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Employee Deductions

Details

Deductions are for employee deductions and employer costs associated with insurance plans, pension accruals, and employer matching funds.

Employee Deductions Detail records are for all of the regular deductions from an employee's pay and for employer-paid expenses. Employee Benefits Details create and override Employee Deductions Details.

The Employee Deductions Detail allows for limits to be set, withholding of a fixed amount or percentage, arrears tracking, vendor, and case information as needed.

For the last payroll processed that included the employee, the current, monthly, quarterly, and annual amounts are available at a glance, along with any arrearage amounts.

An Employee Deduction Detail cannot be deleted if year-to-date deduction amounts exist.

Child Support Deductions

If a deduction detail is for a child support payment, select the appropriate Vendor code for that child support payment, and enter the Case Number in the "Case Number" field. If the child support payment is paid via ACH, the Vendor code will need to be defined to include an ACH addenda for child support. In the ACH addenda record for child support payments, a terminated employee's detail has a *Y\, and a non-terminated employee's detail has an *N\ instead.

Processing Logic

A deduction percentage is a percentage of an accumulated dollar amount based on the payroll accumulator selected for the Deductions Code on the deduction codes validation table.

If the deduction detail's start date is less than or equal to the Pay Period end date (given the deduction termination date has not been reached), when a payroll run that pays the employee has a Process Payroll number that equals the Process Payroll number on the deduction, then the deduction is automatically processed according to its defined Process Sequence number.

The Employee Deductions Detail allows for limits to be set, withholding of a fixed amount or percentage, arrears processing (optional based on the deduction code), vendor, and case information as needed.

Effective Dates and Deductions

When a deduction processes depends on its process payroll checkboxes, its payroll accumulator (if any), and its begin and end dates compared to the payroll calendar's pay period. The begin and end date need to be considered to know whether a deduction will process.

Begin Date

• If the begin date of the deduction is within the pay period begin and end dates of the payroll calendar, the deduction processes.
• If the begin date of the deduction is after the pay period end date of the payroll calendar, the deduction will not process.

End Date

• If the end date of the deduction is within the begin and end date of the payroll calendar, the deduction processes.
• If the end date of the deduction is the pay period begin date of the payroll calendar, the deduction processes.
• If the end date of the deduction is before the pay period begin date of the payroll calendar, the deduction will not process.

Deductions may also be entered through pay entry.

Refer to the Dates topic for a summary of effective date information for auto pays, benefits, deductions, net pays, and taxes.