Deduction codes are used to record how deductions are applied to employee payroll.
To complete the fields for a new deduction code:
1. On the Management Navigation Menu, click Settings > Company CodesSettings > Company Codes.
The Company CodesCompany Codes page displays.
2. Select Deduction Codes from the Code TypeCode Type drop-down box.
A list of all existing deduction codes displays in the CodesCodes table.
Note: You may additionally filter which existing codes are listed by selecting options from the Status Filter and Sort By drop-down boxes. Some codes offer additional filtering options.
3. Click the Add New CodeAdd New Code button.
The Add Company CodesAdd Company Codes page displays.
4. Enter a name for the deduction code (up to 5 characters) in the Code text box (this value must be unique).
5. Select the Active status from the Status drop-down.
Note: Giving a code a status of Inactive will add the code to the system without making it available to managers. The code will not be available until you change it to Active.
6. Enter a detailed description of the deduction code (for reference by managers when they view deduction codes) in the Description text box.
7. Enter a short description (up to 20 characters) in the Short Description text box.
Note: This code appears in the list of miscellaneous deduction types to be posted through Time Clock.
8. Enter a description for the remittance stub of a payroll, check/direct deposit advice, and other reports associated with the deduction code in the Check Stub Description text box.
9. Select the type of deduction (voluntary by employee, contribution to retirement plan, and so on) from the Deduction Type check box.
Note: To defer an amount from eligible earnings, select Deferred Compensation Plan. Then, create a recurring deduction for the employee using this deduction code.
10. Select whether the deduction code can be used for a miscellaneous deduction in the Use in Time Clock drop-down box.
Notes:
If you select Payroll Adj only, only a management user with access rights to Payroll Adjustments can post to the code.
Retirement and Wage Garnishment deduction codes cannot be posted through Miscellaneous Adjustments.
11. If necessary, enter W-2 information related to the deduction code (box and code) in the Form W-2Form W-2 text boxes.
Enter the Form W2 box number (where tax year deductions with this code should be printed) in the Form W-2 Box field (this is an optional field). You may enter box 10, 11, 12, or 14.
Enter the code to precede the amount printed in box 13 or 14 of Form W2 in the Form W-2 Code text box (this is an optional field).
12. If this is to be a recurring deduction code, select Yes, Rate-Based, or Percent-Based from the Use as Recurring Code check box. Otherwise, leave the box set to No.
13. Click the SubmitSubmit button.
The Confirm Code Additions page displays.
14. Enter any notes in the Change Notes text box.
15. Click the ApproveApprove button.
Result: The Company Codes page displays a list of deduction codes, including the deduction code you just created. The deduction code you just created is added to a Pending EAN's table. After ExponentHR reviews and approves the new deduction code, it will appear in the Deduction Codes table.
Note: Click the Cancel button to return to the Company Codes page without creating a new code.