Employee Deduction Section

Deduction

Code identifying the deduction or benefit, as defined in Deduction table. If the pay rate was assigned previously, the Deduction field populates with the first default deduction code for the job class of the primary pay rate. This can be edited.

If default deductions exist, after you finish each one, when you click Next a prompt asks if you want to add another deduction. If you select Yes, the next default deduction will populate. When all default deductions have been added, when you click Next the Deduction field will be blank. Choose from the following options:

• Add a specific deduction for the employee.

• Select Next to proceed to the next add page.

• Click Finish to save your work and leave the record in the Pending Employee Center.

Active Deduction

A checkbox that determines whether a deduction should be processed in pay runs. If the box is selected (default), the deduction status is active, and it will be included in pay run processing.

Additional Gross

Amount to add to the employee’s gross for calculating the deduction. This field only applies if the Deduction table’s Method field is set to M - % Plus Additional Amount. If so, the equation for determining the deduction gross is Deduction Gross = Original Deduction Gross + Additional Gross.

Deduction Account

Vendor-assigned number identifying the employee’s account, for example, the number of the employee’s life insurance policy or health plan. This is not the same as a group policy number, though a group number could be used if no other number is assigned. These account numbers appear in the Payroll Information, Monthly Deduction Summary, and Personnel Information reports.

The entry in this field is for information purposes only, unless you use the Employee Benefits System. In this case, you can enter the Deduction record’s benefit amount. The system then uses the Deduction Account field to update the Coverage field on the Employee Benefits Information page.

Check Indicator

Selection determines whether the deduction should apply to the first paycheck issued to the employee or the first and second checks when multiple checks are issued. Choose from:

• X - 1st Check Only (default)

• S - 1st and Second Check

Start Date

The date when the deduction takes effect. The system processes the deduction when any date within a pay period falls on or after this date. If you leave the field blank, the deduction begins with the next pay run.

Example: For a deduction in a pay period that runs from 10/12/2017 through 10/25/2017, the deduction’s start date must be 10/25/2017 or earlier.

Stop Date

The date to stop the deduction. The deduction will be taken if its stop date falls AFTER  the pay run pay period ending date. If the deduction is to be processed every time the employee is paid, leave the field blank.

Remember that deductions also depend on other settings, such as the Deduction Frequency and Maximum Method fields in the Deduction table record and the Maximum Deduction field in the employee’s Deduction page.

Example: For a deduction to be taken for a pay period that runs 10/12/2017 through 10/25/2017, the deduction’s stop date must be 10/25/2017 or later.

Deduction Amount/Rate

Amount or percentage of the deduction, depending on the deduction method stored in the Deduction table. Decimal/11,6

Maximum Deduction

The maximum cumulative amount that can be deducted in the period identified in the Deduction table record’s Maximum Method field:

• Y - Year to Date

• I - Inception to Date

• F - Fiscal Year to Date

When the maximum is reached, the deduction stops. If the record also includes an employer‑paid benefit, the benefit can continue, depending on the Deduction section’s Stop Date field and the Deduction table’s Maximum Benefit field.

Arrears

Balance owed by the employee when a pay run’s after‑tax earnings cannot cover the deduction amount. In the next pay run, the system adds the arrears amount to the current deduction.

Use of this field depends on the Maintain Arrears checkbox in the related Deduction table record:

• If the box is selected, a balance due is automatically updated in the Arrears field. During the next pay run, the system deducts the arrears amount in one lump sum as long as the earnings cover taxes and higher priority deductions.

• If the box is not selected, balances are not recorded. If you want an amount due deducted in a pay run, you must enter it in the Arrears field before processing the run.

Example 1: A Deduction table record has a deduction amount of $40, and its Maintain Arrears checkbox is selected. After taxes and other deductions are taken in a pay run, an employee has only $30 remaining. The system deducts the $30 and updates the Arrears field with the $10 due. In the next pay run, a total of $50 (40 + 10) will be deducted, provided there are sufficient funds.

Example 2: An employee takes two weeks without pay. If the Maintain Arrears field is not selected and the biweekly deduction is $125, enter this amount in the Arrears field. In the next pay run, a sum of $250 (125 + 125) will be taken. You can fix this by entering 2.00 in the Number of Times field.

Number of Times

If a deduction needs to be taken two or more times in the same pay run, you can temporarily change the field’s 1.00 default to the desired value. An entry in this field only applies to one pay run, after which the system resets the field to the default.

Pay Group

A display-only field reflecting the pay group.

FTE

A display-only field with FTE information.

Hire Date

A display-only field reflecting the employee hire date.

Benefit Effective Date

The date that the benefit takes effect. This date only applies to the Employee Benefits System. If you are using Employee Benefits, information from the Deductions page is copied to the employee's benefit record in Employee Benefits as of the effective date.

Additional Gross

The amount to add to the employee's gross to calculate the benefit. This field only applies if the Deduction table's Benefit Method is set to M - % Plus Additional Amount.

The equation for determining the benefit gross is: Benefit Gross = Original Benefit Gross + Additional Gross

Benefit Amount/Rate

The flat amount or a percentage of the employee's pay. Use this field if the benefit amount/rate varies from employee to employee. If it is the same for most employees, you can use the table record to set the amount/rate and appropriate benefit method. This eliminates the need to set these values for each employee with this benefit. Your entry depends on the Benefit Method identified in the Deduction table.

Refer to Benefit Method and Benefit Amount/Rate for more information.

Maximum Benefit

The maximum cumulative amount the employer can pay in the period identified in the Maximum Method field of the deduction table record is year-to-date, inception-to-date, or fiscal-to-date. When this ceiling is reached, the benefit stops. For benefits that do not have a ceiling, enter zero.

Encumbrances Remaining

The number of times for encumbering the benefit during the remainder of the fiscal year. The system tracks the encumbrances and reduces this field by 1 with each pay run where the benefit is assessed. The benefit will not be encumbered in subsequent pay runs when the field reaches zero.

This field only applies to benefits with amount methods (A - Table Amount or S - Employee Amount). In addition, you must select the Encumber Benefits option in the benefit's deduction table record.

Bank Code

The code identifying the bank for depositing the employee's pay, as defined in the Bank Codes table.

Transaction Code

The special code used in issuing prenotes to test direct deposits.

• 22 - Checking Deposit: Activates direct deposit to checking account.

• 23 - 2nd Checking Prenote: Enables bank to issue final checking prenote.

• 24 - Checking Prenote: Enables bank to issue first checking prenote.

• 32 - Savings Deposit: Activates direct deposit to the savings account.

• 33 - 2nd Savings Prenote: Enables bank to issue final savings prenote.

• 34 - Savings Prenote: Enables bank to issue first savings prenote.

If a bank requires one or two prenotes to validate deposit information, select the prenote option for savings or checking that matches the bank account type. If the bank does not require prenotes, you can immediately set up the direct deposit by assigning code 22 for checking or 32 savings.

For example, for a direct checking deposit where the bank requires two prenotes, select 24. The Create Bank Prenote option changes the code to the next lower level, 23. When you run the prenote tape option again for the bank, the code changes to 22. This activates the direct deposit for your next pay run.

Bank Account

The employee's checking or savings account number for direct deposits. If you set up direct deposits to multiple accounts, create a separate employee deduction record for each deposit.

If direct deposit deduction records do not add up to the total net pay, a manual check will be issued for the difference.

Deduction

The deduction amounts for the current, month-to-date, quarter-to-date, year-to-date, fiscal-to-date, and inception-to-date periods. Amounts default to zero during the add employee process but can be edited if needed.

Benefit

The benefit amounts for the current, month-to-date, quarter-to-date, year-to-date, fiscal-to-date, and inception-to-date periods. Amounts default to zero but can be edited if needed.

Deduction (Ded) Salary)

The gross salaries subject to the deduction or benefit for the current, month-to-date, quarter-to-date, year-to-date, and fiscal-to-date periods. Each period has its Deduction Salary field.