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SUMMARY
A pre-tax deduction has to be set up in Payroll



DETAILS


In this set up an employee can decide either a percentage or a fixed amount so that you can perform both with a single deduction ID.



RESOLUTION
In this set up an employee can decide either a percentage or a fixed amount so that you can perform both with a single deduction ID.

1. In Deduction Maintenance (02.290.00) enter a deduction with the following values.

Deduction Type = Pension
Base Type = Gross Wages
Calculation Method = Fixed Percentage
Fixed/Pct/Rate = 0.00
Note: If the Lifetime box is unchecked, any amount entered in Max Deduction Amount represents a maximum annual deduction amount. If the check box is selected, any amount entered in Max Deduction Amount represents a maximum deduction amount for the life of this deduction.
On the W2 Control tab, enter the box that you want this deduction to use on the W2 and whether the retirement box should be checked on the W2.


2. In Employee Maintenance (02.250.00), on the Deductions tab, enter the specific percentage in Fixed Amt/Pct/Rate if the employee selects a percentage. Enter a negative annualized amount in Additional Credit Amount if the employee selects a fixed amount. Enter a Max Deduction Amt if desired.

3. In Earnings Type Maintenance (02.270.00) add the deduction to any earnings that it should be withheld from.

4. In Work Location Maintenance (02.280.00) add the deduction to any work locations that are subject to this deduction. Note: If the Subject All Work Locations box was checked in Deduction Maintenance, this step is not required.

5. In Deduction Maintenance (02.290.00), enter the deduction ID of your Federal Income Tax withholding deduction. Click Exemptions. Enter the following values for the exemption.

Marital Status = All Statuses
Type = Exemption
Exemption/Credit ID = Any four digit ID
Description = Enter up to a 30 character description
Base Type = Deduction Amount
Base Deduction ID = The pre-tax deduction ID from step 1
Fixed Pct/Rate/Amt = 100.00

6. Add exemptions to any other deductions that the pre-tax deduction is exempt from using the same steps as in step 5.
 

Keywords: Payroll, deduction,