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Setting up deductions

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Ajera automatically sets up these commonly used deductions: 401(k), Section 125, Insurance, and Automobile. You can change them as needed. To report their amounts in boxes 10-20 of Form W-2, you must change that field for the deduction.

Multi-company only. The options that appear in the New Pay window are based on the payroll type selected in Company > Preferences. If you see options other than the ones described in this topic, go to Company > Preferences > Payroll tab and verify that Process Payroll is selected in the Payroll Type field.

For deductions that you set up, you determine if a deduction is reported in boxes 10-20 of Form W-2 as described in the following instructions.

From the Company menu, click Payroll > Deductions.

Place the cursor one row above where you want the new deduction.
Click the New button.
Enter the following information:

For	Do this
Description	Type the name of the deduction. This name appears on lists in Ajera and on paycheck stubs and reports.
Calculation method	Select the calculation method for calculating the deduction.
Rate	If applicable, depending on the calculation method you selected, type the amount or percent that you want to use.
Liability account	Select the liability account for this deduction. The liability account reflects who the employer owes the money to for the employee’s deduction, such as medical and 401(k) contribution. The expense side is the employee’s cost account.
W-2 form boxes 10-20	To report the amounts for this deduction in boxes 10-20 on Form W-2, make a selection. Otherwise, leave the Not Reported option selected. For box 14, 18, or 19, identify the deduction by printing a description for it in the box. Enter this description in Ajera in the W-2 box description field. For more information, see About Form W-2.
W-2 box description	If you selected to report this deduction in box 14, 18, or 19, identify it by printing a description for it in the box. Type the description you want to print, entering up to five characters.
Employee tax exempt	Select the check box for each tax that the employee is exempt from withholding on this deduction.
Employer tax exempt	Select the check box for each tax that the employer is exempt from withholding on this deduction.
Notes	Enter any notes.

Click Save. The deduction appears in a row below the cursor. To move it, click the row and click or . Ajera subtracts deductions from paychecks in the order listed on this window.