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Company Deductions - Add

Overview

  • Payroll deductions are added at the Company level, then added to the applicable employees.
  • Deductions can be set up to be paid by employees, employers or both.
  • Employer contributions are common for health benefits and retirement savings plans
  • Employer contribution amounts are shown on employees' pay stubs.

Add Company Deduction

  1. Menu: Company>Deductions
  2. Click the Add Deduction button.

  1. Select the Deduction Type from the drop-down list. Each deduction type has special taxing rules, so it's very important to select the correct one.
  2. Enter a code, name, and start date. The code and name will be listed on payroll reports. The start date defaults to today; if you want it effective in the future, enter a later date.
  3. Entering an end date will stop the deduction based on that date.
  4. Select whether the deduction is paid by the employee, employer or both.
  5. The deduction can be used in payroll based on the Pay Date, Pay Period Start Date, or Pay Period End Date. The deduction needs to be active as of this dateto be taken in payroll.
  6. Garnishments, tax levies and child support deductions have an option to have TRAXPayroll collect and pay them on your behalf.
  7. Checking the 'Collectible'' box allows the payee information to be entered on the employee's deduction for TRAXPayroll to send it to the appropriate agency.

Employee Cost

  1. Select Gross or Net from the drop down.
  2. Amount Types are Dollar or Percent.
  3. If a deduction amount is standard for all employees, the per pay period amount is entered here. Otherwise, the amount is entered when adding the deduction to the employee.
  4. Cap Amounts are used to stop deductions once the amount is reached.
  5. Annual Minimums can be entered to collect a threshold amount each year.
  6. Annual Maximums are used to limit the contribution amounts each year.
  7. Ledger Codes and Names are used for custom General Ledger reports.

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.

Employer Cost

  1. The employer cost section of the deduction is allowed when the deduction is set to be paid by 'Employer' or 'Both'.
  2. Employer amounts are based on Wage or Employee Contribution.
  3. Select Dollar or Percent.
  4. TRAXPayroll calculates the employer match for 401(k) Safe Harbor plans.
  5. If a deduction amount is standard for all employees, the per pay period amount can be entered here.
  6. If deduction amounts differ per employee, leave the employer cost section as is and enter the amounts individually on the employee's deduction record.
  7. Cap Amounts are used to stop contributions once the amount entered is reached.
  8. Annual Maximums are used to limit the contribution amounts each year.

Other

  1. Override Allowed determines if the amount can be entered on the employee deduction or if it is the same for all employees.

Excluding Wages from Deduction Amounts

  1. Some pay types should not be included when calculating certain deductions that are set to a percentage of the employee's wage.
  2. For example, companies may not want 401(k) amounts to be calculated on Commissions.
  3. This exclusion is for percent calculations only, it does not affect flat dollar elections.
  4. Each pay type has the option to be excluded from each deduction type using this check box.
  5. Click the Save button.

What's Next

Related Links:

Company Deductions
Company Menu