Special Deduction Issues

1. Special Deduction Issues Frequently Asked Questions (FAQ’s) for Deductions

2. Question: I need to create a new deduction – HELP!!

3. Payroll Master Menu To access the Deductions, select option #09 – Office Manager.

4. Office Manager Menu Select option #15 – Deduction Codes. To create a new deduction, type “C” at the prompt.

5. Deduction Code: • Once you select to create a new deduction, you’ll be prompted to enter the code. • The code is a three character definition. By default, the installer will use certain codes for typical deductions such as taxes. We reserve codes that begin with zero, 0**, for matching deductions, and codes that begin with 1** for taxes and net. Some other examples might be: • S01 – begin the code with an “S” for a standard, taxable deduction. • C01 – begin the code with a “C” for a cafeteria plan or tax deferred deduction. • G01 – begin the code with a “G” for garnishments. • T01 – begin the code with a “T” for tax sheltered annuities. • What you choose to use for the deduction code is up to you.

6. Deduction Name: Type the descriptive name for this deduction, up to 20 characters. • Type: Type “S” if this deduction is a base dollar amount. Type “%” if this deduction will be a percentage. Type “A” if this deduction is a TSA (tax sheltered annuity). This field refers to the “amount” you will enter on the employee master file, screen #05. • Abbr: Type a 4 character abbreviation for this deduction. • Chk Stub#: If you are using check stub occurrences, type the numerical order you want this deduction to print on the check stub. • Goal/Times: Type a “G” if you will enter a goal for this deduction to reach. Type a “T” if you will enter a number of times taken for this deduction. Leave blank otherwise.

7. Schedule: Enter the schedule this deduction will apply to. Refer to the Deduction Schedule presentation if assistance is needed. • Calculation Priority: Type the numeric priority, 0-9 for this deduction. Refer to the Prioritizing Deductions presentation if assistance is needed.. • Deduct from Check: Type “Y” if this deduction will be withheld from the employees pay. Type “N” if this deduction will NOT be withheld from the employee, for example a matching deduction.. • Add to Net?: If this deduction will be added to the employee’s net pay, type “Y”, otherwise type “N”.

8. These Parameters have a two-part parenthesis. Before the hyphen refers to the “Add” question, and after the hyphen refers the “Deduct” question for each: • Add-Deduct Fica Gross: Before the hyphen, type “Y” to add to the FICA gross. Type “N” otherwise. After they hyphen, type “Y” to deduct from FICA gross. Type “N” otherwise. • Add-Deduct Taxable Gross: Before the hyphen type “Y” to add to Federal Gross. Type “N” otherwise. After the hyphen type “Y” to deduct from Federal Gross. Type “N” otherwise. • Add-Deduct State Gross: Before the hyphen type “Y” to add to State Gross. Type “N” otherwise. After the hyphen type “Y” to deduct from State Gross. Type “N” otherwise. • Add-Deduct Retirement Gross: Before the hyphen type “Y” to add to Retirement Gross. Type “N” otherwise. After the hyphen type “Y” to deduct from Retirement Gross. Type “N” otherwise. • Add-Deduct Unemployment: Before the hyphen type “Y” to add to Unemployment. Type “N” otherwise. After the hyphen type “Y” to deduct from Unemployment. Type “N” otherwise.

9. Deduct Net: If this deduction will be taken at a percentage from the Net Pay, type “%”, otherwise leave blank. • Sort Code: If you want to combine two or more deductions on the deduction register, type the deduction code (to combine with) here, otherwise leave blank. This field is typically not used.

10. Active each Payroll: This parameter should always be answered “Y”. • Link each Payroll: This parameter should always be answered “Y”. • Print on Check Stub: If this deduction should appear on the employee check stub, type “Y” otherwise type “N”. • Print Vend Ck each Payroll: If this deduction will print a vendor check type “Y” otherwise type “N”. This parameter coordinates with the next. • Vendor Number: Type the vendor number this deduction will print to ONLY if previous field is answered “Y”. These vendors are defined in Office Manager, option #16. • Print Bank # on Register: Type “Y” if you will be entering an account number for this deduction on the employee master file, screen #32 otherwise type “N”.

11. Retirement Deduction: If this deduction is for retirement type “Y” otherwise leave blank.. • Work Order Overhead Ded: Type “Y” if this deduction represents an overhead deduction otherwise leave blank. • Exempt Wages Limit: Use this field to set the salary limit after which this deduction will begin to happen. Leave blank otherwise. • Exempt Quarter: Use this field to place the time limit on the amount entered in the `Exempt Wages Limit' field. Type 1 if you want the amount entered in the `Exempt Wages Limit' field to apply only to the first pay quarter. Type "2" if you want the amount to apply only to the second quarter, etc… Type “A” for all quarters otherwise leave blank.

12. The bottom of the screen consists of an area where you can determine which pay types this deduction will pertain to. Type the pay type code before the hyphen. After the hyphen, type “I” to include this pay type in consideration when calculating this deduction Type “E” to exclude. By default, you MUST have ***-I (as below). This tells the system to Include all pay. You can then set certain pay types to exclude in the remaining fields, if necessary.

13. Payroll Master Menu Once you have created the deduction, you must still set up the General Links, if they apply to your site. To do this, select option #10 – General Ledger, from the Payroll Master menu.

14. General Ledger Link Menu Select option #01 – Define Link Parameters. At the prompt, choose “C” to create a new link.

15. Deduction #: Type the Deduction code you are creating this link for. • Division: Type the GL division for your site. • Account: Type the account number, in part or whole that will determine where this deduction applies. Leave blank as a standard.

16. The Deduction description will appear. Type in the debits and credits as necessary for this deduction. HANDY HINT!! Before you get started, inquire on a similar deductions’ link to see how it’s set up.

17. Question: The Credit Union/Court House is requiring account /court docket numbers with my vendor check.

18. Payroll Master Menu You need to first make sure the deduction is set up to accept an account number. To do this, go to Office Manager, #09.

19. Office Manager Menu From Office Manager, select option #15 – Deduction Codes. At the prompt type “U” to Update and enter the deduction you will track numbers for.

20. Use the <ENTER> key and move over to the parameter “Print Bank # on Register”. Type “Y” and hit <F9> to accept. If this field is already set to “Y” then you simply hit <F9> and back out to the Payroll Master menu.

21. The account number, is entered on the employee master file on screen #32. Once you have pulled up this screen, simply <ENTER> down to the appropriate deduction, and over to the Account # column. Enter the number and hit <F8> to accept.

22. This concludes the Presentation. If you have any additional questions on payroll, contact the LGDPC Customer Service Department. 1-800-439-4504 zdsupport@lgdpc.com Note: You can close this window to return to LGDPC’s How-To Presentations Page.