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Employee Deductions

Overview

  • Deductions can be added to employees to be taken each pay period.
  • Amounts can be entered so deductions do not exceed specified limits.
  • Negative deductions can be entered to offset other deductions. The deduction
    amount must be positive overall within a deduction type.
  • For example, a negative deduction for Section 125 can be used as long as the
    employee has other Section 125 deductions that sum to a positive amount.
  • Loans can be tracked to stop deducting when re-paid.
  • Employer contribution amounts are tracked and shown on pay stubs.

Add Deduction

  1. Menu>Employee>Deductions
  2. Click the 'Add Deduction' button.

Company Level Information

  1. Data entered on deductions in the Company Deduction tab will be listed in this section.
  2. It can be overwritten per employee if the amounts should be different.

Employee Level Information

  1. Select the deduction from the drop down list. Deductions in the list are based on the Company Deductions.
  2. Company Level Information is listed on the left.
  3. Enter the start date of the deduction. Deductions start based on the criteria selected in the Company/Deduction tab.
  4. End dates are used to stop deductions. Deductions with end dates prior to the pay date will not be taken in payroll.
  5. Priority Order is used for multiple deductions and are taken in the order listed in case there is not enough pay to include them all.

Employee Cost Override Section

  1. If amounts are entered in the Company Deduction and are correct for the employee, you do not need to enter any data in the Override Section.
  2. If amounts are not set up in the Company Deduction or they are *incorrect* for the employee, enter amounts in the Override Section.
  3. Select 'Gross' or 'Net' in 'Based On Override' field. Net is used for disposable wages on garnishments.
  4. Select Dollar or Percent.
  5. Enter the per pay period amount to be taken.
  6. If the deduction has a limit, select Dollar or Percent in the 'Cap Amount Type Override' field.
  7. Enter the Cap Amount.
  8. Enter the Annual Maximum, if any. If an Annual Maximum is entered at the Company Level, only enter one here if it's different.

Global Limits

  1. Some deduction types have annual maximums that are governed by federal rules, such as 401(k).
  2. These rules are automatically built into TRAXPayroll so they are not exceeded each year.
  3. They are listed in the company and employee deductions.
  4. Employees can elect a lesser annual maximum if desired.

Loans

  1. The Starting Balance field will be available for loan deduction types.
  2. Enter the loan amount and it will stop deducting when this amount is reached.

  1. Once loan deductions have been collected in payroll, the remaining balance due will be shown along with the starting balance that was entered.

Employer Cost Override Section

  1. If amounts are entered in the Company Deduction and are correct for the employee, you do not need to enter any data in the Override Section.
  2. If amounts are not set up in the Company Deduction or they are *incorrect* for the employee, enter amounts in the Override Section.
  3. Employer amounts can be based on the employee's contribution or their wage.

What's Next

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