Miscellaneous Deductions

This Distribution Entry screen displays if Distribution Code M was selected on the Distribution Master Selection screen.

Miscellaneous Deduction screen

If no processing sequence is used, deductions are taken in the following order:

1. Exempt Deductions: By order of Distribution Number (in Ascending order, lowest to highest).

2. Non-Exempt Deductions: By order of Distribution Number (in Ascending order, lowest to highest).

Completion Date

Enter a new Completion Date, if necessary, or click the icon to select from a calendar. An error message will be generated if the new date conflicts with existing records, and it will be necessary to correct the date entry before proceeding.

Description

Enter a Description for this Deduction.

Liability Account

Enter a current G/L Liability Account Number to be credited during payroll update, or click the prompt arrow to select from a list.

Benefit Deduction Calculation Methods

The fields to the left, beginning with Fixed Amount and ending with ending with Other Rate, are used to calculate the regular deduction for this benefit. The arrears fields to the right are used to calculate an arrears deduction amount that will be used to retire an arrears balance over time. Both of these calculations will be combined to form the total deduction for this benefit per pay period. If an arrears balance exists, and the arrears fields are not used, the entire balance will retired during the current pay period.

Regular Deduction + Arrears Deduction = Total Benefit Deduction

Regular Deduction Calculation

Fixed Amount

Enter the fixed amount of this deductions, if it will remain the same each time it is processed.     

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Percent

This percentage will be applied to either gross pay, or pay after tax and other deductions have been assessed, to determine the amount available to pay both the employee and garnishments.

If you leave this field blank, the Employee is guaranteed nothing and the entire check will be made available to pay taxes, deductions and garnishments.

Percentages can be overridden in the Employee Master. Generally, use Distribution records to set up deductions that may apply, across the board, to many Employees, and then use the individual Employee Masters to override those settings, on a case by case basis, for specific Employees

Enter the Percentage, if the amount of the deduction is based on a Percent of Gross Earnings or Net Earnings.

Payroll | Maintenance 1 | Employee Maintenance | Employee Deductions tab

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Code

If the total deduction will be determined by the above percentage, click the prompt and select one of the following from the drop-down list to indicate the base for the percentage.

Setting this code to one of the “Net” options will be overridden for any Employee whose Master has this field set to Gross.

Example: For an Employee with the following percentage, gross, taxes and deductions, the Calculation Code table shows the amount to which the percentage would be applied.

Calculation Method

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Alternatively, specify an hourly rate

Regular Rate/Overtime Rate/Other Rate

If the total deduction will be determined by the number of hours worked, enter the amount per hour, for regular, overtime and other hours, to be deducted. This value can be overridden or set up in the Employee's Benefit/Deduction record (Employee Master).

Arrears Deduction Calculation

These fields are used to retire an arrears balance over time by calculating an amount to be deducted from each paycheck until the balance has been paid off. This can be a fixed amount, a percentage of the Arrears balance or a percentage of the regular deduction for this benefit. The system will use the greater of these calculations as the Arrears Deduction amount that, when added to the regular deduction, will form the total deduction for this benefit. If the resulting arrears calculation is greater than the Arrears balance, the system will use the remaining balance to retire the arrears account.

If these fields are not used, and an arrears balance exists, the system will use the entire arrears balance as the arrears deduction amount.

The system will compare the results of the following fixed and percent calculations and use the greater of the two as the arrears deduction amount. If this amount is greater than the current arrears balance, the remaining balance will be used as the arrears deduction amount and the arrears account will be retired.

Arrears Deduction Amount

This field is used to enter a standard arrears deduction amount and is a required field if you are using either of these arrears fields to calculate the deduction amount. Even if you are using a Percent Deduction Calculation Method, this entry will be used if it is greater than the percent method’s calculated amount.

Arrears Deduction Percent/Calculation Method

The system will compare the result of the selected Percent Calculation Method to the fixed amount in the above field and use the greater of the two as the Arrears Deduction.

Exempt Withholding Tax Codes

The Benefit Master includes a Taxable option which determines the benefit's exempt status. When a benefit's  Taxable option is selected in the Benefit Master, the exempt status of that benefit will be determined by the selections made in this section. It is not necessary to complete this section if the Taxable option for this benefit has not been selected on its Benefit Master record.

For the following Deductions, select an option from the drop-down list that will determine their exempt status.

When the options Varies by State or Varies by Local are selected, clicking OK will display screens on which to select the States or Locals that are exempt; the State Exempt Selection screen, and the Local Exempt Selection screen.

Railroad Employee Withholding

The following options are used to process railroad employee withholding for Railroad Tier 1, Tier 2 and Unemployment Insurance tax. The Employee Master must first be used to designate that an Employee will be subject to these tax categories.

• RR T1 FICA SS

• RR T1 FICA MC

• RR T2 Pension

• UI

Deduction Codes

Select the applicable Deduction Codes for this record.

Direct Deposit

Select this option to designate this deduction as a Direct Deposit. Only deductions with this option selected will be included in the Direct Deposit file for transmission to the bank.

Cobra Eligible

Select this option to declare this a COBRA participating Benefit/Deduction. If a deduction is declared COBRA eligible, a COBRA letter will be generated for Employees upon termination.

Declining Deduction

Deductions that are coded as Declining will reduce the base amount on which following deductions are calculated.

Select this option to designate this deduction as Declining.

Deduction Group

This field makes it possible to combine similar deductions, adding them together as one item on the pay-stub. The system will use the first deduction record assigned to each group as the description on the pay-stub.

Pay Advance

Select this option to designate this deduction as a Pay Advance deduction. It will be used to reimburse the Employer for Employee pay advances, uniforms, tools, etc. The Employee Number and Deduction Number can be entered in A/P Invoice Entry, A/R Unapplied Cash Receipts and G/L Journal Entry.

Select this option to allow the system to add/update the Payroll Employee Deduction file automatically, by entering the Employee Number and Deduction Number at Accounts Payable invoice entry time. See the documentation for Accounts Payable, Processing, Approve/Enter Invoices for details.

Leaving this option cleared will generate the error message, "Invalid Ded Type".

Arrears Deduction

Select this option to flag the deduction as an Arrears Deduction, thereby making it eligible for the arrears calculation.

Auto Create

Select this option to create the Arrears Deductions automatically even when the employee did not work. For the arrears record to be created

1. • The employee must not have been terminated.

   • The employee must not have worked for at least one pay period

   • The Auto Create Arrears Deds Payroll default (on the Update Screen) must be set to Y. Selecting the Auto Create option, with the Auto Create Arrears Deds default set to N, will generate an error when you click OK.

Accounts Payable

Vendor Number

Enter a valid Vendor Number or click the prompt to select from a list. If the Vendor Master record is in a different Company/Division than the Distribution record, make the Company/Division selections (below) prior to selecting this Vendor Number.

The lookup table available from the Vendor Location prompt also lists the Vendor Number associated with each location, so both the Vendor Number and Vendor Location selections can be made using that prompt.

Vendor Location

A Vendor Location is a remittal address, for Vendor payables, that is set up in the Vendor Master file.

Enter a current Vendor Location, or click the prompt to select from a list. The Vendor Number associated with this selection will auto-fill the Vendor Number field.

If the Vendor Master record is in a different Company/Division than the Distribution record, make the Company/Division selections (below) prior to selecting the Vendor Number and Vendor Location.

Company/Division Number

Accept the Company/Division used at login or, if the Vendor Master record is in a different Company/Division, click the Division Number prompt to make new selections from a list. The Company/Division Numbers are used for Inter-company transactions at the detail level.

The Vendor and Company/Division entries will allow a deduction, or benefit, to automatically build an open Accounts Payable transaction.

The following processing occurs during Payroll Update

1. These transactions will update the Accounts Payable batch file with a batch number of 88888.

2. The Liability Account will be used to post the tax liability during Payroll Update. When the batch entries are updated in Accounts Payable, a debit entry will be posted to this account and a credit entry will be posted to the Accounts Payable control account.

3. All of the transactions will be summarized according to Vendor Number/G/L Account Numbers to create one invoice per Vendor.

Note: The invoices will be created during Payroll Update if the Vendor Number is currently set up and is non-zero. The Vendor Number cannot be added to the Vendor Master during this procedure.

Separate Invoice

Select this option to create separate invoices in payroll at the employee level, and print the garnishment descriptions on check stubs. This could prove useful for Vendors who have employees enrolled in garnishment deductions. For information about creating separate invoices at the employee level, see Separate Invoices for Employees Enrolled in Deductions.

Clear this option to create separate invoices at the employee level.

Reporting Deduction

Enter a user defined code to group deductions for selection on the Deduction File Listing.

Processing Sequence

Deductions are taken first in Deduction Number number order, and then in Processing Sequence order (if processing sequence is established) as shown in the table below. Therefore, direct deposit deductions must be given a high deduction number or a high processing sequence number. If a direct deposit deduction (usually coded as 100% of net) is taken before any other scheduled deductions, the other deductions will not be taken. All Processing Sequence numbers starting with zero are taken first, so 000 is taken before numbers such as 010, 020, 300.

Zero To-Date Amount

Select this option to set YTD and To-Date amounts to zero during the preparation of the year end files for W2s. See Annual Processing for details. This field and the Garnishment field cannot both be selected.

Gross Pay Code

Select this option to indicate a Gross Code of 7, or leave it cleared to indicate blank only. The deduction is calculated using all earned wages and any benefits/deductions/adjustments marked when Include in 401K/GR 7 check box is selected. Deductions setup as hourly or as a fixed amount will not honor the Gross Code 7.

Garnishment

Select this option if this Deduction is a Garnishment. This field and the Zero To-Date Amount field cannot both be selected.

Condition of Employment Deduction

These are deductions imposed by an employer as a condition of employment. An example might be Union dues, if membership in a Union is mandatory.

Select this option if deductions are imposed that constitute conditions of employment.

Health Insurance Deduction

Select this option if deductions are taken for the purpose of Health Insurance.

Other Exempt Withholding Codes

In addition to the statutory exemptions listed above, other exemptions can be specified that would not be subject to the basis upon which a garnishment should be applied.

Other 1/Other 2

Select these options if deductions are imposed that should not be subject to the basis upon which a garnishment should be applied.

	Click to process these entries. New Records: The Check Type Selection screen displays automatically and is used to select the Check Types applicable to this Benefit/Deduction. When finished, click OK to display screens for each of the Exempt Withholding Tax Codes, as described above. Existing Records: Screens will display consecutively for each of the Exempt Withholding Tax Codes that were set to Varies by State or Varies by Local (see, State Exempt Selection screen or the Local Exempt Selection screen). These screens are used to select the States and Locals that should be classified as exempt. When finished, click OK to return to the Distribution Master Selection screen 2.
	Click to return to the Main Menu without saving changes.
	Click to display the Check Type Selection screen, which is used to select the Check Types that apply to this Benefit/Deduction.
	Click to return to the Distribution Master Selection screen 2 without saving changes.