Creating deduction codes

Use this procedure to create deduction codes. A deduction code is set up for use on a single benefit plan. You will have a separate deduction code for each benefit plan that details deduction information for that plan.

Note: If you are migrating from Infor HR Management Benefits to Infor HR Talent Benefits:

You must create new deduction codes in Infor HR Talent Benefits. You cannot use the same deduction codes in Infor HR Talent Benefits that were used in Infor HR Management Benefits.
You must create new deduction codes in Infor HR Management Payroll that correspond exactly to the new Infor HR Talent Benefits deduction codes.

Select Benefits > Set Up > Payroll Codes > Deduction Codes.
Click Create.
Define the code:

Deduction Code

Specify a code that represents the deduction. We recommend that this match the code in your payroll application to prevent the requirement of mapping.

Description

Specify a description for the deduction.

Begin Date

Select a begin date for the deduction code.

End Date

Select an end date for the deduction code.

Active

Select this check box to make the deduction code active.

Country

Select the country for the deduction code.

Calculation Type

Select how to calculate this deduction code. Types are Flat Amount, Percent, or Percent of Employee Deduction.

Currency

Select a currency for the deduction code.

Amount or Percent

Specify the amount or percent of the salary to be deducted. The type that you select in the Calculation Type field determines if the value that you type is an amount or a percent. Leave this blank if the benefit plan determines the amount or percent.

Tax Status

Select whether this deduction is to be taken pre tax or after tax.

Adjust Pay

Select whether the deduction is Employee or Employer Paid.

Matched Deduction

Select the deduction code on which the calculation is based if creating a deduction with a Calculation Type of Percent of Employee Deduction.

Linked Deduction

Select the deduction to be used for after tax deductions when the Federal limit is reached for the pre tax deduction.
Click Save.