Deductions/Employer Cost

Use the Deductions/Employer Costs function to enter and maintain employee deductions and employer costs for the Payroll system.

Deductions

Use the Deductions tab to assign codes to deductions made for your employees' income. To assign codes to federal, state, or local tax withholdings, use the Federal Tax Setup, State Tax Setup, or Local Tax Setup functions respectively.

Note: Deduction codes are saved in employee history; deduction code descriptions, however, are not saved this way. Therefore, you should be descriptive when you set up deduction codes. Examples of descriptive deduction codes are 401 for a 401(k) deduction or MED for a medical plan deduction.

Employer Costs

Use the Employer Costs tab to assign codes to employer costs that your company pays. For example, if your company matches your employees' 401(k) contributions (or a percentage thereof), the cost you incur for this is considered an employer cost. To assign codes to federal, state, or local tax withholdings, use the Federal Tax Setup, State Tax Setup, or Local Tax Setup functions respectively.

Produce a Deductions/Employer Costs List

  1. Select the print preview button () to preview the list.
  2. The preview report screen appears.
  3. Select the print button () in the toolbar to print your list.