Assigning tax deductions manually to existing employees

Deductions can be assigned for new and existing employees. Use Employee Deduction (PR14.1) to assign a deduction manually or directly to an existing employee, and to maintain all deductions except benefit deductions applying to a specific employee. Use Deduction Speed Entry (PR15.1) to assign deductions for multiple employees.

For Canada employees, you must assign employee tax deductions. Many organizations use required deductions to assign tax deductions to employees, but you can also assign them to one employee at a time. Assigning required tax deductions to existing employees

Before assigning deductions, the deductions must first be defined on Deduction (PR05.1). Setting up deduction structure

Note: Use Deduction Speed Entry (PR15.1) to add one deduction to multiple employee records, or to make changes to deduction parameters for one deduction for multiple employees.

Assign tax deductions manually to existing employees

  1. Access Employee Deduction (PR14.1).
  2. Specify this information:
    Deduction

    Select the deduction you want to assign to the employee.

    Amount – or – Percent

    Type the amount or percent to deduct from this employee's earnings.

    If you leave this field blank, the value in the Amount -or- Percent field in Deduction (PR05.1) defaults.

    Addl or Minimum Amt, Pct

    Use this field to specify the additional amount or percent to consider when the Calculation Type is Flat Amount Plus Percent of Gross Pay or Percent of Disposable W/Min Flat Amount.

    Exclude Amount

    Type the pay period amount that is excluded from the garnishment calculation.

    The amount is valid for calculation type = 7.

    Balance Type

    Select a balance type for the deduction.

    If you select Descending, the amount in the Balance Amount field decreases by the amount or percent in the Amount or Percent field until it reaches zero and Payroll no longer takes the deduction.

    Balance Amount

    If you select a value of Descending or Limit in the Balance Type field, type the balance amount. When Payroll takes the deduction, the balance amount updates according to the balance type selected for the deduction.

    If this deduction is a 403b deduction, you can select Limit in the Balance Type field and enter an amount in this field to override the tax engine limit on 403b deductions.

    Priority

    Type a value of 1–9 (1 being the highest), to determine the priority in which Payroll processes the deduction.

    If you leave this field blank, the priority defined for the selected deduction defaults from Deduction (PR05.1).

    The priority you define for an employee in this form overrides the priority defined for the deduction on PR05.1. Therefore, changes you make to the Priority field on PR05.1 do not affect the priority you define in this form for an individual employee.

    Arrears

    Select whether the deduction is placed in arrears if net pay is insufficient to support the deduction.

    If you do not select a value in this field, the value defined for the Arrears field in Deduction (PR05.1) defaults for the selected deduction.

    Deduction Cycles

    Select a value indicating whether you want Payroll to take the deduction in cycles 1–9 for the selected employee.

    If you do not define deduction cycles for the selected employee and deduction in this form, the deduction cycles defined for the deduction in Deduction (PR05.1) default.

    Begin Date and End Date

    Type the date the employee's deduction begins.

    Type an end date to stop the employee's normal cycle deductions and one-time deductions.

    If you leave this field blank, the begin date defined in Deduction (PR05.1) for the selected deduction defaults.

    Monthly Limit

    Type an amount that is the limit that can be taken in a single month for this deduction.

    If you do not define a monthly limit for the selected employee and deduction, the monthly limit amount defined in Deduction (PR05.1) for the selected deduction defaults.

    Payment Limit

    Type an amount that is the limit that can be taken on a single payment for this deduction.

    If you do not type an amount in this field, the payment limit defined in Deduction (PR05.1) for the selected deduction defaults.

    Tax Formula

    Identifies the formula used in calculating the deduction.

    Arizona Formula

    Select the formula number used in calculating the Arizona withholding deduction

    Arizona Senate Bill 1185 amended the amounts to be withheld from wages and pensions & annuity distributions made after July 1, 2010.

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