Deduction codes

Deduction codes are used to pass contribution information to HR Payroll.

In Benefits, you can define these categories of deduction codes:

• Employee-paid: Reduces employee pay

• Company-paid: Calculates the amounts that companies must pay for certain deductions

This table lists the types of deduction codes needed for benefits:

Deduction Code	Description
After Tax	The deduction is intended to be taken after taxes have been subtracted from employee pay.
Employer Match	A deduction code for matching contributions to employee-defined contribution plans, such as 401(k) plans in the US. Define separate deduction to match employee pre tax after and after tax deductions.
After Tax Rollover	A deduction code for contributions to a defined-contribution plan after an employee reaches the federal limit for pre-tax contributions. These deductions can be defined for the employee and employer rollover. These deductions are taxable.
Pre-Tax	A deduction code for payroll deductions taken from employee pay before taxes are applied.
Employer	Employer contributions