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 |
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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 | ||||||||||||||||||
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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.
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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. | ||||||||||||||||||
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:
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.
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 | ||||||||||||||||||
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. | ||||||||||||||||||
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 | ||||||||
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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. | ||||||||
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.
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. | ||||||||
*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:
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 |
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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 |
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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. |