AptaFund includes several predefined system deductions— including, but not necessarily limited to, state and federal withholding, Medicare, FICA, earned income credit, GTL, and direct deposit.
These deductions must be edited before they can be used. You must specify the vendor to which payroll liabilities will be paid and set the liability and expenditure elements to which the deductions will be allocated.
You may also need to create additional system deductions — for example, if you have an employee who works in one state, but lives in another state.
These deductions cannot be deleted.
Use this function to add a state withholding deduction for a new state and to add system deductions that have been created by legislation since you implemented AptaFund — for example, the Medicare High-Income Surcharge deduction.
While in the Manage Deductions window, click the Create System Deductions button at the bottom of the window. The Create System Deductions window opens with a list of available states.
Click on the state(s) for which you want to add a system deduction.
Click OK. The system deduction(s) are created with a Disabled status and displayed in the Manage Deductions window.
You must now edit and enable the new system deductions before they can be used.
System deductions must be edited before they can be used. Most fields required for the system deduction will have been completed, but you must specify the vendor to which payroll liabilities will be paid and set the liability and expenditure elements to which the deductions will be allocated.
FICA deduction: FICA eligibility is based on the Jobs/Addenda field on the FICA deduction. All jobs included in this field will be subject to FICA, making it easy to just omit the jobs/addenda that shouldn’t be subject to FICA. There’s also a setting on the Jobs/Addenda popup that enables you to automatically include new master positions.
To enter system deduction details:
While in the Manage Deductions window, check the box for the system deduction you want to edit.
Click the Edit button at the bottom of the window, and the Deduction Details window opens.
Complete the fields as described below.
Vendor:
Select the vendor to which payroll liabilities will be paid.
Note:
When payroll registers with direct deposits on them are processed,
a vendor liability will be created so that a check or debit for
the direct deposit amount will be created for the bank. For the
direct deposit system deduction, select the direct deposit bank
for the check or debit that was entered in Vendor
Management.
Employee Information > Liability Account Mask: Enter the appropriate liability account mask.
Employer Information > Expense Account Mask: For deductions with a matching portion paid by the employer — e.g. FICA & Medicare — enter the appropriate expense account mask.
Employer Information > Liability Account Mask: For deductions with a matching portion paid by the employer — e.g. FICA & Medicare — enter the appropriate liability account mask.
Click the Save button.
Enable the deduction. Click here for instructions.
Return to Manage Deductions Overview
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