About Determining the Calculation Basis for Deduction and Liability Codes

You can associate subject earnings or pre-tax deductions with a deduction/liability code using the Basis Codes tab on the PR Deductions/Liabilities form.

  • You will add earnings codes to this tab when the system should include the earnings code's posted amounts in the deduction or liability's subject amount. Earnings codes that you enter on this tab must be valid codes previously set up in PR Earnings Codes.

  • You will add pre-tax deductions to this tab when the system should not include the pre-tax deduction amount in the basis for calculating the deduction or liability. To add a deduction code to this tab:

  • The code must be a pre-tax deduction (you checked the Pre-Tax Deduction box in PR Deductions/Liabilities) and

  • The code you are adding it to must have the Calculation Category drop-down set to F-Federal, S-State, L-Local, E-Employee, or I-Insurance, with the Method drop-down set to G-Rate of Gross, R-Routine, or S-Straight time equivalent.

There are two ways you can add deduction/liability codes. You can add all eligible codes to the basis or you can copy the basis codes from an existing deduction/liability.