PeopleSoft Enterprise Payroll for North America 9.1 PeopleBook

Defining Deductions

This chapter provides an overview of deductions and discusses how to:

Create deduction subsets.
Set up deductions.
Define general deductions.
Define benefit deductions.
Assign general deductions to a company.

See Also

Setting Up Garnishments

(CAN) Setting Up Additional Canadian Payroll Functionality

(USA) Setting Up Additional U.S. Payroll Functionality

(USF) Setting Up Additional U.S. Federal Payroll Functionality

Understanding Deductions

This section lists prerequisites and discusses:

The four steps to defining deductions.
General deductions and benefits deductions.

Prerequisites

Before you begin defining deductions:

Define special accumulator codes on the Special Accumulator table.
Read through the sections that describe how to set up deductions tables.
Map out how you want the deductions, general deductions, and benefits to be defined and segregated within the system before you actually set them up.
As with earnings, you may want to develop a deduction worksheet on which you can put information to set up deductions in the related tables.

See Also

Establishing Special Accumulator Codes

The Four Steps to Defining Deductions

To define how you want the system to process a deduction, follow these four general steps:

Use the Deduction Table component (DEDUCTION_TABLE) to select a plan type, enter a deduction code, and specify the deduction processing rules, including the priority of the deduction, how the deduction affects taxes, related general ledger account codes, and other special payroll process indicators, such as how arrears should be handled.
Use the General Deduction Table component (GENL_DEDUCTION_TBL) to define the rules for the actual calculation of general deductions such as parking or union dues.
Use the Company General Deductions component (GDED_COM_TBL) to build a general deduction plan using the general deductions you have set up.
Use the Benefit Program Table component (BEN_PROG_DEFN) to define the rules for the actual calculation of benefit deductions such as health plans and dental plans.

General Deductions and Benefit Deductions

In Payroll for North America, there are two types of deductions: general (non-benefit) deductions and benefit deductions. The system uses different deduction rules depending on the type of deduction that you're setting up.

Deduction Table Component	Defines the deduction processing rules for both general deductions and benefit deductions.
General Deduction Table Component	Defines the deduction calculation rules for general deductions, such as parking fees and union dues.
Benefit Program Table Component	Defines the deduction calculation rules for benefit deductions, such as health plans and dental plans.

Note. While the system enables you to set up benefits as general deductions rather than benefit deductions, we recommended against this because the general deductions cannot process the complex calculations and rules needed for some benefit deductions, such as 401(k) participation.

Whether you are setting up a general deduction or a benefit deduction, you must set up corresponding entries on the Deduction Table component. For example:

If you're setting up a 50.00 USD general deduction for parking, indicate the dollar amount and any special calculation routines and parameters using the General Deduction Table component. Then use the Deduction Table component to indicate that this is an after-tax deduction.
Similarly, if you're setting up a benefit deduction for a monthly life insurance premium, use the Benefit Program Table component to enter the plan and the associated rates, rules, and routines that determine the cost of the deduction. Then use the Deduction Table component to indicate that this, too, is an after-tax deduction.

Note. General deductions are set up using Payroll for North America. Benefit deductions are set up using Payroll for North America and the Manage Base Benefits business process in PeopleSoft Enterprise Human Resources.

Creating Deduction Subsets

To set up deduction subsets, use the Deduction Subset Table (DED_SUBSET) component.

This section provides an overview of deduction subsets and lists the page used to create deduction subsets.

Understanding Deduction Subsets

A deduction subset is a group of deductions that you select from the standard set of deductions that you define for your company. Use deduction subsets to process only a subset of the deductions that have been set up on an employee's record. For example, when running a bonus payroll, you may want to have 401(k) and garnishments deducted from the bonus checks but not medical, dental, and so on. A deduction subset is set up with only 401(k) and garnishments deductions. The subset is added to the pay calendar, which sends it to the paysheets. When the payroll is run, any deductions that are not in the subset are not taken from any of the checks. This enables overriding the deductions on a group of employee's without having to look up each individual employee and entering a one-time override on the paysheet.

You can define as many deduction subsets as needed. As you establish deductions on the Deduction table, you can include each one in as many of the deduction subsets as needed. You can also set up a deduction subset ID with which you associate no deductions at all. You could use this no-deductions subset on pay runs for which you want to ensure that no deductions are taken.

Note. Create the deduction subset before defining the deductions so that the subset is available for use when creating the deduction codes. If you were to create the subsets after defining the deductions, you would have to go back into the Deduction table in Correction mode to add the deduction subset to the appropriate deductions. Correction mode access is rarely given to users.

Page Used to Create Deduction Subsets

Page Name	Definition Name	Navigation	Usage
Deduction Subset Table	DED_SUBSET	Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Subset Table, Deduction Subset Table	Define subsets of deductions.

Setting Up Deductions

To set up deductions, use the Deduction Table (DEDUCTION_TABLE) component.

This section provides overviews of the Deduction table, deduction classifications, U.S. tax considerations, and Canadian deductions, and discusses how to:

Specify the deduction priority.
(USF) Specify federal distribution destinations.
Specify deduction and tax classifications.
Specify U.S. and Canadian tax effect considerations.
Establish parameters for partial deductions and arrears.
Specify the deduction frequency schedule.

Understanding the Deduction Table

The Deduction Table component defines the tax effect on deduction types and specifies how the system processes arrears and other special deduction considerations during payroll processing. Deductions consist of all payroll deductions and employer contributions to benefit plans—not including taxes. We refer to deductions for taxes simply as taxes.

Deductions on the Deduction Table component are grouped by plan type. The plan type that you select is critical in the deduction process, because it indicates to the system from which component — General Deduction Table or Benefit Program Table—to retrieve the deduction calculation rules. The plan type code for general deductions is always 00. If you want to create your own plan types, use Z0 through ZZ.

When you assign new codes, you must assign a code in the correct range and identical to the one defined in the General Deduction Table component or Benefit Program Table component, otherwise the deduction is not calculated.

Note. Each entry on the General Deduction Table component or the Benefit Program Table component must have a corresponding entry on the Deduction Table component for payroll to process the deduction. Otherwise, you receive an error during pay calculation.

Understanding Deduction Classifications

Deduction classifications have a significant effect on how the system calculates tax amounts during payroll processing. Some deductions may have more than one classification. For example, retirement plan deductions, such as 401(k) benefit deductions, can have both before- and after-tax classifications as well as a nontaxable classification for any employer contributions. And certain benefits, such as life insurance, may have a before- or after-tax classification for the employee contribution in addition to a nontaxable or taxable classification for the employer contribution.

For example, suppose your company has a life insurance plan that provides coverage in an amount equal to three times your base salary of 40,000 USD a year. You pay for the after-tax deduction portion of the plan, while your company pays for the nontaxable benefit portion. And because of Internal Revenue Service rules governing employer-paid insurance for coverage over 50,000 USD, there is also a taxable benefit classification for the plan.

Note. Remember that each entry on the General Deduction Table component or the Benefit Program Table component must have a corresponding entry on the Deduction Table component for payroll to process the deduction. Otherwise, you receive an error during payroll calculation.

(USA) U.S. Deduction Classifications

Even though a deduction may have more than one classification, it is still considered only one deduction. For example, a 401(k) plan might consist of a standard before-tax portion, an after-tax portion for those employees who want to contribute more to the plan, and a nontaxable portion relating to the employer's matching contribution.

To define a deduction with multiple classifications, click the Add button in the Tax Classifications scroll area of the Tax Class page to insert another class. Remember that the order in which deductions are calculated is determined by the priority within classification.

If, after taking a before-tax deduction and calculating taxes, the system is unable to take an after-tax deduction with a higher priority number than the before-tax deduction, it returns to the beginning. It then recalculates taxes without taking the before-tax deduction and uses the remaining amount to take the after-tax deduction.

As long as an employee has enough remaining pay for the system to take all deductions, deduction priority, while still part of the calculation, is not particularly important. Priority becomes important when the employee doesn't have enough pay to satisfy all deductions. When this occurs, the system starts with the deductions that have the highest priority (those with the lowest deduction priority numbers) and takes the deductions until it reaches the minimum net pay requirements defined in the Pay Group table. Define deduction priority order on the Deduction Table - Setup page.

(CAN) The Logic Behind Canadian Sales Tax Calculations

When a particular deduction is identified as subject to a sales tax, the sales tax is calculated according to the rates that are specified for each province on the Canadian Tax Table - Tax Rates, Credit and Other page for goods and services tax (GST) and Canadian Tax Table - Provincial Rates page for other sales taxes. For this reason, any deductions that do not have the same sales tax application for all provinces must be set up as separate deduction codes. For example, the same deduction might be represented by two deduction codes:

One subject to provincial sales taxes.
One not subject to provincial sales taxes.

For GST and harmonized sales tax (HST) sales tax processing, the system determines which tax type to apply based on the employee's tax location, providing that the deduction has been set up with both the GST and HST sales tax types specified.

When the system calculates provincial sales tax on insurance (PSTI), it uses the employee's province of residence on the Name/Address page of the Personal Data table for employee-paid portions of a deduction. However, the system uses the employee's tax location on the Payroll page of the Job Data table when calculating PSTI for the employer-paid portions. All other sales tax types use the employee's tax location when calculating the applicable tax.

Canadian deduction classifications are discussed in further detail in the description of the Deduction Table - Tax Effect page.

Note. Depending upon what agreements you have with benefit carriers, a provincial premium tax (PPT) rate may or may not be required at your site.

(USA) Understanding U.S. Tax Considerations

Payroll for North America sets the taxable gross used for calculation of state and local income tax withholding to the taxable gross for federal withholding. Similarly, the system assumes the taxable gross for state unemployment and disability to be the same as the taxable gross for federal unemployment. However, some states and localities do not follow federal rules for the taxability of all types of benefits. Payroll for North America provides taxable gross definitions as a means of overriding the taxability rules that you specify in the Deduction table.

PeopleSoft maintains state and local taxable grosses that have been adjusted for 401(k), section 125, Thrift Savings Plan (TSP), group-term life plans (GTL), health savings account (HSA), health savings account employer contribution (HSR), and tips. You can add your own entries to the Taxable Gross Definition table for other types of deductions that need to be adjusted.

(CAN) Understanding Canadian Deductions

The following are examples of benefit deduction setups and the expected resulting calculations for Ontario and Quebec. To set up these benefit deductions and enter information (such as deduction classification, which sales tax types the deduction is subject to, and effect on taxable grosses), use the Deduction Table - Tax Class and Deduction Table - Tax Effect pages.

Example 1: Ontario—Insurance Other Than Life Insurance (Plan Type 10 and 30)

Define on the Deduction table:

Deduction Classification	Sales Tax Type	EE or ER	Effect on Taxable Grosses	Notes
After-Tax	None	EE pays	None
Nontaxable Benefit	None	ER pays	None

Example: Total Premium = 100 CAD per month:

Employer pays 60 CAD

Employee pays 40 CAD

Deduction Class	Sales Tax Type	Amount	Calculation
After-Tax	None	40 CAD
Nontaxable Benefit	None	60 CAD

Class	Premium
EE pays	40 CAD
ER pays	60 CAD

Example 2: Ontario—Life Insurance (Plan Type 20)

PPT = 2% Ontario Provincial Premium Tax

PSTI = 8% Ontario Provincial Sales Tax

PSTI = 9% Quebec Provincial Sales Tax

Province of residence = QC (Quebec)

Province of Employment (Tax Location) = ON

Define on the Deduction table:

Deduction Class	Sales Tax Type	EE or ER	Effect on Taxable Grosses	Notes
After-Tax	None	EE pays	None	Subject to PPT, PSTI
Taxable Benefit	None	ER pays	Adds to EE taxable grosses	Subject to PPT, PSTI
After-Tax	PPT	EE pays	None
After-Tax	PSTI	EE pays	None	Calculated on the total of prem + PPT
Taxable Benefit	PPT	ER pays	Adds to EE taxable grosses
Taxable Benefit	PSTI	ER pays	Adds to EE taxable grosses	Calculated on the total of prem + PPT

Example: coverage priced at 1 CAD per 1000 CAD:

Employer pays 0.60 CAD per 1000 CAD
Employee pays 0.40 CAD per 1000 CAD

For 100,000 CAD coverage: Total Premium = 100 CAD:

Employer pays 60 CAD

Employee pays 40 CAD

Deduction Class	Sales Tax Type	Amount	Calculation
After-Tax	None	40 CAD	100,000 × 0.40 / 1,000
Taxable Benefit	None	60 CAD	100,000 × 0.60 / 1,000
After-Tax	PPT	0.80 CAD	40 CAD × 2 %
After-Tax	PSTI	3.67 CAD	40.80 CAD × 9 %
Taxable Benefit	PPT	1.20 CAD	60 CAD × 2 %
Taxable Benefit	PSTI	4.90 CAD	61.20 CAD × 8 %

	Premium		PPT		PSTI		Total
EE pays	40 CAD	+	0.80 CAD	+	3.67 CAD	=	44.47 CAD
Adds to EE taxable gross	60 CAD	+	1.20 CAD	+	4.90 CAD	=	66.10 CAD
ER pays	60 CAD	+	1.20 CAD	+	4.90 CAD	=	66.10 CAD

Example 3: Quebec—Health Insurance (Plan Type 10)

PPT = 2.35% Quebec Provincial Premium Tax

PST = 7.5% Quebec Provincial Sales Tax

Define on the Deduction table:

Deduction Class	Sales Tax Type	EE or ER	Effect on Taxable Grosses	Notes
After-Tax	None	EE pays	None	Subject to PPT, PST
QC Taxable Benefit		ER pays	Adds to EE QC taxable grosses	Subject to PPT, PST
After-Tax	PPT	EE pays	None
After-Tax	PST	EE pays	None
QC Taxable Benefit	PPT	ER pays	Adds to EE QC taxable grosses
QC Taxable Benefit	PST	ER pays	Adds to EE QC taxable grosses

Example: Total Premium = 100 CAD per month:

Employer pays 60 CAD

Employee pays 40 CAD

Deduction Class	Sales Tax Type	Amount	Calculation
After-Tax Benefit	None	40 CAD
QC Taxable Benefit	None	60 CAD
After-Tax	PPT	0.94 CAD	40 CAD × 2.35 %
After-Tax	PST	3 CAD	40 CAD × 7.5 %
QC Taxable Benefit	PPT	1.41 CAD	60 CAD × 2.35 %
QC Taxable Benefit	PST	4.50 CAD	60 CAD × 7.5 %

Deduction Class	Premium		PPT		PST		Total
EE pays	40 CAD		0.94 CAD	+	3 CAD	=	43.94 CAD
Adds to EE Fed taxable gross		+		+		=	0 CAD
Adds to EE Quebec taxable gross	60 CAD	+	1.41 CAD	+	4.50 CAD	=	65.91 CAD
ER pays	60 CAD	+	1.41 CAD	+	4.50 CAD	=	65.91 CAD

Example 4: Quebec—Life Insurance (Plan Type 20)

PPT = 2.35 % Quebec Provincial Premium Tax

PSTI = 9 % Quebec Provincial Sales Tax on Insurance

Province of residence = QC

Province of employment (Tax Location) = QC

Define on the Deduction table:

Deduction Class	Sales Tax Type	EE or ER	Effect on Taxable Grosses	Notes
After-Tax	None	EE pays	None	Subject to PPT, PSTI
Taxable Benefit	None	ER pays	Adds to EE Fed taxable grosses	Subject to PPT, PSTI
After-Tax	PPT	EE pays	None
After-Tax	PSTI	EE pays	None	Calculated on the total of prem + PPT
Taxable Benefit	PPT	ER pays	Adds to EE Fed taxable grosses
Taxable Benefit	PSTI	ER pays	Adds to EE Fed taxable grosses	Calculated on the total of prem + PPT

Example: Coverage priced at 1 CAD per 1000 CAD:

Employer pays 0.60 CAD per 1000 CAD
Employee pays 0.40 CAD per 1000 CAD

For 100,000 CAD coverage: Total Premium = 100 CAD:

Employer pays 60 CAD

Employee pays 40 CAD

Deduction Class	Sales Tax Type	Amount	Calculation
After-Tax	None	40 CAD	100,000 × 0.40 / 1,000
Taxable Benefit		60 CAD	100,000 × 0.60 / 1,000
After-Tax	PPT	0.94 CAD	40 CAD × 2.35 %
After-Tax	PSTI	3.68 CAD	40.94 CAD × 9 %
Taxable Benefit	PPT	1.41 CAD	60 CAD × 2.35 %
Taxable Benefit	PSTI	5.53 CAD	61.41 CAD × 9 %

Deduction Class	Premium		PPT		PSTI		Total
EE pays	40 CAD	+	0.94 CAD	+	3.68 CAD	=	44.62 CAD
Adds to EE Fed taxable gross	60 CAD	+	1.41 CAD	+	5.53 CAD	=	66.94 CAD
Adds to EE Quebec taxable gross		+		+		=	0 CAD
ER pays	60 CAD	+	1.41 CAD	+	5.53 CAD	=	66.94 CAD

Pages Used to Set Up Deductions

Page Name	Definition Name	Navigation	Usage
Deduction Table - Setup	DEDUCTION_TABLE1	Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Table, Setup	Specify the deduction priority, subset ID, and other parameters for arrears payments and garnishments.
Federal Distribution Destinations	GVT_DEDUCT1_SEC	Click the Federal Data button on the Deduction Table - Setup page.	(USF) Further define the deduction and the interface in which it will be included.
Deduction Table - Tax Class	DEDUCTION_TABLE2	Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Table, Tax Class	Specify a deduction classification for deduction codes. You can also define how the deduction code affects special accumulators. (CAN) Specify sales taxes applicable to deduction codes.
Deduction Table - Tax Effect	DEDUCTION_TABLE3	Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Table, Tax Effect	Specify U.S. and Canadian tax considerations for the deduction that you are defining.
Deduction Table - Process	DEDUCTION_TABLE4	Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Table, Process	Establish parameters for partial deductions and arrears.
Deduction Table - Schedule	DEDUCTION_TABLE5	Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Table, Schedule	Specify which pay periods the deduction should be taken for the pay frequencies that you want to override.
Deduction/Frequency Report	PRCSRUNCNTL	Set Up HRMS, Product Related, Payroll for North America, Deduction Table Reports, Deduction/Frequency, Deduction/Frequency Report	Generate the PAY704 report, which lists information from the Deduction/Deduction Frequency table, which contains deduction priority, tax effect, and frequency of both benefit and nonbenefit deductions.
Deduction Class Report	PRCSRUNCNTL	Set Up HRMS, Product Related, Payroll for North America, Deduction Table Reports, Deduction Class, Deduction Class Report	Generate the PAY705 report, which lists deduction classification codes from the Deduction table.

Specifying the Deduction Priority

Access the Deduction Table - Setup page (Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Table, Setup).

Deduction Information

(USF) Federal Data	Click to access the Federal Distribution Destinations page.
Short Description	Enter a short description of the deduction. The short description that you enter here appears on the paycheck stubs by the check printing processes.
Deduction Priority	Enter a deduction priority number for the deduction code. The order in which the system takes deductions during pay calculation is based on the deduction priority number and the deduction classification. You define deduction classifications on the Deduction Table - Tax Class page. The lower the deduction priority number, the higher the priority of that deduction. For example, a deduction with a priority number of 20 is taken before a deduction with a priority number of 40. PeopleSoft recommends that you give each deduction a unique deduction priority number, particularly with before-tax deductions. A possible exception is instances where you may want to establish a set of related deductions with equal deduction priorities. For example, if your company offers a flexible benefits program that requires each employee to choose only one of several health plans, you may want to assign the same deduction priority to all the available health plans. Deductions can be included in special accumulators. If you assign a deduction to a special accumulator and that special accumulator is then used to calculate another deduction, the deduction priority of the first deduction must be less than the deduction priority of the deduction using the special accumulator.
Special Processing	Select a value from this field if the deduction is for a special process: Bond: Select if the deduction is for purchasing Canada Payroll Savings plans. Garnishment: Select if the deduction is for garnishments. This option initiates garnishment processing during payroll calculation. Union Dues: Select if the deduction is for union dues. When you select this option, the system automatically displays the Union Code field. Note. When no special process is applicable, this field should be empty.
Union Code	This field appears only when you select Union Dues in the Special Processing field. Select the union code that is associated with the union for which this deduction applies. Union codes are maintained in the CAN/USA - Union table.

Maximum Arrears Payback

Use this group box to specify how the system processes the payback of arrears balances. Note that any arrears processing method that you define here can be overridden either at the employee level on the Paysheet One-Time Deductions page, or on the General Ded Code Override (general deduction code override) page for general deductions.

No Maximum	Select this option if you do not want a maximum amount specified for arrears payback. If you select this field, the system deducts as much money as possible from the employee's paycheck to pay back the arrears balance.
Flat Maximum for Payback	Select this option if you want the maximum arrears payback to be a flat rate. For example, if an employee has an arrears balance of 500 CAD and a flat maximum amount for payback specified at 100 CAD, only 100 CAD is deducted on each paycheck for the arrears balance until the total 500 CAD has been withheld. Note that this amount is in addition to any regular deductions.
Factor x Regular Deduction	Select this option if you want to have a percentage of a regular deduction withheld for the payback of the arrears balance. This is in addition to the withholding of the regular deduction. For example, an employee has a medical deduction of 100 CAD with an arrears balance of 500 CAD. You may want to have the system deduct the normal 100 CAD medical deduction and specify that 50 percent of that amount to apply to the arrears balance. This makes a total deduction of 150 CAD. To do this, you select this field, and enter .5 as the factor.

Note. For benefit deductions, the maximum arrears payback method that you select applies to all employees with this deduction who are in arrears. To change the arrears processing method for an individual employee, you'll use Benefit Arrears/Frequency Ovrd (benefit arrears/frequency override) page.

Deduction Subset

If you want to include the deduction in any of the deduction subsets that you've defined on the Deduction Subset Table page, select an applicable deduction subset ID. You can include a deduction in any number of deduction subsets.

Subset ID

Select an applicable deduction subset ID.

Setting up a Garnishment Deduction

(USF) Specifying Federal Distribution Destinations

Access the Federal Distribution Destinations page (click the Federal Data button on the Deduction Table - Setup page).

Interface

Select the interface in which the deduction will be included: Not Applicable, OPM/RITS Interface, Thrift Savings Board Interface, or U.S. Department of Treasury.

To define a deduction as a military deposit deduction select OPM/RITS Interface.

Reporting Code

Select the reporting code to define the type of deduction.

To define a deduction as a military deposit deduction select Military Deposit Deduction.

Time Sensitive

Select if you want the deduction to be eligible for distribution through electronic certification system off-cycle processing.

Specifying Deduction and Tax Classifications

Access the Deduction Table - Tax Class page (Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Table, Tax Class).

Tax Classifications

Use this group box to assign a deduction classification—and if applicable—Canadian sales taxes to each deduction code. The order in which the system takes deductions during pay calculation is based on the deduction classification and the deduction priority number. Define the deduction priority on the Deduction Table - Setup page. After a deduction code is assigned a classification, (before-tax, after-tax, taxable benefit, and so on) the system uses that classification to decide which deduction takes precedence over the other when a specific deduction has multiple classifications—a 401(k) with both a before-tax and after-tax classification for example.

Deduction Classification

Use this group box to select an appropriate classification for the deduction.

After Tax	Select to reduce net pay. An example is a monthly parking deduction.
Before-Tax	Select to reduce net pay and taxable gross. One example is an employee contribution to a retirement program, such as a 401(k) plan.
Nontaxable Benefit	Select to represent an employer contribution with no taxable implications (not subject to tax) to an employee benefit plan such as a health plan or retirement plan (U.S. only). This contribution has no direct payroll effect.
Nontaxable Btax Benefit (nontaxable before-tax benefit)	Select to represent an employer contribution for a before-tax deduction (not subject to federal tax) to an employee benefit plan. Currently only used for the before-tax matching contribution to savings plans. Note. (CAN) Before-tax deductions affect federal and provincial taxes.
Taxable Benefit	Select to represent an employer contribution (subject to federal tax, U.S. only) on behalf of an employee, such as life insurance. This contribution increases taxable gross (for tax purposes), but does not increase total gross (for pay purposes). An example of a taxable benefit is the imputed income on employer paid group-term life insurance in excess of fifty thousand dollars.
(CAN) QC Taxable Benefit (Quebec taxable benefit)	Select to represent employer paid items that specifically affect Quebec income tax, such as contributions to employee dental and extended health plan benefits. The contribution increases Quebec provincial gross (for tax purposes), but does not increase total gross (for pay purposes). Unlike the taxable benefit deduction classification (which automatically increases Canadian income taxes [CIT] taxable gross) QC taxable benefit deductions must be defined to add to Quebec income taxes (QIT) taxable gross on the Deduction Table - Tax Effect page.

Note. Each deduction must have one or more deduction classifications to determine its effect on gross pay and taxable gross.

(CAN) Canadian Sales Tax

Use this group box to specify a sales tax type for each deduction classification that you define. The system then applies the appropriate sales tax percentage against the deduction classification amount calculated and adjusts the taxable gross amounts accordingly.

Note. PeopleSoft maintains the rates for GST, HST, PST, and PSTI on the Canadian Tax tables. The PPT rates are defined and maintained by you on the Canadian Company Tax table.

Note. If a deduction is subject to sales tax, you must insert rows to associate each sales tax type that is required for each applicable deduction classification.

None	Because you must assign each deduction classification a sales tax type, this is the system default value.
Goods and Service Tax	Select if the deduction code is subject to GST.
Harmonized Sales Tax	Select if the deduction code is subject to HST.
Provincial Sales Tax	Select if the deduction code is subject to PST.
Provincial Sales Tax Insurance	Select if the deduction code is subject to PSTI.
Provincial Premium Tax	Select if the deduction code is subject to PPT.

Note. To include sales taxes when calculating the value of employee benefits (taxable benefits), you must set up Deduction table entries for those benefit plans.

Special Accumulator(s)

If you want to roll together specific deduction codes to be used later during payroll processing, you enter a special accumulator code here. This code enables you to designate which deductions should add to or subtract from what can best be described as a bucket of earnings. This enables you to specify deductions that will affect the values in the special accumulators during payroll processing.

Deductions are calculated in priority order. If the deduction code has been specified as having an effect on a special accumulator, then the deduction amount is added to or subtracted from the accumulator. If a subsequent deduction is based on that accumulator, then the amount in the accumulator will be a combination of the earnings and the deductions specified.

Accum Code (accumulator code)	Select a special accumulator code. Before you enter the code on this page, you must set up the special accumulator code on the Special Accumulator table.
Effect on Special Balance	Select a value that specifies whether the deduction code adds to or subtracts from the special accumulator balance.

Note. If you are calculating a deduction that is based on a special accumulator, and that accumulator includes some deductions, then all of the deductions affecting that special accumulator must have a higher priority than the deduction using the accumulator.

Note. (CAN) For Canadian payrolls, all before-tax deductions and taxable benefits are calculated before after-tax deductions and nontaxable benefits. Therefore, you cannot base a before-tax deduction on a special accumulator that is affected by an after-tax deduction and have the after-tax amount used in the before-tax calculation, regardless of the deduction priorities.

(USA) Understanding U.S. Tax Considerations

(CAN) Understanding Canadian Deductions

Specifying U.S. and Canadian Tax Effect Considerations

Access the Deduction Table - Tax Effect page (Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Table, Tax Effect).

Tax Effects

Deduction Classification	The deduction classification specified on the Deduction Table - Tax Class page appears here.
(CAN) Sales Tax	The Canadian sales tax that is specified on the Deduction Table - Tax Class page appears here.

(USA) U.S. Only

Use this group box to indicate whether the deduction adds to, subtracts from, or has no effect on Federal Insurance Contributions Act (FICA) gross and federal unemployment tax (FUT) gross. These fields should be used only on the taxable benefit or before-tax portion of the deduction.

Effect on FICA Gross (effect on Federal Insurance Contributions Act gross)	Select how the deduction should affect the taxable gross for FICA: Adds To, No Effect, and Subtracts.
Effect on FUT Gross (effect on federal unemployment tax gross)	Select how the deduction should affect the taxable gross for FUT: Adds To, No Effect, and Subtracts.
Taxable Gross Comp ID (taxable gross component ID)	A code that the system uses to define a taxable gross base different from federal when calculating state and local taxes. This code points to information in the Taxable Gross Definition table, which serves two purposes: 1) Indicates which federal taxable gross level (such as federal withholding tax [FWT], FICA, and FUT) is used as a base for state and local taxable gross. 2) Indicates how to adjust (add to or subtract from) the state and local base when it differs from the federal definition. This field is unavailable for entry unless you selected the Taxable Benefit option on the Deduction Table - Tax Class page. Important! The taxable gross component ID that you specify must be unique! If it is not unique, it can cause the taxable grosses to be incorrect. Note. You cannot enter a taxable gross component ID on the Deduction table if you have not yet defined it on the Taxable Gross Definition table. Delivered values include: 125: Section 125 cafeteria plan. 401(k): 401(k) savings plan. GTL Group-term life. HSA Health savings account. HSR Health savings account employer contribution. TIP: Reported tips for an employee. For example, Pennsylvania does not consider 401(k) contributions as a reduction in state taxable wages. So the 401(k) deduction would be considered taxable for state withholding tax, but not federal withholding tax. To set this up, you first create a taxable gross component ID, such as 401K, on the Taxable Gross Definition table for Pennsylvania. You then enter 401K in the Taxable Gross Comp ID field on this page when defining the 401(k) deduction.
GTL/DPL (group-term life/dependent life)	Select: Add to GTL (add to group-term life): Select this value if you set up a regular or supplemental employee life plan that qualifies as a group-term plan. Add to DPL (add to dependent life): Select this value if you set up a dependent life plan that qualifies as a group-term plan. No Effect: This value is for other types of plans that do not qualify as group-term life plans. This field is unavailable for entry unless you selected the Taxable Benefit option on the Deduction Table - Tax Class page. If the deduction classification is anything other than taxable benefit this field is unavailable for entry.
Withhold FWT (withhold federal withholding tax)	When you select the Taxable Benefit option on the Deduction Table - Tax Class page, this check box is selected by default, indicating that the taxable benefit portion of the deduction should be withheld. If you do not want the taxable benefit portion withheld, deselect this check box. This field is unavailable for entry unless you selected the Taxable Benefit option on the Deduction Table - Tax Class page. If you want state income tax to be withheld for this earnings type, do not select this check box. Note. A Taxable Gross Definition table entry is always required when you want to stop state or local income tax withholding on a particular taxable benefit deduction, regardless of whether or not the state or locality follows the federal rule for including the amount in taxable income, and regardless of whether or not you have selected this check box for the deduction. See (USA) Updating the Taxable Gross Definition Table.

(E&G and USF) Add to FICA Credit (add to Federal Insurance Contributions Act credit)

This field appears on the page for education (E&G) if the plan type is Pension Plan (plan 80).

This field appears on the page for government (USF) if the plan type is Thrift Savings (plan 42) or Retirement (plan 70).

Education and government users select this check box if the corresponding deductions are being classified as part of FICA credit that is used to calculate the Massachusetts state tax. By default, this check box is not selected.

(CAN) Canadian Only

In this group box (with the exception of CIT gross), you specify how the deduction should affect the taxable gross amounts for each of these accumulators. You can specify whether a deduction adds to, has no effect on, or subtracts from the taxable gross amounts.

Important! This setup is a requirement for Canadian processing. It is imperative that you define deductions that affect T4A and RL-2 withholdings before they are processed. To ensure that all amounts are allocated to the proper accumulators for year-end processing, complete this setup prior to running the first payroll of the new tax year. Be aware that the corresponding deduction codes must be defined to the appropriate tax form definitions through the Tax Form Definitions table prior to running the year-end process.

Effect on QIT Gross (effect on Quebec income taxes gross)	Select Adds To if the deduction affects Quebec taxable gross. If the deduction is not subject to QIT, select No Effect. If the deduction is eligible for reducing Quebec taxable gross, select Subtracts.
Effect on CPP Gross (effect on Canada Pension Plan gross)	Select Adds To when deductions are subject to CPP contributions. If the deduction does not impact CPP contributions, select No Effect. If the deduction is eligible to reduce CPP contributions, select Subtracts. Note. Although CPP contributions are affected, these deductions are adding to or subtracting from the grosses.
Effect on QPP Gross (effect on Quebec Pension Plan gross)	Select Adds To when deductions are subject to QPP contributions. If the deduction does not impact QPP contributions, select No Effect. If the deduction is eligible to reduce QPP contributions, select Subtracts. Note. Although QPP contributions are affected, these deductions are adding to or subtracting from the grosses.
Effect on EI Gross (effect on Employment Insurance gross)	Select Adds To when deductions are subject to EI premiums. If the deduction does not impact EI premiums, select No Effect. If the deduction is eligible to reduce EI premiums, select Subtracts. Note. Although EI premiums are affected, these deductions are adding to or subtracting from the grosses.
Effect on QPIP Gross (effect on Quebec Parental Insurance Plan gross)	Select Adds To when deductions are subject to QPIP premiums. If the deduction does not impact QPIP premiums, select No Effect. If the deduction is eligible to reduce QPIP premiums, select Subtracts. Note. Although QPIP premiums are affected, these deductions are adding to or subtracting from the grosses.
Eff on True T4 Gross (effect on true T4 gross)	Taxable benefits should be defined as Adds To. Before-tax deductions should be defined as having No Effect. This field affects accumulated total employment income amounts, which are used for reporting, purposes. The Health Insurance Premium report (TAX102CN) is an example.
Eff on True RL Gross (effect on true RL gross)	Affects accumulated total employment income amounts that are used for reporting purposes. The Health Insurance Premium report (TAX102CN) is an example. Define taxable benefits as Adds To. Define before-tax deductions as having No Effect. Values are Adds To, No Effect, and Subtracts.
Effect on T4A Gross	Affects the accumulated taxable gross amount to establish separate income taxes to be reported on a T4A slip. Values are Adds To, No Effect, and Subtracts.
Effect on RL-2 Gross	Affects the accumulated taxable gross amount to establish separate QIT to be reported on an RL-2 slip. When Effect on RL-2 Gross is set to Adds To or Subtracts, the system automatically sets Effect on QIT Gross to Adds To or Subtracts, respectively. Values are Adds To, No Effect, and Subtracts.
Eff on Payroll Tax Gross (effect on payroll tax gross)	Affects an accumulated gross amount that is subject to Northwest Territories and Nunavut payroll tax. Values are Adds To, No Effect, and Subtracts.

(CAN) Understanding Canadian Deductions

Establishing Parameters for Partial Deductions and Arrears

Access the Deduction Table - Process page (Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Table, Process).

Partial Deduction Allowed

Use this group box to define parameters for deductions during deduction processing and arrears.

Partial Deduction Allowed	Select this check box if you want a partial deduction to be taken during deduction processing when there is insufficient pay to take the entire amount. Do not select this option for garnishment deductions.
Deduction Arrears Allowed	Select this check box to have the system transfer any uncollected amount for a deduction into an arrears balance. During subsequent payroll runs the system attempts to recover the balance in arrears from an employee's paycheck—up to the maximum controlled by the arrears payback amount on this table. If you set up an arrears payback deduction (such as a company loan or a vacation advance) on the Earnings Table - Taxes page, this check box must be selected. Important! If an employee is not paid during a regularly scheduled payroll and there are deductions scheduled to be withheld, those deductions are put into arrears if the Deduction Arrears Allowed check box is selected. Important! Do not select the Deduction Arrears Allowed check box for garnishments. Late or unpaid garnishments cannot be held in arrears—these are managed by the court system and are prohibited from being placed in arrears by garnishment regulations. If you select this check box for garnishments, unexpected or incorrect pay results may occur for both U.S. and Canadian customers.
Deductions Taken From Sep Chk (deductions taken from separate check)	Select to take the deduction from any additional check that an employee might get in a single pay period. You may want to select this check box for deductions for savings plan contributions.
Stop Deduction at Termination	Select to indicate not to take the deduction from the paycheck of a terminated employee. If an employee's termination date is equal or prior to the pay period end date, the deduction will not be taken. For example, most health insurance plans are prepaid—premiums deducted for this month are used to provide coverage for next month. If employees no longer have health benefits after they are terminated, the deduction shouldn't be taken.
Maximum Yearly Deduction	Enter an amount for any deductions that have a yearly limit. For example, there is a limit on the amount of before-tax portion 401(k) contributions an employee can make. For that deduction classification, enter the maximum contribution here, so the system will automatically stop after the deduction limit has been reached. The value that you enter here remains valid for one calendar year. It resets to zero at the start of the new year.
Liability Accounts - Non Commitment Accounting	Enter the general ledger liability account to which this deduction should be charged. At least one general ledger account must be entered for a deduction and a general ledger account is required for every deduction classification. Note. (E&G) The Expense Accounts - Non Commitment Accounting and Liability Accounts - Non Commitment Accounting fields are not applicable to education and government users.
Insufficient Match Pay Option	This field appears for 4x Savings and 6x FSA plans when the deduction class is Nontaxable, Nontaxable Before tax, and Taxable. Note. The insufficient match pay options only work with the Service Step table and Percent of Employee Investment options. Specify how the employer matching/nonmatching contribution should be paid in situations of insufficient net pay: Full Employer Match:Pay the entire employer contribution. No Employer Match:Pay no employer contribution. Recalculated Employer Match: Recalculate the employer contribution based upon the actual employee contribution. When using the service step table to base the employer match, the full or a portion of the employer contribution is made. Note. A recalculated match is not a prorated or partial match. The system recalculates the employer contribution based upon the effective percent of the new employee contribution considering insufficient net pay. Effective percent is calculated as: calculated employee contribution divided by employee's eligible earnings.

Specifying the Deduction Frequency Schedule

Access the Deduction Table - Schedule page (Set Up HRMS, Product Related, Payroll for North America, Deductions, Deduction Table, Schedule).

By default, each deduction comes out every pay period regardless of pay frequency. If you want a deduction to be taken out on a schedule other than every pay period, you must complete the Deduction Table - Schedule page.

Deduction Schedule

Pay Frequency

Specify the pay frequency that you want to override for those deductions that are not deducted every pay period. Values prompt from the Frequency table: Annual, Biweekly, Daily, Monthly, Quarterly, Semimonthly, and Weekly. If you select a Weekly frequency, you can select the Fifth Pay Period option only if you have also selected the first, second, third, and fourth periods. Likewise, for a Biweekly frequency you can only select the Third Pay Period option if you have also selected the first and second. Because a deduction with a monthly frequency is always taken once a month, there is no override for that pay frequency on this page. Suppose that you have a semimonthly payroll, but health deductions should only come out of the last paycheck of the month. In this case, you would select a pay frequency of Semimonthly and take a deduction in the second pay period.

Deduction Frequency

Use this group box to specify which appropriate pay periods to take the deduction for the pay frequency selected. You must insert a new row for every pay frequency for which you have a pay group defined.

First Pay Period through Fifth Pay Period

Select the appropriate period check boxes that you want the deduction to be taken in.

Note. If you want the deduction code to be taken each pay period, do not alter this page when you initially create the deduction code. The default for this page is every pay period for every pay frequency.

See Also

Setting Up and Working with Frequencies

Entering Special Options and Tax Methods for Earnings Codes

Setting Up and Processing Payback Deductions

Defining General Deductions

To set up general deductions, use the General Deduction Table (GENL_DEDUCTION_TBL) component.

This section provides an overview of general deductions and discusses how to:

Define how general deductions are calculated.
(USF) Define the distribution routing and summary levels.
(USF) Enter general deduction distribution information.
(USF) Enter general deduction distribution remittance frequency information.

Understanding General Deductions

In PeopleSoft HRMS, a general deduction is any deduction that isn't a benefit deduction. Charitable deductions, union dues, parking, garnishments, bonds, and so on all fit into this category. Use the General Deduction table to define how these nonbenefit deductions are calculated.

Setting Up Benefit Deductions as General Deductions

Even though the system enables you to set up benefit deductions as general deductions on the General Deduction table, we recommended against this because the general deductions cannot process the complex calculations and rules needed for some benefit deductions, such as 401(k) participation.

If you decide to set up benefit deductions on the General Deduction table rather than the Benefit Program table, you must:

Set up separate deduction codes for each tax class.

Even though the system enables you to set up one deduction code with multiple tax classes, you cannot do this if you are using the deduction code as a general deduction.

For example, you would require a deduction code for the after tax portion and a separate deduction code for the before tax portion.
Set up a separate general deduction for each deduction code.

For example, you would require a general deduction for the after tax deduction code and a separate general deduction for the before tax deduction code.

Pages Used to Define General Deductions

Page Name	Definition Name	Navigation	Usage
General Deduction Table	GENL_DEDUCTION_TBL	Set Up HRMS, Product Related, Payroll for North America, Deductions, General Deduction Table, General Deduction Table	Define how nonbenefit deductions are calculated.
Federal General Deduction Routing Information	GVT_GENL_DED_SEC	Click the Federal Data button on the General Deduction Table page.	(USF) Define the distribution routing level and summary level.
General Deduction Distribution	GVT_DED_DIST_TBL	Set Up HRMS, Product Related, Payroll for North America, Deductions, General Deduction Dist USF, General Deduction Distribution	(USF) Define general deduction distribution information.
Deduction Contact Information	GVT_DED_CONT_SEC	Click the Contact Information button on the General Deduction Distribution page.	(USF) Enter contact information for the general deduction distribution.
Deduction Distribution Information	GVT_DED_DIST_SEC	Click the Distribution Information button on the General Deduction Distribution page.	(USF) Enter distribution information for the general deduction distribution.
Deduction Remittance Information	GVT_DED_REMIT_FREQ	Click the Remittance Information button on the General Deduction Distribution page.	(USF) Enter remittance frequency information for the general deduction distribution.
General Ded/Frequency Report (general deduction / frequency report)	PRCSRUNCNTL	Set Up HRMS, Product Related, Payroll for North America, Deduction Table Reports, General Deduction/Frequency, General Ded/Frequency Report	Generate the PAY703 report, which lists information from the General Deduction/Deduction Frequency table, which contains payroll deductions that do not fit into a category that is covered by a benefit table, such as United Way, union dues, or parking fees.

Defining How General Deductions are Calculated

Access the General Deduction Table page (Set Up HRMS, Product Related, Payroll for North America, Deductions, General Deduction Table, General Deduction Table).

Note. For general deductions, you do not have to specify a plan type because it is always 00. However, there must be a matching entry on the Deduction table with a plan type of 00 using the same deduction code that you enter on this table.

General Deduction

(USF) Federal Data	Click to access the Federal General Deduction Routing Information page.
Deduction Calculation Routine	For each general deduction, indicate a specific deduction calculation routine for the system to use to determine the amount of the deduction. You can override any of these calculation routines at the employee level. Remember that regardless of which deduction calculation routine you select, the default deduction rate or percent and the calculation routine that you enter here can be overridden at the employee level. Values are: Flat Amount: Select this value to calculate the deduction as a flat amount and enter the amount in the Flat/Additional Amount field. However, if the amount varies from employee to employee, such as with charitable contributions, leave the Flat/Additional Amount field blank and enter the amount on the employee's Create General Deductions page. Percent of Federal Gross: Select this value to calculate the deduction as a percent of the employee's federal taxable gross. Enter the percent in the Deduction Rate or % (deduction rate or percent) field. Percent of Total Gross: Select this value to calculate the deduction as a percent of the employee's total gross. Enter the percent in the Deduction Rate or % field. Percent of Net Pay: Select this value to calculate the deduction as a percent of the employee's net pay. Enter the percent in the Deduction Rate or % field. Net pay is determined at the time that the deduction is calculated. You establish the priority of the calculation on the Deduction table. Percent of Special Accumulator: Select this value to calculate the deduction as a percent of the employee's special accumulators, such as 401(k) or TSP. Enter the percent in the Deduction Rate or % field; then select the appropriate special accumulator code. Rate x Total Hours: Select this value to calculate the deduction as a rate multiplied by total hours worked in a period. Enter the rate in the Deduction Rate or % field. This rate is multiplied by all the hours specified on employee paysheets during a pay period. Rate x Hours Worked: Select this value to calculate the deduction as rate multiplied by hours worked. Enter the rate in the Deduction Rate or % field. The system adds all employee earnings types that have the FLSA Hours Worked (Fair Labor Standards Act hours worked) check box selected in the Earnings table, and multiplies the total by the rate stated here. Rate x Special Hours: Select this value to calculate the deduction as a rate multiplied by special hours. Enter the rate in the Deduction Rate or % field, and select the special accumulator code to be used to accumulate the special hours. Select a special accumulator code in the Special Accumulator Code field. Special Deduction Calculation: Select this value to indicate that you've created a calculation for this deduction. Be sure to consult with your PeopleSoft Account Manager before making changes to the program. Percent of Special Earnings: Select this value to calculate the deduction as a percentage of the employee's special accumulators, such as 401(k). Enter the percentage in the Deduction Rate or % field, then enter the appropriate special accumulator code.
Deduction Rate or % (deduction rate or percent)	Enter the deduction rate or percentage of the nonbenefit deduction.
Special Accumulator Code	If you select either Percent of Special Accumulator or Rate x Special Hours as the deduction calculation routine, select the code of the special accumulator that you want associated with this deduction.
SetID	Enter the setID for the vendor. (The Vendor table is keyed by setID so when a vendor is entered, a setID must also be entered). This field applies only if you are using PeopleSoft Enterprise Payables to pay deductions withheld from employee paychecks to vendors—such as a garnishment collector or tax collection authority.
Vendor ID	Enter the ID of the vendor to whom monies for this deduction should be paid. The interface between Payroll for North America and PeopleSoft Enterprise Accounts Payable uses this vendor ID to extract data and create accounts payable (AP) vouchers. This field applies only if you are using Accounts Payable to pay deducted amounts to third parties. The prompt table lists only those vendors that are associated with the setID that you entered in the previous field.
Pay Mode	Enter the pay mode to use when creating AP vouchers. This field becomes available when you select a setID and vendor ID. It indicates when to pay the deducted amount to the vendor. When you run the extract program, the system reads the value that you entered in this field to determine whether to create a voucher for Accounts Payable. Values are: Pay as Deducted: Select this option if you want Accounts Payable to pay the vendor each time Payroll for North America calculates this deduction. Pay when Collection Completed: Select this option if you want Accounts Payable to pay the vendor only when the goal amount or deduction end date has been reached. (This pay mode is valid for general deductions and garnishments). Pay when Bond Price Met: If the deduction is for a bond purchase, select this option if you want Accounts Payable to pay the vendor only when the bond purchase price has been reached. Pay at Specified Date: Select this option if you want to pay the vendor on the date indicated on the run control page for the PY-AP Extraction - Deductions (PYAP_XDEDN) Application Engine process. This option is appropriate when deductions for more than one pay period must be extracted (for example, benefit deductions that are withheld every pay period and sent to the vendor at the end of the month).
AP Payment Date Type (accounts payable payment date type)	The PY-AP Extraction - Deductions process uses this date when it processes deductions with a pay mode of Pay at Specified Date. Indicate which type of date should be used to create the AP voucher. Values are: Check Date: Select this value if the date is a check date. Pay Period End Date: Select this value if the date is a pay period end date.
(CAN) Loan Processing (Canada)	Select this check box if you are establishing a deduction for Canadian low-interest loan paybacks. This activates the unique calculation routines that are used for low-interest loans. Important! Do not select this check box for deduction codes that are for home purchase or home relocation loans. The PeopleSoft system does not calculate the taxable benefit for these types of loans.
(CAN) Ben Admin Taxable Ben (Canada) (benefits administration taxable benefits [Canada])	Select this check box if you are a Canadian organization using PeopleSoft Enterprise Benefits Administration and want to identify the taxable benefit deduction codes specified on the Credit Allocation Hierarchy table.
Allow Update Via Self Service	Select this check box to include the deduction in any employee self-service transaction.

Amount Per Pay Period

Use this group box for deductions that are a flat amount for the month, regardless of the pay frequency. Set up each pay frequency with it's own entry. For example, a parking deduction for the month is 100 USD for all employees. Rather than setting up individual deductions for each pay frequency, you can set up one deduction with a flat amount of 100 USD. You can then enter a line for pay frequency weekly with an amount of 25 USD, pay frequency biweekly with an amount of 50 USD, pay frequency semimonthly with an amount of 50 USD and pay frequency monthly with an amount of 100 USD.

Flat/Additional Amount	If you select a deduction calculation routine that uses a deduction rate or percent, you can also enter an additional or flat amount per pay period to be deducted. However, you must indicate the amount here only if it's the same for all employees within a pay frequency. If it varies from employee to employee, enter the amounts for each employee on the Create General Deductions page.
Pay Frequency	If you have a deduction that varies by pay frequency, you must indicate the dollar amount to be taken each pay period for each pay frequency. Values prompt from the Frequency table.

(USF) Defining the Distribution Routing and Summary Levels

Access the Federal General Deduction Routing Information page (click the Federal Data button on the General Deduction Table page).

Routing Level

Select a routing level to group the deductions. They can be grouped according to distribution code such as Federal Employee Retirement System Retirement or the groupings can be defined at the employee level with Routing Number and Account Number. If the deduction is not routed, leave the routing level at the default value No External Routing Required.

Summary Level

Select a summary level to further define whether the deduction data is to be summarized or detailed. The data can be summarized by distribution code or defined at the employee level. If the deduction is not summarized, use No Summary - Ded Level Only (no summary - deduction level only).

(USF) Entering General Deduction Distribution Information

Access the General Deduction Distribution page (Set Up HRMS, Product Related, Payroll for North America, Deductions, General Deduction Dist USF, General Deduction Distribution).

Contact Information

Click to access the Deduction Contact Information page.

Distribution Information

Click to access the Deduction Distribution Information page.

Remittance Information

Click to access the Deduction Remittance Information page.

(USF) Entering General Deduction Distribution Remittance Frequency Information

Access the Deduction Remittance Information page (Click the Remittance Information button on the General Deduction Distribution page).

Select the remittance frequency and then select the pay period in which distribution should be paid.

Defining Benefit Deductions

Benefit deductions are set up on separate deduction pages.

See Also

Building Base Benefit Programs

Assigning General Deductions to a Company

To assign general deductions to a company, use the Company General Deductions Table (GDED_COM_TBL) component.

This section discusses how to assign general deductions to a company.

Page Used to Assign General Deductions to a Company

Page Name	Definition Name	Navigation	Usage
Company General Deductions	GDED_COM_TBL	Set Up HRMS, Product Related, Payroll for North America, Deductions, Company General Deductions, Company General Deductions	Assign general deductions to each company. Use the basic general deductions that you have already set up to build a general deduction plan for which employees in the company will be eligible.

Assigning General Deductions to Each Company

Access the Company General Deductions page (Set Up HRMS, Product Related, Payroll for North America, Deductions, Company General Deductions, Company General Deductions).

Deductions

Deduction Code

Enter a deduction code to assign to the company.

Routing Level	Select a routing level to group the deductions. They can be grouped according to distribution code such as Federal Employee Retirement System Retirement or the groupings can be defined at the employee level with Routing Number and Account Number. If the deduction is not routed, leave the routing level at the default value No External Routing Required.
Summary Level	Select a summary level to further define whether the deduction data is to be summarized or detailed. The data can be summarized by distribution code or defined at the employee level. If the deduction is not summarized, use No Summary - Ded Level Only (no summary - deduction level only).

Contact Information	Click to access the Deduction Contact Information page.
Distribution Information	Click to access the Deduction Distribution Information page.
Remittance Information	Click to access the Deduction Remittance Information page.