The Deductions option, which is in Payroll but can also be accessed from Negotiations (if applicable), is used to define the deductions and benefits that are withheld from the employees or paid by the employer during a Payroll check cycle.  Deductions are first defined in the Deduction File and then tied to each employee in the Employee File.  A deduction can be paid by the employee, employer, or split between the two.  The rates for deductions can be set up individually in each employee’s record or in a rate table within the Deduction File if the rates are standard and apply to several employees.  If the deduction rates are set up in a rate table, when the rates change, only the rate table needs to be updated with the correct amounts.

During a Payroll check cycle, the system subtracts the amounts for each deduction from the employees’ earnings and expenses the amounts paid by the employer.  The total amount withheld and expensed for each deduction is placed in the specified payables account until the check is written.  The checks for the deductions (issued to payees) can be printed automatically during the Payroll check cycle, and multiple deductions can be set up to print to the same payee, if necessary.  Detailed reports can be generated showing each deduction and the amounts withheld and expensed for each employee for a particular deduction.

Steps to Add a Deduction

Steps to Change a Deduction

Steps to Delete a Deduction


Steps to Convert IDs to Alpha

Steps to Convert to Rate Table

Steps to Define W2 Box 14 Default Order

Steps to Increment Exclude After Date

Steps to Move a Rate Table