New/Edit Deduction/Add-on Code - Properties - Field Descriptions

Use the table below for reference when completing the fields on this screen.

Fields/Buttons

Descriptions

Deduction/add-on code

Enter the deduction code; up to 10 characters are allowed. There is no limit as to the number of deductions allowed per check cycle.

Note: The letter U cannot be used for new deduction and add-on codes because it is a pay type code.

If you enter a deduction/add-on code that is used by a union and then click the delete icon, the Are You Sure window displays. If you enter Y, the following error message displays: Error - Code still in use for unions: delete not done. Click OK to return to the Deduction / Add-on Code Maintenance screen. This feature prevents a code used in Union File Maintenance from being deleted from the system.

Description

Enter the deduction/add-on code description.

Type

Select the deduction type: Deduction or Add-on.

  • Add-on: If this deduction amount is to be added to the employee's pay.

  • Deduction: If this deduction amount is to be subtracted from the employee's pay.

Allocate across time cards?

Select this checkbox if you want to distribute expense based on the employee's time card lines. This checkbox will be selected by default if a 'by time card' calculation method is currently assigned to the add-on code.

Tip: to calculate by 'Percent of Gross by Time Card', select this checkbox and then choose the 'Percent of Gross' calculation method.

Calculation method

Use the drop-down menu to select the calculation method. For additional information, see the Calculation Method Detail topic.

When the 'Allocate across time cards?' checkbox is selected, only six calculation method options will be available by time card.

For each of these 'by time card' calculation methods, ‘recurring add-ons’ will distribute expense based on employees’ time card lines. In other words, if the time card is a ‘Direct job cost’ line, the add-on will be charged to the same job and phase. Likewise, if the line is assigned to a ‘Direct equipment cost’ or ‘Direct work order cost’ line, the add-on will be charged to the particular equipment code or work order, respectively.

Default rate

Enter the default rate or percent, depending upon the Calculation method field. Entry in this field is optional.

If a rate is specified, entry in the Default rate field will be used during check calculation if the corresponding rate is blank in Employee Recurring Deductions/Add-ons.

Related code

Enter the related deduction/add-on code. This field is available only if the Calculation method field is set to Percent of Related Code.

The related code may be either an add-on or a deduction and may be calculated using any method.

Spectrum prevents the selection of related codes computed using a user-defined formula code that references % of Federal, % of State, % of County, or % of Local during its computation. Related codes with any other user-defined formulas and calculation methods may be selected. Spectrum also verifies that the calculation method of the Related code field is not % of related code.

Formula code

Enter the code for the user-defined formula. This field is available only if the Calculation method field is set to User-Defined Formula.

Frequency

Enter a deduction / add-on frequency code, or choose one from the drop-down menu.

D Daily

W Weekly

B Biweekly

S Semi-monthly

M Monthly

Q Quarterly

A Annually

Frequencies are optional. If used, be sure to enter a code for each frequency with which the deduction will be made. For example, depending on pay schedules, the company health plan deductions may be made biweekly, weekly, and/or semi-monthly; one code must be entered for each pay frequency type. Otherwise, if frequency is left blank, a single code may be used for all employees.

Week numbers

Enter the payroll week number that you would like this deduction or add-on to be taken. For example, enter 135 if you would like this code to be processed on the first, third, and fifth week’s payroll. Remember to enter the proper week number when setting your new pay cycle.

G/L account code

Enter the General Ledger account code to which this deduction/add-on is to be posted. Entry in this field is required. The G/L account code description will display to the right of this field.

This field does not display if the "percent of gross by time card" calculation method is selected.

If the deduction / add-on code is a deduction, then it is a credit (for example, garnish payable). If the deduction / add-on code is an add-on, then it is a debit (for example, mileage expense).

Eligible for "true up" calculation?

Select this checkbox if this deduction or add-on code is eligible for "true-up".

This field is disabled if the "percent of gross by time card" calculation method is selected.

Note: The 'true up' calculations will only be performed for employees receiving a regular check during the pay cycle in which this check box is selected.

This checkbox is provided for deduction and add-on codes computed as a "percent of gross" and a "percent of a related code". When this checkbox is selected, monthly limits (if any) specified in Employee Recurring Deductions/Add-ons will be ignored. Likewise, any 'per cycle limits' specified in Deduction / Add-on Code Maintenance will be disregarded during this cycle for 'true up' codes. Instead, the 'true up limit' specified on the Limits tab of the Deduction / Add-on Code Maintenance screen will be applied, if applicable.

The calculation during a 'true up' Payroll cycle will be as follows for '% of gross':

Year-to-date gross + current check gross = Total gross

Total gross X employee's specified % = Maximum allowable YTD deduction / add-on amount

The maximum allowable amount is compared to the annual limit (if any) in Employee Deduction / Add-on Code Maintenance

The maximum allowable amount is compared to the 'true up' limit (if any) in Deduction / Add-on Code Maintenance

The minimum of the allowable amount and the two limits is determined to be the 'YTD eligible amount'

The 'YTD eligible amount' minus the 'YTD amount taken' = 'true up' amount granted on pay check

The calculation during a 'true up' payroll cycle will be as follows for '% of related code':

Year-to-date taken on related code + related code amount on current check = 'Total related code amount'

'Total related code amount' X employee's specified percentage = Maximum allowable YTD deduction / add-on amount

The maximum allowable amount is compared to the annual limit (if any) if Employee Recurring Deductions/Add-ons

The maximum allowable amount is compared to the 'true up' limit (if any) in Deduction / Add-on Code Maintenance

The minimum of the allowable amount and the two limits is determined to be the 'YTD eligible amount'

The 'YTD eligible amount' minus the 'YTD amount taken' = 'true up' amount granted on pay check

Aatrix electronic tax type

If you are using Aatrix for eFiling tax forms, select the Aatrix electronic tax type code that maps to the Spectrum add-on/deduction code in this field.

Note: Aatrix eFiling is only available to hosted customers.

Clear employee balance at year end?

Select this checkbox if this Payroll deduction should be cleared at year end.

If you have an employee loan or deduction that will span multiple payroll years, leave this box cleared. The remaining balance will carry forward to subsequent years.

Display accumulated balance on paycheck?

This checkbox allows Payroll Managers to flag the add-on and deduction codes that will show the accumulated balance on the check instead of the year-to-date activity total.

  • This setting only displays for add-ons and deductions with balances that are not cleared at year-end.

  • If this checkbox is selected, the accumulated balance will display on the Payroll Check and on Layoff Checks instead of the YTD balance. In addition, the accumulated balance will display on the Employee Kiosk > Employee Statement and on Replacement Checks, when applicable.

Include pay & hours from

Select the Davis-Bacon jobs, Prevailing wage jobs, and Other jobs & non-jobs checkboxes to designate which time card lines to include in the calculation. These checkboxes are not available for use if the calculation method is set to Fixed Amount, Percent of Net, or Percent of Related Code. You can clear these checkboxes as necessary, but you cannot save a code that has all three checkboxes deselected (because this would deselect all time card lines).

Spectrum looks to each time card line to determine whether or not the add-on or deduction code should be taken. The check file will store the total hours and gross pay for Davis-Bacon jobs and prevailing wage jobs.

For each job, these checkboxes work with the Davis-Bacon job and Prevailing Wag job checkboxes in the Job File Maintenance > Properties window. The Other jobs & non-jobs checkbox applies to jobs that have neither the Davis-Bacon job nor the Prevailing Wage Job check boxes selected in Job File Maintenance > Properties.

Gross pay adjustments

This button only displays if the Calculation method field is set to Percent of Gross Amount. Click this button to open the Gross Pay Adjustments Window window to add the appropriate add-ons that should be included with the gross pay only for the calculation.

Gross Pay Adjustments apply to employee recurring deductions and add-ons. Add-ons that are allocated by time card, although set up in the Employee Recurring Deductions/Add-ons screen, are time card add-ons auto-generated by the check calculation and are not included in this calculation.