Defining benefits deductions

Benefits deductions represent contributions to benefits plans, such as life insurance, health, dental, and pension plans, and so on.

Benefits deduction codes are one element in benefits setup. You must also set up benefits plans and enroll employees in the plans. For more information see the Infor Benefits Administration User Guide.

Define benefits deductions

  1. Access Deduction (PR05.1).
  2. Define deduction code and description. Use the following guidelines to enter field values:
    Deduction

    The code that represents the deduction.

    (Description)

    The description of the deduction.

    Payment Description

    The description of this deduction that prints on payments

    Note: If you assign a deduction class to this deduction code, the payment description on the deduction class overrides this payment description.
  3. Select how you want Payroll to calculate the deduction in the Calculation Type field.
    If the deduction is a Select
    Flat amount to be deducted Flat Amount.
    Percent Percent.
    Percent of an employee deduction Percent of Emp Deduction.
  4. Define pay information. Use the following guidelines to enter field values:
    Pay Class

    Determines if you want the application to calculate the deduction on pay associated with a specific pay class.

    Amount or Percent

    Type an amount or percent. The value you select in the Calculation Type field determines if the system considers the value you type an amount or a percent.

    Currency

    Determines the currency you want Payroll to use to calculate the deduction.

    If the company uses one currency, the company currency defaults to this field.

    If the company uses multiple currencies, the process level currency defaults to this field.

    Note: The employee currency and deduction currency must match for you to be able to assign the deduction to the employee.
  5. Select whether this deduction is employee or company paid in the Adjust Pay field.
  6. If you want to include this deduction in a deduction class, select the deduction class in the Deduction Class field.
  7. Define deduction processing options. Use the following guidelines to enter field values:
    Priority

    The number that represents the order in which Payroll takes the deduction within the category of other deductions.

    Arrears

    Select what you want Payroll to do if there is not enough employee pay to cover the deduction.

    Excl From Garnishment (Exclude from Garnishment)

    Determines whether or not you want to subtract the deduction from employee pay before calculating disposable income for garnishment purposes. Disposable income equals gross pay minus taxes and other deductions.

    Note: Do not use this field for tax, company-paid, or add-to-net deductions.
    Note: When calculating earnings and deductions, Payroll verifies the effective date to ensure that the deduction must be taken.
  8. Type the beginning date or the date range that the deduction is in effect in the Effective Date fields.
  9. Type the deduction accrual account in the Accrual Account field.
  10. If you use the Project Accounting application and this is a company paid deduction, define activity options. Use the following guidelines to enter field values:
    Activity

    The activity to which Payroll associates any deduction expenses.

    Account Category

    The activity category to which Payroll associates any deduction expenses.

  11. Define deduction limits. Use the following guidelines to enter field values:
    Monthly Limit

    The maximum amount Payroll can deduct for this deduction in one month.

    Payment Limit

    The maximum amount Payroll can deduct for this deduction in one payment.

  12. If you use the Accounts Payable application, define AP options. Use the following guidelines to enter field values:
    Update Accounts Payable

    Select whether or not to create invoices for payroll-related payables when you close Payroll.

    Create Invoice by Employee

    Select whether or not to create AP invoices by employee. For more information see the Accounts Payable User Guide.

    Vendor

    The vendor you want to use to create Accounts Payable invoices for this deduction.

    Note: Click the Addl Vendors button to define vendors and process level combinations for this deduction.

Related reports and inquiries

To Use
List deductions Deduction Listing (PR205)
List frequency tables Frequency Table Listing (BN204)
Related topics