Before you can enter employee deduction types you must add an employee or select an existing employee. If you need to add a new employee, open the Employee form and then click the New button at the top of the form. Then refer to the Adding Employees section for help on adding new employees.
The first step is to decide if you want to manually select each Deduction through the Deduction box or if you want to setup specific Groups of Deductions. You can use the Group combo box at the top right corner of the form to select a Deduction Group, which will quickly add several Deduction types to the Deduction box. This is a convenient way of adding multiple Deduction types at one time based on a Deduction group. To setup Deduction Groups see the Adding Deduction Groups section.
The following steps will explain in detail how to add Deduction types in the Employees form under the Deduction tab.
1.First open the Employees form and select the employee you want to add Deduction Types to. You can do this by clicking the Find button or using the record navigation buttons at the bottom of the employees form to move from one employee to another.
2.Then click the Deductions Tab to move to the Deductions page.
3.You can click the Add button at the bottom of the Deduction box and add one or more deduction types.
4.When you click the Add button the Add Deductions Types form will open. This form will list all the Deduction Types that are available to add to the Deduction List box. If you do not see a particular deduction type you want to use, make sure it has already been created in the Deduction Types form. You will not be able to select the same deduction type more than once, so if it is already in the Deduction box it will not appear in the Add Deduction form.
5.In the Add Deduction Types form use your mouse to click on all the deduction types you want to add to the Employee Deductions tab. At the top of the form is a Select All button which will select all of the Deductions, for your convenience. When you have selected all the deduction types you want to add, click the OK button. The Add Deduction form will close and all the deduction types you selected will be added to the Deduction List box on the Employee Deductions tab. You will notice that all the fields are filled in exactly like they were setup in the Deduction Types form.
6.You now have the choice of modifying any of the deduction types that were added to the Deduction List box. You can do this by clicking on the Deduction type you want to edit in the Deduction List box. Then edit the fields in the Deduction Information area and Taxes to be withheld Line Item Detail, which are described below.
7.To remove a deduction type that you added refer to the Deleting Employee Deductions topic.
1.The Deduction ID field is read only and displays the Deduction ID that is highlighted in the Deductions box.
2.In the Description field you can modify the default description for the selected deduction type.
3.The Deduct From field will indicate whether the deduction will be deducted from Gross Pay or Net Pay.
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.Enter the maximum annual amount that can be withheld for a deduction in the Limit field. If there is no limit then enter zero in this field.
7.Enter the Liability Account you want to use by selecting it from the combo box. Normally deductions are setup as liability accounts.
8.The Begin Date is the date the deduction will start to deduct from the employees paycheck.
9.The End Date is the date the deduction will stop deducting from the employees paycheck. Leave this field blank to prevent the deduction from stopping.
10.The Active check box can be used to make a deduction type active or inactive. When the Active check box is deselected, the deduction type will be disabled and you will not be able to use it.
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 tot 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.