Understanding Deductions

Payroll Interface recognizes two types of deductions: benefit deductions and general (non-benefit) deductions. Benefit deductions are deductions that are associated with benefit programs, and include deductions for health plans, life insurance plans, and other benefit plans. General deductions are deductions that typically are not associated with benefits, and include deductions such as parking fees, and union dues.

You can set up and maintain deductions using Payroll Interface and the Manage Base Benefits business process in PeopleSoft HR; or, alternatively, you can have the third-party payroll system manage deductions.

Note: To simplify data entry, conversion, and maintenance issues, you may want to have the third-party payroll system manage deductions. Certain types of deductions, such as garnishments, are highly confidential and are almost always maintained in the third-party payroll system.