Add a deduction or benefit — Employee Information fields

Complete the Employee Information fields as described. Use these fields to specify the employee responsibility for this deduction.

4. • Pay Period Amount or Percent:

   • • If this deduction/benefit is non-variable, enter the amount or percentage. You must enter a value for this field in either the Employee or Employer Information section.

     • If this deduction/benefit is variable, this field is optional. If you enter a value, it will be displayed as a default that can be modified when you assign this deduction to an employee.

   • Based On: This field is available only for deductions/benefits using the Percentage calculation method and determines the base amount for the calculation. The Deduct Order determines the options available in the pull-down list.

   • • When the deduct order is Pre-Social Security, the only option is gross wages.

     • When the deduct order is Pre-Tax, select from gross wages, Medicare wages, and FICA wages.

     • When the deduct order is Post-Tax, select from gross wages, federal taxable income, state taxable income, after-tax income, Medicare wages, FICA wages, or disposable income.

   • Monthly Cap: Optional. Enter a dollar amount. Entering a monthly cap will prevent the deduction from being assessed once the cap amount is deducted from the employee's salary for the month. The deduction will resume being assessed the next month.

   • Yearly Cap: Optional. Enter a dollar amount. Entering an annual cap will prevent the deduction from being assessed once the cap amount is deducted from the employee's salary for the calendar or fiscal year.

   • Multi-Yearly Cap: Enter a dollar amount. This type of cap  is used for a deduction spans multiple years — for example, a student loan repayment. When the dollar amount is paid in full the deduction shuts off.

   • Period % Cap: This field is used only with deductions based on disposable income. The number entered here tells the system the maximum percentage that can be deducted from the employee’s pay for the pay period.

   • Affects State Taxable Income:

   • • Check this box if this deduction/benefit affects state taxable income.

     • Leave the box unchecked if this deduction/benefit does not affect state taxable income. For example, some retirement deductions are subject to federal income tax, but not state income tax.

   • Affects Disposable Income:

   • • Check this box if this deduction/benefit is affected by disposable income. For example, garnishments can be affected by disposable income. See Garnishment Deductions for more information.

     • Leave the box unchecked if this deduction/benefit is not affected by disposable income.

   • Liability Account Mask / Liability Element Value:

   • • When the Allow Full Deduction Account Mask setting in Payroll Configuration is set to Yes, the label on this field will be Liability Account Mask, and you'll enter an account mask in this field.

     • When the Allow Full Deduction Account Mask setting in Payroll Configuration is set to No, the label on this field will be Liability Element Value, and you'll select a value from the pull-down list. See About the Employee Liability Account for more information.

Continue with the Employer Information fields.

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