About Determining the Method of Calculation for D/L Codes

When you create deduction and liability codes (PR Deductions/Liabilities), you must set a method for calculating the deduction or liability amount (using the Method drop-down).

Available methods include: Amount, Rate per Day, Factored Rate per Hour, Rate of Gross, Rate per Hour, Rate of Net, Rate of Straight Time Equivalent, Rate based on Selected Deduction Code, Variable Factored Rate, and Routine. For a detailed explanation of each method of calculation, click here.

Depending on the selected method, you may have additional tasks to perform. The rest of this topic discusses these additional tasks.

Garnishments

You will typically select Rate of Net from the Method field when setting up a garnishment deduction. In this case, you will enter a garnishment group in the Garn Group field. The system multiplies the rate you specify for this deduction by the employee's net amount, which determines the garnishment amount. For more information on garnishments, see About the PR Garnishment Groups Form. For more information on setting a deduction/liability rate amount, see About Deduction and Liability Rates.

Basing State Withholding on Federal Tax

If you base state withholding on Federal taxes, select Rate of Deductionfrom the Method field. The system multiplies the rate you specify for this deduction by the amount from the referenced deduction code (Federal amount) which determines the state withholding. For more information on setting a deduction/liability rate, see Assigning Rates to Deductions and Liabilities.

Using Payroll Routines

Certain deductions (federal tax and most state/provincial taxes) are too complex to calculate using a standard method. Vista™ by Viewpoint contains specific payroll routines for these calculations. You can initialize these routines in PR Routines. To use an initialized routine, select Routine from the Method field and enter the routine name in the Routine field.

For additional information on how to set up deductions and withholding information, see About Payroll Routines.

Note: When states change withholding information that affects tax routines, Viewpoint Construction Software must update the routines. To expedite change, please contact Viewpoint if your state informs you of any changes. All other rates, limits, and other pieces of calculation information are your responsibility to maintain.

Overriding the Method for Bonus Payments (US users only)

If you want to override the method of calculation for bonus payments, select the Calculate as Rate of Gross on Bonus Seq check box. Then specify the rate for bonus payments in the Bonus Rate field, using a percentage (a value between 0 and 1, such as .28). When you override the method of calculation, it applies to all employees subject to this deduction or liability and is typically used to override federal tax calculations.

Note: Bonus tax calculations for Australia and Canada are calculated using a special routine-based procedure that is initiated during payroll processing. To enable bonus tax calculations for a pay period, you must select the Bonus check box for the appropriate payment sequence in PR Pay Period Control (Payment Sequence tab).