uses the percentage stored in the Deduction Amount/Rate field.
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 and the Additional Gross amount from the employee Deduction record’s Employee Deduction Information section.

Subjective Gross

Setting specifying the gross calculated pay to use for determining the deduction or benefit amount during payrun and manual check processing. This field applies to P - Table %, R - Employee %, and M - % Plus Additional Amount deduction and benefit methods.

Select one of the following:

Subjective Gross Setting	Deduction calculated on...
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 Tax Gross	Gross amount determined by deduction exemptions on individual pay codes.

The field’s default is SP-Subject Tax Gross. Use this setting, unless you have a circumstance that differs from standard processing.

Withholding Account

Liability account used in the Fund Accounting System for recording deduction and benefit amounts.

Deduction Amount Or Rate

Dollar amount or percentage rate for calculating the deduction, depending on the deduction method. Decimal/12/6

Refer to the Deduction Method field for definitions of the methods that determine the type of entry to use.

Deduction Method	Deduction Amount/Rate
P - Table % or M - % Plus Additional Amount	Enter the percentage of pay taken per pay run.
A - Table Amount	Enter the flat amount taken per pay run.
C - Crossover or I - Incremental Crossover %	Enter the percentage for calculating the deduction until the salary reaches the Maximum Gross.
R - Employee % or S - Employee Amount	Leave the field at its zero default since the rate or amount is set in Employee Deductions windows.

Enter percentages as decimals and amounts in dollars/cents format. For example, 5.25 percent should be entered as .0525, while $50 should be entered as 50.00. The maximum dollar amount allowed is 9999.99.

Maximum Gross

Maximum gross wages subject to deduction under the percentage in the Deduction Amount/Rate field, when the deduction method is C - Crossover or I - Incremental Crossover %. When the employee’s earnings exceed this, the rate crosses over to the percentage in the Crossover Middle Rate field, which is applied against the balance of the gross, until the Crossover Middle Maximum is reached. For other deduction methods, leave the field at its zero default. Decimal/8,2

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 C - Crossover, and 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

Rate used when the wages subject to deduction exceed the maximum gross earnings. Refer to the Deduction Amount/Rate field for the entries required with each deduction method. Decimal/12/6

Crossover Middle Maximum

Maximum gross wages subject to deduction at the Crossover Middle Rate for crossover deduction methods (C - Crossover and I - Incremental Crossover %). Decimal/8,2

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 has no additional crossover, leave the Crossover Middle Maximum and Crossover High Rate fields set at zero.

Crossover High Rate

Rate used when the wages subject to deduction exceed the Crossover Middle Maximum amount. Refer to the Deduction Amount/Rate field for the entries required with each deduction method. Decimal/12,6

Maximum Deduction

Maximum amount annually for this deduction. If there is no limit or you intend to set the maximum in Employee Deductions pages, leave the field at its zero default. You can also enter a maximum here and override this for some employees by setting a different limit in their Deductions pages. Decimal/8,2

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

Example: An employee has a biweekly deduction of $20, the Maximum Deduction is $250, and the Maximum Method is Year-to-Date. If the year-to-date total is $240, the system deducts $10 for the current payroll and ignores the difference. No additional amounts are taken in the current year.

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)

Maximum Method

Determines when to stop applying the deduction to an employee’s pay. Based on the method, the system checks accruals in the Employee Deductions page 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 Disposible Income - Must be used and only used for Child Support Garnishment deductions. Indicates that the Maximum Deduction value should be set to a percentage rather than a dollar amount.

Copy Bank Info to Vendor

Checkbox to copy bank information from the employee, who is a vendor, to the corresponding vendor account. Select to copy the information.

Employer Tab

Use this tab to enter information for deduction records that are either full or partial employer-paid benefits. Note that the titles for the *Budget Unit* and *Project* fields are user defined, as indicated by the asterisks.

Field

Description

Benefit Method

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

Select:

N - None - Indicates that no payment is made by the employer.
P - Percent in Table - Uses the percentage from the Benefit Amount/Rate field in the Deduction table during payroll calculations.
A - Amount in Table - Uses the amount from the Benefit Amount/Rate field of the Deduction table.
R - Percent from Employee - Uses the percentage in the Benefit Amount/Rate field of each employee’s Deductions pages.
S - Amount from Employee - Uses the dollar amount in the Benefit Amount/Rate field of each employee’s Deductions pages.
M - Table Percent + Additional - Multiplies the percentage from the Benefit Amount/Rate field times the benefit gross and the Additional Gross amount from the employee Deduction record’s Employer tab.

Benefit Amount Or Rate

Percentage rate or amount corresponding to the benefit method specified. Decimal/12,6

For definitions of the following methods, refer to the description of the Benefit Method field.

Benefit Method	Benefit Amount/Rate
P - Percent in Table or M - Table Percent + Additional	Enter the table rate as a percentage.
A - Amount in Table	Enter the table rate as a flat dollar and cents amount.
R - Percent from Employee or S - Amount from Employee	Leave the field at its zero default, and set the amount/rate in the employee’s Employee Deductions window.

Enter percentages as decimals and amounts as dollars-cents. For example, 5.25 percen should be entered as .0525 and $12.50 as 12.50. The maximum dollar amount allowed is 9999.99.

Benefit Charging

Setting that determines how the benefit’s costs are distributed.

Select:

A - All Pay Rates - Charges the benefit to Budget Units from the employee’s Pay Rate Information page for primary and secondary rates. Workers’ Comp distributions use this charging method.
P - Primary Pay Rates - Uses 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 entered in the Deduction table to identify the expense ledger to charge.

*Budget Unit*

Low organization that should be charged for this benefit. If you enter O - Use Override Accounts in the Benefit Charging field, identify the ledger that applies by entering the Budget Unit and its Benefit Account.

*Project*

Project code to charge for this benefit, which only applies if you use project accounting in the Fund Accounting System and the Benefit Charging field is set to O - Use Override Accounts.

Benefit Account

Expense account number for the benefit. The Benefit Account is for distributing benefit costs in the Fund Accounting System. The distribution depends on your choice in the Benefit Charging field:

Benefit Charging	Benefit Distribution
A - All Pay Rates	Uses Budget Units from all pay rates in combination with the Benefit Account.
P - Primary Pay Rates	Uses the Budget Unit from the primary rate only in combination with the Benefit Account.
O - Use Override Accounts	Uses the Budget Unit and Benefit Account from the Deduction table.

If you do not want to charge benefits in Fund Accounting, enter 99999999.

Deduction for a Bond

Checkbox indicating whether the deduction/benefit is for a bond. Select the box if this record is for a bond. If it is not, leave the field blank.

Maximum Benefit

Maximum cumulative amount that can be paid by the employer for this benefit in a given year. Decimal/8,2

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 field 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 in pay runs throughout the fiscal year. Leave the checkbox blank if the benefit should not be encumbered.

Times Encumbered

Number of times to encumber the benefit during a fiscal year. This field is used in fiscal year-end processing to reset the Remaining field. Integer/2

Remaining

Number of times remaining for encumbering the benefit during the current fiscal year. At the beginning of the fiscal year, this field’s value should be the same as the value in the Times Encumbered field. Integer/2

Taxation Tab

Use this tab to enter tax exemptions for deductions and indicate whether benefits are subject to taxes. In addition, use to determine how Child Support Garnishments should be calculated.

Field	Description
Federal Tax, FICA Tax, State Tax, and Local Tax	Checkboxes in the Deduction Tax Exemptions section indicating whether the deduction amount should be subtracted from taxable gross wages before calculating taxes in a pay run. Select the fields where the deduction amount is exempt from taxes. Leave the fields blank where the deduction is subject to taxes and should be included in the taxable gross.
Federal Tax, FICA Tax, State Tax, and Local Tax	Checkboxes in the Benefit Taxes section determining whether the benefit amount is subject to taxes. If so, the benefit amount will be added to the employee's taxable gross wages. Select the fields where the benefit amount is subject to taxes. Leave the fields blank if the benefits are exempt and the taxable wages should remain unchanged. These fields are only used if your Human Resources Profile is set for using Child Support Garnishments.
Mandatory	Select this box for all non-child support deductions that are required to be taken for each payroll. This field will determine the disposible income that is used for Child Support Garnishments. Disposible 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 addendum records and the deduction amount will be used for the child support garnishments.

Vendor Tab

To issue vendor payments, the Create Vendor Payments field in your Human Resources Profile must be selected. If you do not process automatic vendor payments, leave the fields in this tab blank.

Field

Description

Vendor

Code identifying the vendor being paid for the deduction/benefit. This code is used in the Fund Accounting System to process batch vendor payments.

Payment Frequency

User-defined code or text description referenced during pay runs to determine the date for paying the vendor. Examples of codes include W (for weekly), B (for biweekly), M (for monthly), Q (for quarterly) and A (for annually). Character/12

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, period, and year.