Defining deduction codes

Deduction codes represent amounts withheld from employee wages for employee paid deductions, such as taxes. Deduction codes also represent company-paid deductions that Payroll calculates for each employee and add-to-net deductions. You can define different types of deduction codes to meet your deduction needs within Payroll.

Defining tax deduction codes	Create a deduction code Payroll uses to deduct taxes from employee pay.
Defining company match deduction codes	Create a deduction code to use for a matching contribution to employee defined contribution plans, such as 401(k) plans in the U.S.
Defining linked after-tax limit deductions	Create a deduction code to use for contributions to a defined-contribution plan after an employee reaches the federal limit for pre-tax contributions. These deductions are taxable.
Defining pre-tax deduction codes	Create a deduction code for deductions that Payroll deducts from employee pay before taxes are applied.
Defining US and CA garnishment deduction codes	Create a deduction code to use for employee garnishments.
Defining workers' compensation deductions	Create a deduction code to use for workers' compensation deductions.
Defining benefits deductions	Create deductions tied to a Benefits plan.
Defining add-to-net deductions	Create a deduction code which will add an amount to employee net pay.
Defining miscellaneous deductions	Create a deduction for any use including union dues, employee loans, or any other type of deduction.