Deduction classes
Deduction classes are a convenient way to group deduction codes as one total on reports and to provide a common description on payments and direct deposit receipts.
You define deduction classes and then apply them to the deduction codes you want to group in the deduction classes.
You can assign a deduction class to as many deduction codes as needed, but a deduction code can only be assigned to one deduction class.
Example
The Two Rivers Company groups deduction codes into the following deduction classes.
| Deduction Class | Deduction Codes | Payment Description |
|---|---|---|
| DC - Defined Contribution | 401E, 401C | DC |
| FCA - FICA Deductions | MEDE, MEDC, SS-E, SS-C | FICA |
When Two Rivers creates payments and direct deposit receipts for its employees, the payment description prints along with the total of all the deductions the employee has in that deduction class.
Two Rivers can also use the deduction classes when they run deduction listings and reports. Instead of selecting each deduction code for the listing or report, they can select the deduction class. As a result, listings or reports include all the deduction codes assigned to the deduction class.