Employer Shared Deductions

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Staffing Services may provide benefits to their employees in addition to payment for services, and these benefits may take the form of insurance premiums, 401K accounts, life insurance, etc. Depending on the arrangement, these benefits may be paid for by the employee alone, the employer, or the costs may be shared. In some cases the staffing service will match some portion of an employee's contribution.

When a deduction code is added into System Administration, an Employer Portion section exists in the Deduction Code Add screen to set up deduction codes that can then be applied to employee deductions excluding garnishments, levies, child support, and employer type deductions. The deduction codes can then be added into an individual employee's record in Employee New Deduction so it will be automatically applied to an employee's paycheck. There are four types of employer contributions:

Fixed Employer Contribution - the employer cost is a fixed portion of the scheduled deduction amount.

Percent of Gross Employer Contribution - the employer cost is equal to a percentage of the employee's gross pay.

Percent of Employee Deductions - the employer cost is a percentage of the scheduled amount of the deduction.

Matching Contributions ( Bracketed) - the employer portion is a bracketed percentage based on the percentage of the employee's gross pay that qualifies for a matching contribution.

 

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