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Prioritizing Deductions

Prioritizing Deductions. Payroll Master Menu. To access the Deductions, select option #09 – Office Manager. Deduction Codes. Select option #15 – Deduction Codes, from the Office Manager menu. From here, you can Create, Update, Inquire, or Print a listing of the deductions.

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Prioritizing Deductions

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  1. Prioritizing Deductions

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

  3. Deduction Codes Select option #15 – Deduction Codes, from the Office Manager menu. From here, you can Create, Update, Inquire, or Print a listing of the deductions.

  4. Calculation Priority In some situations, an employee may have more deductions, than current gross pay. In these cases, you can now determine which deductions you want the system to take first, and therefore adjust off those that are “less important”.

  5. Calculation Priority Enter a number 0 – 9 in the priority field for each deduction. The higher the number, the more important the deduction is, and therefore the less likely it will be adjusted off.

  6. Calculation Priority Here is an example of a deduction with lower priority. If the employee does not have enough gross pay on this payroll to cover all deductions, this one will most likely be adjusted off.

  7. System Parameters The second “page” of System Parameters has a parameter that will determine if the lower priority deductions will adjust down or not be taken at all, if the employee’s gross pay does not allow it. “Y” = Adjust the lower priority deductions until net pay equals zero. “N” = Do not adjust at all; causing a negative check. “A” = Do not take deductions that cannot be taken in whole.

  8. The Test Here is an sample of screen 05 of the employee master file, showing the voluntary deductions this employee takes. We will run a test, showing how the system adjusts off the credit union deduction.

  9. The Test In this calculation, the employee has enough pay to cover all deductions.

  10. The Test In this calculation, the employee did NOT have enough pay to cover all deductions, so the system started adjusting those deductions with the lowest priority off, until the check net is zero. Notice that although this employee normally has $250.00 for Credit Union, in this case the system could only take $227.05

  11. The Test In our next example, we will set the “Adjust Negative Checks” parameter, in System Parameters, to “A”. This setting will tell the system to not take that deduction at all if it cannot be taken in whole, therefore giving the employee a check, versus a zero net.

  12. The Test Now, instead of adjusting down the deductions, and causing a zero check, the credit union wasn’t taken at all, and instead gave the employee a net pay of $227.05

  13. 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.

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