Deduction Codes control the way you deduct money from an employee's paycheck. They can be voluntary (e.g., 401K) or involuntary (e.g., levy. Involuntary charges can be assessed by the Staffing Service (e.g., hard hat charge), or mandated by the state (e.g., garnishment). You can also enter codes that indicate an employer contribution to an employee's deduction that are not deducted from the employee's pay.

Deduction Codes entered here can be added to the Employee's record as a standard deduction (taken automatically during the payroll process) or can be entered as a 1-time deduction directly on the timesheet. Standard deductions can be taken out of each paycheck, periodically, up until a certain date or certain total amount, or removed from a single paycheck.

If the deduction is an involuntary deduction (levy, garnishment, or child support) and the standard method of basing the deduction amount on the employee's net pay does not fit your needs (or if the calculation of the deduction amount is complicated and involves multiple steps), you can set up a user-defined involuntary deduction formula. If an employee has multiple garnishments but not enough money on his/her paycheck to cover the required amounts, you can set up a special involuntary deduction handling method to define how StaffSuite will divide up the money that is available on the check.

Keep in mind that entering a code here only makes it available to the Operations and PayBill divisions. It does not actually cause any amount to be deducted from a paycheck. In order for the system to apply the deduction to a paycheck, you must enter the code in either the Employee's record (for standard deductions) or PayBill record (for one-time deductions).

You can take the following actions with deduction codes:

• Quick Deduction Code Look Up

• Add Deduction Codes

• Delete Deduction Codes

• List Involuntary Deduction Handling

You can view the following deduction code information:

• Basic Information

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