Setting Up Employee General Deductions

Deduction Code

Select the code for the general deduction that the system should take for this employee. The prompt table lists only those deductions defined for the employee's company on the Company General Deductions page.

(CAN) For Canada Payroll Savings (CPS) programs, if both non-RRSP and RRSP options are offered, two deduction codes are necessary. Employees may elect to contribute to both types of accounts concurrently. In this event, two separate general deduction data records must be created; one for non-RRSP contributions and the other for RRSP contributions.

Effective Date

Enter an effective date.

(CAN) For CPS plans, this date is validated against the election period(s) specified on the Canada Payroll Savings Campaign table to ensure that changes to contribution information are entered for allowable periods.

Take on all Paygroups

This option applies only to employees who have jobs in more than one pay group. It instructs the system whether to take the deduction when the employee's pay group is not being processed. This field works in conjunction with the Single Check for Multiple Jobs (single check for multiple jobs) field on the Company - Default Settings page and the Priority Number field on the Pay Group Table - Definition page.

If the Single Check for Multiple Jobs option is selected, and you select Take on all Paygroups, the system processes this deduction each time a check is issued for the employee, regardless of whether the employee's job in the primary pay group is being paid.

If the Single Check for Multiple Jobs option is not selected, and you select Take on all Paygroups, the deduction is always taken when the job in the primary pay group is paid. If you have not defined a primary pay group for the employee, the system takes the deduction only if the job with the lowest priority number, as designated on the Pay Group Table - Definition page, is being paid.

Calculation Routine

The deduction calculation routine determines how a deduction is calculated for an employee. Values are:

Default to Deduction Table: Select to use the deduction calculation routine that is specified on the Deduction table. If you select this option, the system takes the amount or percent from the Deduction table; thus, the Flat/Addl Amount (flat/additional amount) field and the Deduction Rate or % (deduction rate or percent) field on this page are not available for entry. To specify a different amount or percent, you must select an alternate deduction calculation routine and the appropriate amount or percent.

Flat Amount: Select to establish the deduction as a flat amount. Enter the amount in the Flat/Addl Amount field, which is treated as an amount per pay period.

(CAN) Select Flat Amount for Canada Payroll Savings programs.

Percent of Federal Gross: Select to calculate the deduction as a percent of federal gross income. Enter the percent in the Deduction Rate or % field.

Percent of Net Pay: Select to calculate the deduction as a percent of net pay. Enter the percent in the Deduction Rate or % field.

Percent of Special Earnings: Select to calculate the deduction as a percent of a special accumulator, such as 401(k). Enter the percent in the Deduction Rate or % field. Special accumulator codes are defined on the General Deduction table.

Percent of Total Gross: Select to calculate the deduction as a percent of total gross income. Enter the percent in the Deduction Rate or % field.

Rate x Hours Worked: Select to calculate the deduction as rate multiplied by hours worked (hours with the Fair Labor Standards Act flag selected). Enter the rate in the Deduction Rate or % field.

Rate x Special Hours: Select to calculate the deduction as a rate multiplied by hours that have a special accumulator associated with them. Enter the rate in the Deduction Rate or % field. The special accumulator code is defined on the General Deduction table.

Rate x Total Hours: Select to calculate the deduction as a rate multiplied by total hours. Enter the rate in the Deduction Rate or % field.

Special Deduction Calculation: Select to indicate that you have written a special calculation that you want to use. This option requires assistance from an IT person.

Ded stopped by Self Serv User (deduction stopped by self-service user)

If the employee stops a voluntary deduction using the Voluntary Deductions transaction in the ePay self-service application, the system will automatically select this check box.

Distribution Information

(USF) Select to access the Employee Distribution page. This link is visible only for U.S. Federal Government users.

Deduction Rate or % (deduction rate or percent)

Depending on the value that you select for the Deduction Calculation Routine field, you may need to enter a rate or percent in this field. This will determine how much to take out for the deduction.

(CAN) Loan Interest % (loan interest percent)

If this deduction is for payback for a low-interest loan, enter the interest rate here. If the loan interest percent specified here is less than the prescribed interest percent in the Canadian Company Tax table, the system calculates a low-interest loan taxable benefit for the employee. If the field is left empty, it is assumed that the interest rate is zero.

Flat/Addl Amount (flat/additional amount)

Depending on the value that you select for the Deduction Calculation Routine field, you may need to enter a flat or additional amount in this field.

Goal Amount

Enter the limit for the total amount of the deduction. After this goal is met, the deduction ends. However, if there is a maximum yearly deduction, and the maximum has been reached, the system does not take the deduction, regardless of whether the goal amount has been reached.

For example, if the maximum yearly deduction amount allowed for United Way is 80 USD, and an employee's goal amount for United Way is 100 USD, the system stops taking the deduction when 80 USD is reached.

Current Goal Balance

Displays the total amount taken to date from the employee's pay for this deduction. The system updates this amount after every payroll run, during the Pay Confirmation COBOL SQL process (PSPCNFRM). When the current goal balance equals the goal amount for this deduction, the system automatically stops taking the deduction. If you want the deduction to start again, you must increase the goal amount to the new total to be deducted.

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Each time the general deduction is updated, the system indicates whether an online user or a self-service web user made the update, and it displays the date of the most recent update. Online users can make updates online using the Create General Deductions page. The employee, also known as the web user, can update using the Voluntary Deductions transaction in the ePay self-service application.

Routing Number

Enter the routing number (bank transit number). The number must be nine digits. If the account type is Checking or Savings, the system validates the bank transit number that you enter.

Edit Account Number

Select to update the bank account number. This field appears when the encryption process has been run and the account number previously existed. When selected, the existing read-only account number is cleared from the field for you to enter a new one.

Account Number

Enter the bank account number.

If data encryption is enabled and the encryption process is run for the GENL_DEDUCTION record, the account number is encrypted in the database if it belongs to a country that is specified on the Define Country for Encryption Page. Also, the account number appears as masked on this page. An exception to this is when the user is assigned the Bank Account Admin role, and this role is defined on the Grant Unmasked Access Page for the GENL_DEDUCTION record. In this case, the user sees the unmasked account number.

See Also Understanding Data Encryption for Payroll for North America.

Account Type

Enter the type of account: Checking, Expense, Issue Check, Liability, NA (not applicable), and Savings.

Maximum

Select this check box to specify a limit on how much the system deducts from the employee's pay each pay period to reduce an arrears balance.

Maximum Amount

Indicate a limit for how much the system takes when a deduction amount goes into arrears. The amount that you specify here becomes the maximum amount that can be deducted from the employee's pay each pay period to reduce an arrears balance.

An arrears balance is created when an employee's net pay in a pay period is insufficient to cover a deduction. In the subsequent pay period, the system may attempt to recapture the arrears balance from the employee's pay during payroll processing; this depends on how you set up deduction payback rules on the Deduction table.

There are several ways to use the maximum arrears payback fields:

• To use the payback settings on the Deduction table, leave both fields blank.

• To override the payback settings on the Deduction table, select the Maximum check box and specify the maximum payback amount per pay period in the Maximum Amount field.

• To stop the system from taking the deduction for the arrears, select the Maximum check box, and leave the Maximum Amount field blank.