Use this screen to establish company-wide deductions and/or contributions as mandated by your organization. Set up and use deduction codes for deducting amounts from employees' paychecks, and/or for accruing employer contributions for employees. An employee can have an unlimited number of deduction codes on any one paycheck (however, only 18 will print on the pre-printed check stock), and an unlimited number of deduction codes in any year. There is no limit on the number of deduction codes that can be in use at any one time. The taxability for deductions should at least be set up at the federal level to ensure proper calculations.
Additionally, if you are using the Union applications, you can use this screen to set up union deduction information that will be retrieved as the default values when you set up the Union Profile screen in Costpoint Labor.
Enter this information as part of your initial setup. These codes will be validated when you set up this information in the Employee Deductions screen in Costpoint Employee.
Enter up to a six-character alphanumeric code to uniquely identify this deduction. This is a required field.
Enter, up to eight characters, a description of the deduction. This description will print on the employee's pay stub to identify the deduction from gross pay. This will be used on most screens and reports to identify the deduction. This is a required field.
Enter up to 30 characters to describe the purpose of the deduction code. This description will be used where a longer description will fit, primarily on reports. This is a required field.
Use this drop-down box to select the deduction type that corresponds to the deduction. The deduction type is used when computing W-2s to determine the appropriate field of the W-2 in which to include the deduction. This is defined each year in accordance with IRS requirements. Valid options are as follows:
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401(k) Deferred Compensation* |
Excess Life Insurance |
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403(b) Deferred Compensation* |
Garnishment of Wages |
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408(k)(6) Deferred Comp.* |
Golden Parachute |
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457 Deferred Compensation* |
Health Care Benefit |
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501(c)(18)(d) Deferred Comp.* |
Life Insurance Benefit |
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Admin. Fee Court Orders |
Medical FSA |
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Arrears |
Misc. Employee Loan |
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Benefit Package |
Miscellaneous |
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Cafeteria Plan |
Non-Qualified Deferred Compen. |
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Child Support Payments |
Non-Taxable Moving Expenses |
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Dental Plan Benefit |
Personal Accident Insurance |
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Dependent Care Benefit |
Qualified Profit Sharing |
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Dependent Care FSA |
Retirement Plan (Non-deferred) |
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Disability Plan Benefit |
State Disability Insurance |
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Employee Advance |
Tax Levy |
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Employee Deferred Comp. Loan |
U.S. Savings Bond |
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Employee Stock Ownership Plan |
Union Deduction |
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Employee Stock Purchase Plan |
Union Dues |
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Employer Contribution to a HSA |
Vision Plan Benefit |
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Employer Medical Savings Acct |
409A Deferred Compensation |
* In Costpoint Deferred Compensation Admin, set up deferred compensation plan information in the Plan Setup screen and then link the Deduction code (that has a deferred compensation Deduction Type in this screen) to the deferred compensation plan in the Deduction Code Assignment screen.
Select this checkbox to indicate that the code is to be used to withhold amounts from employees' paychecks. You can use a deduction code as a deduction, contribution, or both.
If you do not select this checkbox, which indicates that you are setting up a code as a contribution only, all fields related to deductions will be disabled. Uncheck this checkbox to clear all values if a deduction code has been established, but is no longer valid. You can also stop a deduction by setting the Through date to the date this deduction becomes invalid.
Select this checkbox to indicate that the code is to be used to accrue contributions as employer expense. You can use a deduction code as a deduction, contribution, or both.
If you do not select this checkbox, indicating a code is being set up as a deduction only, all fields related to contributions will be disabled. Uncheck this checkbox to clear all values if a deduction code has been established, but is no longer valid. You can also stop a contribution by setting the Through date to the date this contribution became invalid.
This group box contains parameters that apply only to deduction codes that are flagged as deductions per the Deduction checkbox.
Select items in this group box to set parameters used in computing the amount of the deduction.
Use this drop-down box to determine how the deduction will be computed. Valid options are:
ADDGRS - Add to Gross. Use this method for deductions such as excess life insurance, relocation, or car allowance, where the deduction amount should be added to gross salary. The amount added to gross is strictly for adding the amount to gross salary in the Earnings Table. This method will add this amount to the Employee Earnings Pay Type table as well as the Employee Earnings Worker's Comp table. You need to associate a Pay Type code and a Worker's Comp code with this deduction method.
This method will create a payroll variance when you post the Payroll Journal for the total of all ADDGRS deductions. After printing checks and posting the Payroll Journal, make a journal entry debiting the payroll variance account and crediting the accrued salaries account. If you have not set up a Payroll Variance Account in the Payroll Settings screen, then no journal entry will be needed, since the Accrued Salaries account will be charged for both sides of the Payroll Journal entry.
In the Pay Type field, you will indicate the pay type to be used for the amount added to gross when this method is chosen.
In the Worker's Comp field, you will indicate the Worker's Comp Code.
FIXAMT - Fixed Amount. Use this method when a particular dollar amount should be deducted each pay period (for example, an employee loan payback).
GHRSPD - Gross Hours Paid. Use this method when the deduction is based on total hours paid for the period.
GRSHRF - Gross Hours. Use this method when the deduction amount is based on total hours worked for the period. The deduction amount will be calculated by adding all hours for the payroll period multiplied by the deduction amount.
GRSHRP - Gross Hours. Use this method when the deduction amount is based on total hours worked for the period. The deduction amount will be calculated by adding all hours for the payroll period multiplied by the deduction percent.
NO DED - No Deduction. This method "turns off" a deduction. Use it when you need to temporarily disable a deduction for all employees using it.
PCTANN - Percent of Annual Salary. This method multiplies the Rate % by the employee's annual salary amount to come up with the deduction amount.
PCTCOD - Percent of Court Order. This method is used for garnishments or tax levies to determine the portion of wages that will be allocated to the courts.
PCTDPI - Percent of Disposable Income. This method is used only when the Deduction Type is "Admin. Fee Court Orders." This method will take the percentage entered to use for administrative fees.
PCTGRS - Percent of Gross Wages. This method multiplies the Rate % by the total wages for the pay period.
PCTREG - Percent of Regular Wages. This method multiplies the Rate % by the total of all non-overtime pay type wages for the pay period.
REGHRF - Regular Hours. Use this method when the deduction amount is based on all hours not designated as overtime hours. The system will calculate the deduction amount by adding all non-overtime hours for the payroll period and multiplying that figure by the deduction amount.
REGHRP - Regular Hours. Use this method when the deduction amount is based on all hours not designated as overtime hours. The system will calculate the deduction amount by adding all non-overtime hours for the payroll period and multiplying that figure by the deduction percent.
When the Deduction Priority checkbox is selected in the Payroll Settings screen, a value between "1" and "99" must be entered. This will establish priority when deductions are taken on a company-wide basis when computing payroll. One represents the highest priority whereas 99 represents the lowest priority. This can be changed on an employee basis in the Employee Deductions screen in Costpoint Employee.
Enter, or use Lookup to select, the three-character pay type code that should be used for the additional amount that is added to gross. This field is available only if the Method is "ADDGRS" (Add to Gross) and is validated when the screen input is saved. This should be a cost-only pay type.
Enter, or use Lookup to select, the six-character workers' compensation code that should be used for the additional amount that is added to gross. This field is available only if the Method is "ADDGRS" (Add to Gross) and is validated when the screen input is saved.
Enter the rate, up to four decimal places, that should be used to compute the deduction. This is a required field if you have chosen any Method other than "FIXAMT" (Fixed Amount), "GRSHRP" (Gross Hours), "NO DED" (No Deduction), or "REGHRF" (Regular Hours). This number is multiplied by the wages to compute the deduction amount.
If you chose the "FIXAMT" (Fixed Amount) Method, enter the amount that should be deducted from each paycheck. If you chose the "GRSHRF" (Gross Hours) or "REGHRF" (Regular Hours) Method, enter the amount that should be multiplied by the hours worked. This is a required field when you select "FIXAMT," "GRSHRF," or "REGHRF."
Enter, or use Lookup to select, a modify code that you have already set up in the Set Up Modify Codes screen. Each modify code contains a grouping of pay types, and information on whether each pay type should be added or subtracted. You would typically set up modify codes for each deduction in which the formula for eligible wages differs.
The purpose of a modify code is to add or subtract amounts, identified by pay type, to or from the basis for a deduction (examples of a deduction basis include "gross pay" and "regular wages"). For example, some companies may include overtime, excess life, and uniform allowance in 401(k) eligible wages, and some companies may not.
This code only applies to the "GRSHRS," "REGHRS," "PCTREG," and "PCTGRS" methods.
If there is a calendar year ceiling on the amount that can be withheld, enter the method that will be used to determine the ceiling amount. The valid values are "P" for an amount that is valid for any payroll year, "O" if it is a one-time ceiling (usually used for garnishments or loan repayments), or leave blank if there is no ceiling amount. For a ceiling method of "O," the Close Payroll Year program will reduce the deduction limit by the year-to-date deduction total and will enter the balance (the "unpaid balance") as the next year's deduction limit in the Employee Deductions table's Limit field. When the deduction limit is reduced to zero, the method is changed to NO DED in the Employee Deductions table in Costpoint Employee.
If there is a calendar year ceiling on the amount that can be withheld, enter that amount in this numeric field. This is typical for 401(k) type deductions, where there is a cap on the amount that is eligible each year.
Leave this field blank to indicate that the deduction should start immediately. If the deduction should not begin until a particular pay period, enter the start date of that pay period.
Leave this field blank to indicate that the deduction will continue indefinitely. If the deduction should stop after a particular pay period, enter that pay period's end date.
Select this checkbox if this deduction is eligible for arrears. This group box will be unavailable if you did not select the Deduction in Arrears checkbox in the Payroll Settings screen and did not select the Deduction checkbox in this screen.
Enter, or use Lookup to select, an arrears deduction code that applies.
This group box contains parameters that apply only to contribution codes that are flagged as contributions per the Contribution checkbox. To establish matching percentages for the selected Computation Method, refer to the Contribution Table when you select the Contrib pushbutton.
Use the fields in this group box to set parameters for computing the amount of the contribution.
Use this drop-down box to determine the method with which the contribution will be computed. Valid options are:
FIXAMT - Fixed Amount. Use this method when a particular dollar amount should be contributed each pay period.
GRSHRF - Gross Hours. Use this method when the contribution amount is based on total hours worked for the period. The contribution amount will be calculated by adding all hours for the payroll period multiplied by the contribution amount.
GRSHRP - Gross Hours. Use this method when the contribution amount is based on total hours worked for the period. The contribution amount will be calculated by adding all hours for the payroll period multiplied by the contribution percent.
NO DED - No Deduction. This method "turns off" a contribution. Use it when you need to temporarily disable a contribution for all employees using it.
PCTANN - Percent of Annual Salary. This method multiplies the Rate % by the employee's annual salary amount to come up with the contribution amount.
PCTDED - Percent of Deduction. This method multiplies the Rate % by the amount of the deduction to derive the contribution amount.
PCTGRS - Percent of Gross Wages. This method multiplies the Rate % by the total wages for the pay period.
PCTREG - Percent of Regular Wages. This method multiplies the Rate % by the total of all non-overtime pay type wages for the pay period.
REGHRF - Regular Hours. Use this method when the contribution amount is based on all hours not designated as overtime hours. The contribution amount will be calculated by adding all non-overtime hours for the payroll period and multiplying that figure by the contribution amount.
REGHRP - Regular Hours. Use this method when the contribution amount is based on all hours not designated as overtime hours. The contribution amount will be calculated by adding all non-overtime hours for the payroll period and multiplying that figure by the contribution percent.
Enter the rate, up to four decimal places, that should be used to compute the contribution. The system multiplies this number by the wages to compute the contribution amount. This is a required field if you have chosen any method other than "FIXAMT" (Fixed Amount) or "NO DED" (No Deduction).
If you have set up a "PCTDED" (Percent of Deduction) method with a Contribution Rate Schedule, you must set this field to "0.0000."
Enter the amount that should be contributed for each paycheck. This is a required field when you select the "FIXAMT" (Fixed Amount) method.
Enter, or use Lookup to select, a modify code that you have already set up in the Set Up Modify Codes screen. Each modify code consists of a grouping of pay types, and information as to whether each pay type should be added or subtracted. You would typically set up modify codes for each pension plan for which the formula for eligible wages differs.
The purpose of a modify code is to add or subtract amounts, identified by pay type, to or from the basis for a contribution (examples of a contribution basis include "gross pay" and "regular wages"). For example, some companies may include overtime, excess life, and uniform allowance in 401(k) eligible wages and some companies may not.
This code only applies to "PCTREG," "PCTGRS," "GRSHRF," "GRSHRP," "REGHRF," "REGHRP," and "PCTANN" methods. When any of these methods is selected and a modify code is assigned, the modify code-pay type amount is being withheld in the basis for the contribution amount (where the pay type is set to be subtracted).
If there is a calendar year ceiling on the amount that can be accrued as a contribution, enter that amount. This is typical for 401(k) type contributions, where there is a cap on the amount that is eligible each year.
Leave this field blank to indicate that the contribution should start immediately. If the contribution should not begin until a particular pay period, enter the start date of that pay period.
Leave this field blank to indicate that the contribution should continue indefinitely. If the contribution should stop after a particular pay period, enter that pay period's end date.
If you are using the Ceridian Tax Services (CTS) interface to report tax information and the Deduction is used to track a supplemental tax, enter the four-digit CTS local code that corresponds to the supplemental tax. This field will be enabled only if you are licensed for the CTS Interface.
If you are using the Ceridian Tax Services (CTS) interface to report tax information and the contribution represents the employer’s portion of a local tax, enter the four-digit CTS Local Code that corresponds to the local tax. Assignment of a CTS Local Tax Code will trigger the Create CTS Tax File utility to include the employer tax information in the tax file that is created.
This field will only be enabled if the Contribution checkbox is checked and you are licensed for the CTS interface. The first two characters of the CTS Local Code must be alpha characters and must be equal to a U.S. State. CTS Local Codes are supplied by CTS. If a CTS Local Code has already been assigned to a Costpoint Local Tax code in the Local Taxes screen, it cannot be assigned to a Costpoint Contribution code.
Select the tax type code for the record from this drop-down box. Valid options are: "City Income Tax," "County Income Tax," "School District Income Tax," "Other Income Tax," and "City Income Tax (Residence only)." The system will use the value entered here to report the locality type when creating the CTS tax files. This value is required if a CTS Local Code is specified..
Select this pushbutton to open the Federal Taxability subtask for the current record. You should at least set up the federal Taxability to ensure proper taxation.
Select this pushbutton to open the State Taxability subtask for the current record.
Select this pushbutton to open the Local Taxability subtask for the current record.
Select this pushbutton to open the Contribution Table subtask for the current record.
Select this pushbutton to open the Account/Vendor/Reference Numbers subtask for the current record.
Changes to this screen update the following tables:
Deductions - DED_CD
Deductions Modifier - DED_MOD
Deductions Modified Pay Types - DED_MOD_PAY_TYPE