Deduction Codes - Calculation Tab

Access this tab using Maintain>Payroll>Deduction Codes.

Use this tab to select a calculation method for the Deduction Codes. You can choose from various methods built into the system. When the deduction code is assigned to an employee, the calculation method specified on this tab is used to calculate that employee's deductions.

 

Fixed Percentage of Earnings: Select this method to have an employee accrue deductions based on a percentage of earnings. The system first takes the total earning amount for just those earnings that are tied to the Deduction Code, (as indicated on the Earnings tab). This earning amount is then multiplied by the percentage indicated in the Percentage box, to get a fixed percentage of earnings. Note that when using this calculation method, deductions vary with earnings.

Fixed Hourly Amount: Select this method to have the system base deductions on a fixed rate per hour worked. The system multiplies the earning hours that are tied to the Deduction Code (as indicated on the Earnings tab), by the hourly amount specified in the amount box. Note that when using this calculation method, deductions vary with hours worked.

Fixed Amount: Select this method when a deduction is based on a fixed amount per pay cycle. Enter a fixed deduction amount (in the Amount box) to calculate payroll.

Amount on Timesheet: Select this method to use a fixed amount, entered on the employee's timesheet, for deductions.

Percentage on Timesheet: Select this method to use a fixed percentage, entered on the employee's timesheet, for deductions.

Percentage, Amount: Enter a percentage or amount depending on the calculation method selected. You should enter a percentage for Fixed Percentage of Earnings, or an amount for Fixed Hourly Amount or Fixed Amount.

When entering percentages, do not include a decimal point. For fractional percentages, enter the leading zeroes. For example, enter the following numbers to indicate the following percentages:

0005 = .5%

005, 05, or 5 = 5%

50 = 50%

The system calculates up to four places to the right of the decimal point.

Maximum Per Year: Enter the maximum amount allowed for deductions per calendar year. If there is no limit, enter a large number like 9,999,999,999 to be applied as the maximum. If the box is left at 0, 0 is applied as the maximum per year, and you will not get a benefit amount.

Maximum Percentage: Enter the maximum percentage allowed for a deduction, when Percentage on Timesheet is selected. When entering percentages include a decimal point. The percentage can range from zero to 100 percent. The system calculates up to four places to the right of the decimal point.