Brief Overview
Deductions and benefits are used to decrease or increase the gross pay on a paycheck. Set up how deductions and benefits will function in the Payroll module using the Setup window (PR> Utilities> Setup). Once the setup is complete, use the Deductions/Benefits Maintenance window (PR> Maintenance> Deductions/Benefits) to create the deductions and benefits. After you have set up the deductions and benefits, attach them to employee records using the Employee Maintenance window (PR> Maintenance> Employee> Deductions and Benefits tab). When you calculate the payroll using the Computer Checks process (PR> Computer Checks> Calculate Payroll), check the Calculate Deductions toggle to include the deductions and benefits on the payroll checks.
Deductions also used to set up direct deposit on an employee record (a bank record is attached to a deduction record and the employee bank account number is attached to the deduction line item on the employee record).
Setup window
The Setup window (PR> Utilities> Setup) has three options that affect how deductions and benefits will function in the Payroll module.
Check the Show inactive deductions and benefits toggle on the Checks tab if deductions/benefits that are set up as inactive on the employee record (PR> Maintenance> Employee> Deductions or Benefits tab> Status drop-down menu> Suspend) should display on the check stubs. If you do not check this toggle, deductions and benefits that are set up as inactive on the employee record, even if there is a YTD balance on those deductions and benefits, will not display on the check stub. Deductions and benefits that are set up as inactive on the employee record will not affect the paycheck generated in the Computer Checks process.
The Default Start Date drop-down menu on the Deductions tab is used to set the default start date of new deductions/benefits when they are added to an employee record using the Employee Maintenance window (PR> Maintenance> Employee Maintenance> Create icon> Deductions and Benefits tabs). The start date of a deduction/benefit displays in the Start Date field (PR> Maintenance> Employee Maintenance> Deductions and Benefits tab). This only sets the default value; you will be able to modify the start date of the deduction/benefit if the default value does not apply. Select Current Date if you would like the start date to default to the current date when a new deduction/benefit it added to an employee record. Select Hire Date if you would like the start date of the deductions to default to the hire date (PR> Maintenance> Employee> General Information tab> Job Detail section> Hire Date field) of the employee.
Check the Deduction and benefits follow task toggle to allow the employee’s deductions and benefits to follow the general ledger number instead of the employee distribution when using Project Management module task codes.
Deductions/Benefit Codes
Deductions and benefits are created and maintained using the Deduction/Benefit Maintenance window (PR> Maintenance> Deductions/Benefits). The deduction/benefit code determines how the deduction/benefit will be calculated and which gross pay amounts will be affected by the deduction/benefit. Deductions/benefits must have the Print on Stub toggle checked if you would like the deduction/benefit to display on the paycheck.
Attach to employee records
Once the deductions and benefits have been created, attach them to employee records using the Employee Maintenance window (PR> Maintenance> Employee> Deductions or Benefits tab). When attaching the deduction or benefit to the employee record, make sure Active is selected in the Status drop-down menu. Deductions or benefits that are attached to the employee record with a suspended status will not affect the employee’s paycheck.
When attaching the deduction or benefit to the employee record, you can either select a step amount (the rate structure set up on the deduction/benefit record), or you can manually enter an amount that will override the rate structure set up on the deduction/benefit record.
Direct Deposits
Deductions are used to set up direct deposits on an employee record.