Steps
to Add a Deductions Payable EntryFrom the Payroll screen, select the Maintenance menu and then Deductions.
Note: If desired, to access the Deduction File from Negotiations (if applicable), select the Payroll menu from the Negotiations screen and then Deductions.
At the Deductions screen, click the New Record button.
Note: For any field equipped with the repeat function, click the Repeat button or press the Ctrl+R keys to repeat the previous entry for the specified field. The repeat function is only available after your initial entry.
Click the General tab to complete the general information for the deduction.
Enter a unique ID for the deduction in the Deduction ID field. The ID can be alphanumeric and up to 10 characters long (no spaces).
Note: To have the system automatically assign the ID using the first 10 characters (letters and numbers only) of the description (as entered in the Deduction Description field), leave the ID field blank; once the record is saved, the ID will be assigned.
Tip: To help tie the deduction and payee together, use the same IDs for both, if applicable.
Select the Active field to stipulate the deduction is currently active and used by the district. A checkmark will appear in the box if the field is selected. When adding a new deduction, the Active field is selected by default.
Note: If the Active field is unselected (a checkmark does not appear in the box) for an existing deduction, the deduction will no longer be withheld or expensed for employees who previously had the deduction set up.
Enter a description for the deduction in the Deduction Description field. The description can be up to 40 characters long.
Enter the appropriate type (Add, Deduction, Individual Bank Account Deduction, Payment In Kind, or Percent of Net) for the deduction in the Deduction Type field, or click the down-arrow button to select the correct one. If the deduction is paid by the employer and increases the gross wages for the employees, enter Add. If the deduction is withheld from the gross wages of the employees, or paid by the employer as a benefit (does not affect the gross wages for the employees), enter Deduction. If the deduction is withheld from the gross wages of the employees or paid by the employer, and then electronically deposited into an individual bank account for the applicable employees (for example, a health savings account deduction), enter Individual Bank Account Deduction. If the deduction will increase the taxable gross but not affect the gross wages, enter Payment In Kind. If the deduction is a percentage of net wages (amount is withheld from the employee or paid by the employer), enter Percent of Net; the amount included in the net wages is figured after the unselected cross references (deductions and taxes) are reduced, and so to setup a "true" percent of net deduction, leave all cross references unselected except for the pay codes.
Note: If adding a deduction with Individual Bank Account Deduction as the Deduction Type, the account number for the individual bank accounts (for example, health savings accounts) and corresponding bank information for the applicable employees will be entered on the Deductions screen in the Employee File; direct deposit must be setup in Payroll if deductions with Individual Bank Account Deduction as the Deduction Type will be utilized as the deposit amounts to the individual bank accounts will be transferred electronically. If desired, deductions for health savings accounts can be set up differently without using direct deposit (not using Individual Bank Account Deduction as the Deduction Type; checks are written to the various institutions instead). Refer to the Health Savings Account Deductions Setup Checklist for more information on the different ways to set up health savings account deductions in the School Accounting System.
Enter the description for the deduction that will print on the employee check stubs in the Deduction Check Description field. The description can be up to 15 characters long.
Note: If two or more deductions have the same check description, those deductions will be combined on the check stubs, the Payroll Register reports, and the Distribution Report by Expense Account (with Detailed or Summary Earnings).
Tip: Enter an asterisk (*) as the first character of the check description to have the system combine this deduction with others (that also have an asterisk as the first character of the check description) on the check stub using OTHER YTD DED as the description. The total for the deductions (and taxes, if applicable) using the OTHER YTD DED description will be split out (print with a separate line and subtotal) for those that are taxes, retirement deductions, and other deductions.
If applicable, enter the ID assigned to the school district for the deduction in the School ID Number field. The ID can be alphanumeric and up to 20 characters long.
In the Payables Mask field, enter the mask for the balance sheet payable account that will retain the money withheld or expensed for the deduction until the check is written. When entering the mask, be sure to follow the balance sheet account structure defined for your organization, key spaces between the account dimensions, and use Xs as placeholders.
Note: The Payables Mask field is disabled and not applicable for deductions with a Deduction Type of Add or Payment In Kind.
If all or part of the deduction is paid by the employer, enter the mask for the expenditure account to be debited for the employer's share of the deduction in the Expense Mask field; when the employer's share of the deduction is expensed during a check cycle, the placeholders for the mask will be replaced with the valid account dimensions from the salary expense accounts defined for the employees. Leave this field blank if the deduction is only paid by the employees or the deduction is a Payment In Kind type. When entering the mask, be sure to follow the expenditure account structure defined for your organization, key spaces between the account dimensions, and use Xs as placeholders.
Note: The Expense Mask field is disabled and not applicable for deductions with a Deduction Type of Percent of Net.
Enter the sequence number of the deduction in the Deduction Sequence field. The sequence number tells the system in what order to process employee deductions and tax withholdings. The system must calculate the wages and deductions in a certain order to determine the correct amount of taxable wages and withholdings. Each deduction type carries a sequence value in the 100 to 900 range. The system processes the lower values first. The deductions with an Add type are the first deductions processed since they increase the gross wages and thus have a sequence value in the 100s. The deductions with a Payment In Kind type are the next deductions processed and carry a sequence value in the 200s. Miscellaneous deductions, annuities, flex deductions, and percent of net deductions carry a sequence value in the 500s. The retirement deductions are the last deductions processed (with the exception of the percent of net deductions) and have a sequence value in the 900s. The sequence number as based on the Deduction Type will appear by default, but can be changed, if needed.
Note: Two or more deductions can have the same sequence number; however, to control the order of each deduction, if desired, increment the sequence number (for example, 501, 502, 503, etc.).
If desired, enter the rate type (Fixed, Fixed Table, Multiplier Percent, Percent, or Percent Table) to use as the default for this deduction in the Rate Type field, or click the down-arrow button to select the correct one. If the deduction rate is a fixed dollar amount and entered individually for each employee, enter Fixed. If the deduction rate is a fixed dollar amount and set up in a rate table within the Deduction File, enter Fixed Table. If the deduction rate is a percentage per $1,000 of the employees' annual wages (or inflated wages) less a particular limit (if applicable) using rates entered in a rate table based on the age of the employee, enter Multiplier Percent. If the deduction rate is a percentage of gross wages and entered individually for each employee, enter Percent. If the deduction rate is a percentage of gross wages and set up in a rate table within the Deduction File, enter Percent Table.
Note: If Percent of Net is selected as the Deduction Type, the Rate Type field will be set to Percent of Net and cannot be changed. To view the detailed calculations for how the system figures the amount for a deduction defined with a Rate Type of Multiplier Percent, click here.
Select the Declining field for the deduction to have the Declining field (on the Deductions screen in the Employee File) selected by default when adding the deduction to an employee. A declining deduction is one that is set up with a declining balance and stops when the balance is zero. A checkmark will appear in the box if the field is selected.
If the deduction is a retirement deduction for your state’s retirement system, select the State Retirement System Deduction field. A checkmark will appear in the box if the field is selected.
For Missouri school districts and applicable Illinois school districts only, select the Retirement on Board’s Share field if the employer’s share of the deduction increases the retirement taxable gross wages. A checkmark will appear in the box if the field is selected.
If applicable, enter the date to start using the deduction in the Start Date field. Use the mm/dd/yyyy format or click the down-arrow button to select the desired date.
If applicable, enter the date to stop using the deduction in the End Date field. Use the mm/dd/yyyy format or click the down-arrow button to select the desired date.
Select the Exclude from Expense Payroll field to not have a deduction expensed as part of an Expense Payroll or Reversing GAAP (applicable for Iowa school districts who reverse GAAP expense only) payroll batch processed at the end of the fiscal year. A checkmark will appear in the box if the field is selected.
Note: If this field is selected, the system will still include (calculate) the deduction during the Expense Payroll or Reversing GAAP payroll calculation in order to correctly figure the gross taxable wages for Social Security and Medicare, but the deduction will not be expensed to General Ledger. The deduction will be reflected on the General Ledger Distribution Report - Detail as debiting and crediting the Benefits Payable account (essentially canceling each other out).
If the Exclude from Expense Payroll field is selected, the Exclude After Date field is enabled. If applicable, to exclude the deduction from only certain expensed pay periods (date sequences), enter the date on which to start excluding (not expensing) the deduction in the Exclude After Date field. Use the mm/dd/yyyy format or click the down-arrow button to select the desired date. Leave this field blank to exclude the deduction for all expensed pay periods (date sequences). For example, to exclude (not expense) the deduction for both the July and August pay periods, leave this field blank; however, to include (expense) the deduction for the July pay period but then exclude (not expense) the deduction for the August pay period, enter August 1 for the appropriate year (08/01/yyyy) in this field.
If applicable, complete the Payee Check Information section for the deduction.
Note: The Payee Check Information section is disabled and not applicable for deductions with a Deduction Type of Add, Individual Bank Account Deduction, or Payment In Kind.
To have the system automatically print a check during the Payroll check cycle for the amounts withheld and expensed for the deduction, enter the ID of the payee for which to write the check in the Payee ID field. If the ID is not known, click the down-arrow button to select the correct one, or press the Ctrl+F keys to access the search feature. If the Payee ID field is left blank, the system accumulates the amount withheld and expensed in the specified payable account(s) in General Ledger but will not print a check for the deduction during a Payroll check cycle.
Note: Only the active payees appear by default when searching, but the filters can be changed if needed.
If desired, to not print a check to the specified payee (entered in the Payee ID field) but have the amount that is withheld and expensed for the deduction accumulate in the specified balance sheet payable account(s) in General Ledger and tracked in the Deductions Payable option in Payroll (so that a check can be written from Payroll at a later time), select the Hold Check field. A checkmark will appear in the box if the field is selected.
Note: If needed, there is also a Hold Check field on the Deductions Payable screen that can be utilized (selected) instead to not print the check for the deduction for just a particular checking account and fund.
To print the check to the specified payee (entered in the Payee ID field) only when completing a Payroll check cycle for a particular pay group, enter the ID of the desired pay group in the Pay Group ID field. If the ID is not known, click the down-arrow button to select the correct one, or press the Ctrl+F keys to access the search feature.
Complete the W2 Information section for the deduction.
To mark the Retirement Plan checkbox in Box 13 on the W2 for those employees with this deduction, select the Retirement Plan (Box 13) field. A checkmark will appear in the box if the field is selected.
If the deduction should have the year-end totals post to the W2s, enter the information for the applicable W2 box(es) in the W2 Information List. To add a W2 box, complete the following in the blank line (indicated with an asterisk) at the bottom of the W2 Information List:
Enter the box number (and letter, if applicable) for where to post the year-end totals on the W2 for the deduction in the Federal Form Box ID field, or click the down-arrow button to select the correct one. For example, 403(b) annuities should post to Box 12E on the W2.
Enter the appropriate type for which share of the deduction (Employee, Employer, or Both) to print on the W2 in the Share to Print field, or click the down-arrow button to select the correct one. To only have the share paid by the employee included in the deduction total on the W2, enter Employee. To only have the share paid by the employer included in the deduction total on the W2, enter Employer. To have the shares paid by both the employee and employer included in the deduction total on the W2, enter Both.
If 14 is specified in the Federal Form Box ID field, the Box 14 Description field is enabled. Enter a short description that will print on the W2 for the total for this deduction in Box 14 in the Box 14 Description field. The description entered into this field can be up to 15 characters long, but keep in mind, all 15 characters may not print on the actual W2s as the field is defined with a set width on the W2 forms, and the number of characters allowed on the forms varies based on the selected W2 format, whether or not capital letters are used, and the specific letters included (for example, some uppercase and lowercase letters are wider than others). The description entered in the Deduction Check Description field will appear as the default, but can be changed.
Note: Deductions with the same Box 14 Description will be combined together on the W2.
If applicable, repeat these steps until all the W2 boxes have been added for the deduction.
Note: To remove an entry from the W2 Information List, click the Delete button to the left of the desired entry; when prompted to delete the line, click Yes.
Complete the Report Options section for the deduction.
Select the Print Gross Wages field to print the gross calculated for the deduction on the Deduction Register and Payroll Register Totals reports. A checkmark will appear in the box if the field is selected.
Select the Print Employee Social Security Number field to print the social security numbers for the employees on the Deduction Register for the deduction. A checkmark will appear in the box if the field is selected.
Select the Print Employee ID field to print the IDs for the employees on the Deduction Register for the deduction. A checkmark will appear in the box if the field is selected.
Select the Print Member Number field to print the member numbers for the employees (as entered on the Deductions screen in the Employee File) on the Deduction Register for the deduction. A checkmark will appear in the box if the field is selected.
Only if the deduction is paid entirely by the employer, select the Hide on Check field to not print the information for the deduction on the employee check or direct deposit stubs (or appear in Web Link, if applicable). A checkmark will appear in the box if the field is selected.
Note: If this field is selected and a portion of the deduction is paid by the employee, the amounts on the employee check or direct deposit stubs will not balance to the amount of the net check.
If the Hide on Check field is not selected, the Print Rate Table Description on Check field is enabled. If applicable, select the Print Rate Table Description on Check field to print the rate table description used for calculating the deduction on the employee check or direct deposit stubs. A checkmark will appear in the box if the field is selected.
Note: If this field is selected, the W4 Rate Table Description field must be included as a field in the Stub Deductions section for the desired check formats in the Check Setup - Employees option.
In the Cross References List, select the taxes that will include the deduction in its taxable gross and the pay codes that allow this deduction by clicking the box to the left of the desired tax or pay code ID. A checkmark will appear in the box if the tax or pay code is selected. If the employee’s share of the deduction is to be included in the taxable gross for a particular tax, the tax must be selected. If the deduction is allowed to be expensed against a particular pay code, the pay code must be selected. To select all of the IDs for the taxes or pay codes, click the box located by itself (without a label) at the top of the taxes and the top of the pay codes.
Note: The retirement deductions (those with the State Retirement System Deduction field selected) also appear in the Cross References List when viewing other deductions; if the employee's share of the deduction is to be included in the retirement gross, select the retirement deduction. When viewing the retirement deduction, all the other deductions appear in the Cross References List; if the amounts withheld for a deduction should be included as part of the retirement gross, the deduction must be selected. When viewing a Percent of Net deduction, all the other deductions also appear in the Cross References List; the amount included in the net wages is figured after the unselected cross references (deductions and taxes) are reduced.
Tip: For Percent of Net deductions, to setup a "true" percent of net, leave all cross references unselected except for the pay codes.
Click the Save button.
If applicable, click the Rate Table tab to enter limits and/or standard rates for the deduction.
To start or stop the deduction at a certain point, complete the Limits List as follows:
If applicable, enter the amount to use as the lower limit for when the deduction should start in the Deduction Lower Limit field for the appropriate Deduction Limit Range field (Payroll, Month, Quarter, Calendar Year, or Fiscal Year). The amount can be up to 14 digits long (including the decimal point) and will be rounded to 2 decimal places by the system.
If applicable, enter the amount to use as the upper limit for when the deduction should stop in the Deduction Upper Limit field for the appropriate Deduction Limit Range field (Payroll, Month, Quarter, Calendar Year, or Fiscal Year). The amount can be up to 14 digits long (including the decimal point) and will be rounded to 2 decimal places by the system.
If a lower or upper limit is used, enter the type for the limit (Employee, Employer, or Gross) in the Deduction Limit Type field, or click the down-arrow button to select the correct one. To calculate the limit on the amount paid by the employee, enter Employee. To calculate the limit on the amount paid by the employer, enter Employer. To calculate the limit on the gross wages, enter Gross.
Note: For lower limits, the type must be Gross. If adding a deduction with a Rate Type of Multiplier Percent and a particular limit or amount should be subtracted from the employees' annual wages (or inflated wages) before calculating the applicable rates, enter the amount to subtract as a lower limit on the Calendar Year for Gross.
Tip: The limits are calculated based on check dates.
To enter standard rates for the deduction, complete the Deduction Rates List as follows:
In the blank line (indicated with an asterisk) at the bottom of the Deduction Rates List, enter the description for the rate in the Rate Description field; for example, Single Rate, Married Rate, etc. The description can be alphanumeric and up to 40 characters long. If desired, the description entered here can be set up to print on the employee check stubs and the Deduction Register.
Note: The rates will be listed in the Deduction Rates List in alphabetical order.
Enter the amount to be withheld from the employee’s earnings in the Employee Rate field. The amount can be up to 14 digits long (including the decimal point) and will be rounded to 4 decimal places by the system.
Enter the amount to be expensed and paid by the employer in the Employer Rate field. The amount can be up to 14 digits long (including the decimal point) and will be rounded to 4 decimal places by the system.
The system will automatically calculate the total of the two amounts and display it in the Rate Total field. The amount displayed in the Rate Total field cannot be edited.
If the rates for the deduction will change on a certain date, the new rates can be entered at this time by entering the date the new rates are effective in the Rate Change Date field (using the mm/dd/yyyy format or clicking the down-arrow button to select the desired date), and then entering the new amounts in the New Employee Rate field and the New Employer Rate field. The system will automatically calculate the total of the two amounts and display it in the New Rate Total field. The amount displayed in the New Rate Total field cannot be edited. Then once a payroll calculation batch is processed using a Check Date on or after the date entered in the Rate Change Date field, the new rates for the deduction will be used.
Note: If adding a deduction with a Rate Type of Multiplier Percent, be sure to enter a rate called "Multiplier Rate" as the Rate Description with the applicable multiplier for the wages entered in the Employee Rate or Employer Rate field. For example, if the deduction should be calculated on one and one-half times the employees' wages (150% of the wages), enter 1.5 as the multiplier rate; if calculated on two times the wages (200% of the wages), enter 2; or if calculated on the actual wages (100% of the wages), enter 1. Then enter the rates for the various ages using the following specific wording: "Under" at the beginning of the Rate Description in the first age bracket, "Older" at the end of the Rate Description in the last age bracket, and the numbers of the ages at the beginning and end of the Rate Descriptions for the remaining age brackets; for example, use rate descriptions of "Under 25", "25 through 39", "40 through 69", and "70 and Older".
Click the Save button.
If applicable, click the Deductions Payable tab to set up an override payment if the deduction will require a check to be written for a different amount than what is withheld and expensed for the deduction.