Payroll Withholding Setup

In Payroll Withholding Setup you establish parameters for your company’s payroll withholdings, including 401(k) and 125/Cafeteria plans.

On the Payroll Withholding Setup form, you establish a set of withholdings. You then associate employees with withholding codes on the Withholdings grid of the Payroll tab, in the Employees hub.

Deltek includes tax tables that include withholding information for federal, FICA, all state taxes and several local taxes. Deltek updates this information regularly, typically mid-year and at year-end. Deltek calculates withholdings according to tax law for these types of withholdings, if you set the method to System on a company-wide basis, as well as for each individual employee. You set the company-wide method for all of these types of withholdings to System in Payroll Withholding Setup, in Settings. For each employee, you set the method to System for each code in the Employees hub.

Deltek also includes withholdings for health plans, retirement plans, charities, and other miscellaneous deductions. Deltek breaks these withholdings into the following categories:

• 401K and 125/Cafeteria Plans — These withholdings differ from other withholdings because contributions to these plans are usually not included in taxable wages. The Payroll application does not apply federal or most state and local taxes to contributions into these plans. The 125/Cafeteria plan is not subject to FICA withholdings.

• All Other Withholdings — All other withholdings are made according to your company's specifications. Deltek gives you the flexibility to create user-defined rules for determining how wages are calculated for any withholding. For any withholding you can determine how the withholding will impact state, FICA, federal, or any other types of withholding calculations.

Deltek gives you the flexibility to create user-defined rules for determining how wages are calculated for any withholding. For any withholding you can determine how the withholding will impact state, FICA, federal, or any other types of withholding calculations.

Important Information about Withholdings

• You can establish an unlimited number of withholdings in Payroll Withholding Setup. Your paychecks, however, can only show detailed information for up to 16 withholdings (additional withholdings are grouped under the category Other).

• The sequence number (the value in the Seq field on the Payroll Withholding Setup form or dialog box) determines the order Deltek uses to calculate taxes when the withholding is added to the Additional Deductions from Wages grid of another withholding. If the calculation of one withholding is dependant on another, it is important that the withholding to be calculated first have a lower sequence number. For example, if 401k needs to be calculated before Federal, 401k should have a lower sequence number than Federal.

• To meet the requirement that both the amount of an employee's traditional pre-tax elective contribution and the amount of the Roth 401(k) contribution be added together to determine when or if the yearly contribution limit is met, Deltek includes a Link to calculate Overall Limit field on the Payroll Withholding Setup dialog box. This field lets you link any two withholding codes for which amounts will be added together when determining if the employee has reached the overall limit.

Multiple Companies

If your firm uses multiple companies, you can use the same withholding code across multiple companies.