Go to Advanced Payroll > Payroll Setup
- Click Benefits & Deductions tab
- Click Add New
- Enter Plan number for ordering
- Enter Description this will print on employee pay stubs.
- Select Vendor double click to select the vendor from the Vendor Accounts list.
- Select Group that deduction applies to.
- Check Split to split the deduction across paychecks. Note that if you have 3 paychecks in a month the deduction will only come out of the first 2 paychecks in a month.
- Check Primary to have the employer cost follow the primary wage type with respect to where the expense is recorded. For example, if this is an Administrative Employee, the employer share of their medical costs will be recorded in administrative benefit expenses.
- Select Basis for percent deduction to be taken from.
- Wages = All wages
- Retirement = All pay items with retirement checkbox checked
- Net Wages = Gross wages less federal deductions
- BAS, EL, OB & LA are used to link to the proper BARS code.
- Cap is set to None but can be changed to Yearly for the maximum per year or Maximum for dollar total to be deducted.
- Enter Pay Item when adding a deferred compensation plan that is paid by the employer and needs to be taxed as income.
- Check SS, Med, FWT if the deduction is subject to tax types.
- W2 Box & Code if the plan is reportable then select the applicable W2 box and code type to be reported at the end of the year.
- Select W2 Include if the plan is to include on the W2: Employee, Owner, Both, or Tax Basis for W2 reporting.
- Check W2 Ret. if the plan applies to retirement for W2.
- Uncheck Active if the plan is no longer in use.
- Select appropriate DRS Plan when setting up PERS, LEOFF, PSERS, or DCP, to connect the plan line for automatic updates.
Add settings for deductions
- Click to highlight deduction
- Click Settings tab
- Click Add New
- Enter setting Description
- Enter Employee information, if Available is checked. This means employee is contributing a percentage or amount to the benefit.
Flat is a specific dollar amount to either deduct from the employee or pay by the employer.
Decimal takes a percentage of the employee's wages to calculate the employee deduction or employer contribution.
Min or Max is used if there is a minimum or maximum deduction or contribution that may be involved. Note that these fields apply per paycheck only.
Cap can be used if there is a maximum annual amount that can not be exceeded. For example, if you are withholding child support but there is a maximum annual amount that should not be exceeded.
- Enter Employer information, If City Use or Dist Use is checked. This means employer is contributing a percentage or amount to the benefit.
Flat is a specific dollar amount to either deduct from the employee or pay by the employer.
Decimal takes a percentage of the employee's wages to calculate the employee deduction or employer contribution.
Min or Max is used if there is a minimum or maximum deduction or contribution that may be involved. Note that these fields apply per paycheck only.
Cap can be used if there is a maximum annual amount that can not be exceeded. For example, if you are withholding child support but there is a maximum annual amount that should not be exceeded.
- Click Save
- Click Save
