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.

Term	Definition
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 HR.