Add Deduction Code allows you to add a new Deduction Code to your database. Once added, the code can be used in the Operations and PayBill divisions of StaffSuite when adding a timesheet, payroll balance forward, etc.

Adding a Deduction Code

1. In the Code field, enter the user-defined code to identify this deduction. Whenever you are able to select a Deduction Code from a list of options, the information you enter in this field will display in the drop list. Therefore, codes should indicate the type and category associated with the deduction code. For example, if you have a garnishment deduction based on a dollar amount AND a garnishment deduction based on percentage of earnings, you should make sure your code delineates the two (e.g., GARN$ and GARN%). Note, however, that the code must be unique. This is a REQUIRED field.

2. In the Description field, enter a description that will be associated with the previously entered Code. In many cases, this will simply be a repeat of the information entered in the Code field. However, if you entered an abbreviation in the Interface Code field (like GARN%), this field should contain a fuller description of the Deduction Code. This is a REQUIRED field.

3. In the Category field, use to select from a list of categories. Your selection here affects some of the other fields on this window. For example, if you select Child Support, the Child Support Single Rate and Child Support Married Rate fields become active. It also determines the contents that will display in the Type drop-down list. Options are 125 Cash (125 pre-tax cafeteria plan with cash), 125 No Cash (125 pre-tax cafeteria plan with no cash), 401K, Child Support, Employer (see below), Garnishment, Levy (refers only to federal levies - state levies should use the garnishment category), and Regular. This is a REQUIRED field.

The Employer category is designed for discretionary deductions (uniforms, tools, breakages, etc.). The Federal Government has established guidelines for these types of deductions based on the Fair Labor Standards Act (FLSA). Basically, these guidelines guarantee that the employee will still have a percentage amount of "take home" pay. If you select the Employer category, StaffSuite performs calculations when Payroll is processed to insure that the Employee's "take home" pay conforms to FLSA standards. Due to these standards, an Employer Category Deduction is always assigned the lowest priority.

4. In the Type field, use to select from a list of types. This list is filtered based on the category you entered in the previous field. Options are Advanced Pay or Loan (if the category is Regular), Bracketed Fixed $ (if the category is Regular), Bracketed Pct (if the category is Regular), Counter Fixed $ (if the category is Regular), Counter Pct (if the category is Regular), Declining Balance (if the category is Regular), Fixed $ per pay period, Fixed Pct per pay period, Fixed $ Declining Balance (if the category is Garnishment), Fixed Pct per pay period (if the category is Garnishment) and User Defined Formula (if the category is Garnishment or Child Support). Your selection in this field may cause additional fields to appear on the window. This is a REQUIRED field.

Why would I want to use a user-defined formula?

5. In the Frequency field, use to select how often this code type should be deducted. This field is REQUIRED.

6. In the Default Priority field, enter a number that represents the priority for this deduction (the lower the number, the higher the priority). For example, priority 01 deductions are taken out of a paycheck before priority 02 deductions. If your Category is Employer, this field is inactive (since Employer Deductions are always set at the lowest priority). NOTE: Numbers 1-9 should be entered as 01-09.

7. The fields in the Category Specific Information sections are active/inactive based on your selection in the Category field. For example, if the Category is Child Support, then the Child Support fields (Child Support Single Rate and Child Support Married Rate) will be active.

8. Child Support Single Rate: Enter the maximum garnishment percentage rate allowed to be taken for single status child support. This field is only active if the Category is Child Support.

9. Child Support Married Rate: Enter the maximum garnishment percentage rate allowed to be taken for married status child support. This field is only active if the Category is Child Support.

10. Garnishment Minimum Wage Multiplier: Enter the Garnishment Wage Multiplier, if applicable. This field is only active if the Category is Garnishment.

11. Sec 125 Dependent Care Indicator: Check this box if this deduction is separated out and listed on the W2 in box 10 (Dependent Care Withholding). Clicking in the box toggles it between checked and unchecked. This field is only active if the Category is 125 Cash or 125 No Cash.

12. Sec 125 Medical Deduction Indicator: Check this box if this deduction should reduce taxable gross. This field is only active if the Category is 125 Cash or 125 No Cash.

13. Sec 125 Health Savings Account Indicator: Check this box if this deduction should reduce taxable gross and be separated out and listed on the W2 in box 12. This field is only active if the Category is 125 Cash or 125 No Cash.

14. Sec 125 Flexible Spending Account Indicator: Check this box if this deduction should reduce taxable gross. This field is only active if the Category is 125 Cash or 125 No Cash. If it is selected, all other indicator flags will be grayed out except for Aggregate Cost of Health Care Indicator.

15. Group Term Life Insurance Indicator: Check this box if this deduction should be separated out and listed on the W2 in box 12. This field is only active if the Category is 125 No Cash or Regular.

16. Roth 401k Indicator: Check this box if the deduction should be separated out and listed on the W2 in box 12. This field is only active if the Category is Regular.

17. Aggregate Cost of Health Care Indicator: If this box is checked, all employee and employer deduction amounts associated with the deduction code will be summarized for reporting on the employee W2.

8. If the Type field is Bracketed Fixed $ or Bracketed Pct, a Bracketed Information area displays below the fields listed above. Fill out the following fields to set up your bracketed deduction:

9. From/To Type: Use to select the type of information you will be entering. Options are Annual Gross, Annual Net, Gross Amount (per frequency), Hours (per frequency), and Net Amount (per frequency). For example, if you select Annual Gross, then the information in the rest of the fields should reflect annual gross amount totals.

10. From: Enter the lower limit of the bracketed range. If no amount is specified, zero is assumed.

11. To: Enter the upper limit of the bracketed range. If no amount is specified, zero is assumed.

12. Ded Amount: Enter the deduction amount (if Bracketed Fixed $) or percentage amount (if Bracketed Pct) for the range in the From and To fields.

13. Max Deduction: Enter the maximum amount to deduct per frequency. This must be a dollar amount and is only used if the deduction is a percentage.

14. Min Net: Enter the minimum net amount that must be available before the deduction will be taken.

NOTE: If a deduction is ever taken from an employee's payroll check that then turns out to be more than the allowable maximum, the system will refund the money to the employee as a negative deduction the next time they are paid.

9. If the Type field is User Defined Formula (available only if the Category is Child Support or Garnishment), a User Defined Formula Grid displays. Fill out the following fields to set up your user defined formula:

Note: The data you need to enter into the User Defined Grid is normally provided by the taxing authority requesting the Child Support or Garnishment deduction.

9. Compute: Type the name of the information you are computing for that line. For example, you may be calculating All Disposable Earning on that line. Therefore, you would enter All Disposable Earnings in the Compute column.

10. Operation: When you click this column, a drop list displays from which you select the type of operation you are performing. Options are adding, subtracting, multiplying, dividing, the lesser of, and the greater of.

11. Variable: When you click this column, a large drop list displays from which you select the variable upon which your selection in the Operation column must act. Options included All Withholding, Gross Earnings, SDI, and many more. There are two variable fields you can use.

For an explanation of the values in the Variable drop list, click here.

9. Constant: If needed, enter a number that acts as a constant upon which your selection in the Operation column must act or a line number to which it must refer. For example, if you wanted the formula to multiply line 1 by some amount, you would enter Line in the Variable column and 1 in the Constant column. There are two constant fields you can use.

For some examples of User Defined Formulas, click here.

10. The Employer Portion frame offers the option of selecting a Type of contribution that an employer will make to an employee deduction. Based on which employer contribution type is selected, there will be a Percent or an Amount field to allow entry of the contribution.

For more information about Employer Shared Deductions, click here.

11. When you are satisfied with the information you have entered, click OK to save the new Deduction Code and close the window. Click Apply to save the new Deduction Code, but leave the window open allowing you to add another Deduction Code. Click Cancel to close the window WITHOUT saving the new Deduction Code.

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