The following steps will explain in detail how to add a new Deduction Type...
1.First open the Deduction Types form and then click the New button to clear the form so you can enter a new record. The cursor will be flashing at the top of the form in the Deduction ID field.
2.You must assign a unique Deduction ID for each Deduction Type, which can be 15 alphanumeric characters in length. For example: Medical Insurance might be referenced as 'MEDICAL'. When you have finished entering data for each field, press the TAB or ENTER key to move your cursor to the next field.
3.You can then enter a Description for the Deduction. This description will be seen next to the Deduction ID in all the Deduction ID combo boxes throughout the program.
4.The Calculation Type combo box is the method or amount used to determine the amount of the deduction. You must enter a value in this field for each deduction type. There are four choices, which are described below.
Fixed Amount: Allows an actual non-calculated amount to be entered for the Deduction.
Hourly Amount: Allows an amount to be entered for the Deduction that is based on the hours worked.
Hourly Percent: Allows a percentage for the Deduction to be calculated based on the hours worked.
Percent: Allows a percentage for the Deduction to be calculated on the gross paycheck.
5.Based on the Calculation Type selected you will either see a field named Amount or Percent. If the Calculation Type is Fixed Amount then the Amount field will be displayed. Enter the actual amount you want the deduction to be. If the Calculation Type is Percent then enter the percent you want the deduction to be calculated on.
6.The numeric Sort field provides a great way of creating a custom sort order for the deduction types. For each record in this form, enter a unique sort number. When you add a new deduction type you will notice the sort field automatically advances to the next unique number.
7.The Paid By field will indicate whether the Employee or the Company is paying for the Deduction.
8.Enter the Account ID you want to use by selecting it from the combo box. Normally deductions are setup as liability accounts.
9.Enter the maximum annual amount that can be withheld for a deduction in the Limit field. If there is no limit then the enter zero in this field.
This Line Item Detail is used to select the appropriate taxes to be withheld from a Deduction type for the Employee and the Company. The 2 Tab dialog box allows you select and group the Employee Taxes and the Company Taxes separately. Select as many tax types as appropriate for this Deduction. If a tax does not exist in the tax Line Item Detail, then you must first add it to the Deduction Types form.
1.Use your mouse and select the Employee Tax Tab.
2.Enter the Tax ID you want to use by selecting it from the combo box. The combo box will display only the taxes designated as Paid by: Employee. The description field will automatically fill in with the taxes description.
3.When you have completed the Employee Taxes, use your mouse to select the Company Taxes Tab.
4.Enter the Tax ID you wan to use by selecting it from the combo box. The combo box will display only the taxes designated as Paid by: Company. The description field will automatically fill in with the taxes description.