Deduction / Add-on Code Maintenance

Use this screen to set up and maintain deduction and add-on codes for use by employees.

A unique code is assigned to each deduction or add-on, which can be applied by employees in Employee Deduction / Add-on. The software recognizes the code and automatically calculates deductions and add-ons based on the details entered here. Individual monthly limits can be set in Employee Recurring Deductions/Add-ons after the code has been set up in this screen.

You can also use this screen to set up matching 401(k) non-cash add-on codes in order to calculate adjusted gross pay amounts for specific add-ons and deductions. This makes it easier to calculate 401(k) matching amounts based on the gross pay amount without worrying about how allowances, fringe benefits, or deductions might affect the gross pay.

  • Add-on and deduction amounts for Federal jobs (which fall under Davis-Bacon laws); state, county, and local jobs (which fall under prevailing wage laws) and private work (including non-job activities) are stored for each code; in turn, this information yields the total employer contribution for each code. Protection is included so that if you accidentally set up a circular calculation (for example, one in which an add-on relies on another add-on to perform the adjusted gross calculation), the software will ignore the adjustment, complete the calculation, and produce a Calculation Error Report during payroll calculation or layoff check calculation. You can then fix the error or continue with this answer.

  • During payroll check calculation, the recurring deduction and add-on codes are sorted so that any codes which are dependent on other codes (for example, gross pay adjustments) are calculated after the dependent codes. Furthermore, if a deduction amount is changed in the Check Adjustment Entry screen, the software will recalculate the deductions that are dependent on the (changed) code and will display the old and new amounts before prompting the user to confirm the changes.

  • The software prevents deletion of a deduction code if that code is still referenced in Union File Maintenance.

  • If the payroll cycle is currently in progress, warning message will display in the header and this screen will be view only. If checks have already been calculated, no changes can be made until the cycle is complete

  • Please refer to the discussion about Prevailing Wage and Davis-Bacon Processing for more information about the Prevailing Wage Adjustment and Health & Welfare calculation methods.