Use Add Deduction to add payroll deductions to an employee's pay check. Changes transfer to your payroll system through the Update Agent.
Click administration | Employee Compensation | Payroll Deductions.
Select the employee in which you want to add payroll deductions for from the employee drop-down menu at the top of the screen.
Click Add Deduction. The Earning/Deduction Detail screen displays.
Select the description from the Description: drop-down menu. The Description: drop-down menu provides the payroll deductions set up for your company in your payroll system and does not include deductions associated with benefit plans or direct deposits in Paychex HR Online because these types of deductions require information that can only be entered in the Benefits and Direct Deposit screens.
Select a fixed amount, percent, or rate in the Deduction Amount ($ or %): drop-down menu, then type the amount in the Deduction Amount ($ or %): field. Refer to Payroll Deduction Calculations for additional information.
Notes: |
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Select the frequency from the Frequency: drop-down menu.
Type the next deduction date in the Next Deduction Date: field or click the calendar icon to next to the Next Deduction Date: field to select a date. The deduction withholds the next time the employee is paid or after the date you specify. This must be entered, unless the Frequency: drop-down menu is Every Pay Period.
Check the Always include even when employee is not paid a regular payroll option checkbox when a deduction occurs, even if the employee is not paid in the pay file. When used with the Target Amount: field, the record is deleted from the recurring screen after the target amount is reached.
Example: |
Select this option if an employee who is on a leave of absence still needs benefit premiums paid. |
Type the target amount in the Target Amount: field if the deduction is to continue until a certain total amount is reached (regardless of how long it takes). If there is no limit to the deduction, leave the Target Amount: field blank. Target amounts are useful for loan payments or other deductions that stop after a certain amount is reached.
Type the amount an employee already paid toward the target amount in the Balance: field.
If using the Target Amount: field, select what is to occur to the deduction after the target amount is met by selecting the appropriate option in the What should happen when the Target Amount is met? field.
HRO Option |
Preview Code |
Description |
Stop Deducting |
D |
This stops the deduction, but retains the history. |
Delete Deduction |
N |
This stops the deduction, and deletes the history. |
Reset Balance, increase # Times Met, and keep deducting |
Y |
The balance resets, an increment records in the # Times Target Met: field, and the deduction continues. |
The # Times Target Met: field displays the number of times the target amount is met, then the balance resets to zero. The # Times Target Met: field is useful for tracking the number of times a deduction reaches a certain amount. Type the number of times the target is met in the # Times Target Met: field.
Type the maximum amount that may be withheld from a single pay check in the Maximum Amount Per Pay Period: field.
Type the minimum amount that may be withheld from a single pay check in the Minimum Amount Per Pay Period: field.
Type the maximum amount that can be withheld each year in the Annual Maximum Amount: field. Once the deduction's YTD reaches this maximum, it temporarily stops withholding until the next year begins.
Note: |
Do not enter information in this field for 401(k) contributions because 401(k) deductions have preset limits that are built into Preview. |
If you want to block a deduction from being withheld on certain weeks of the month, select weeks blocked by checking the appropriate Weeks Blocked: checkboxes.
Example: |
If the employee has bi-weekly payroll and the deduction is to be withheld 24 times each year, check the box labeled 5. This prevents the deduction from being withheld on the fifth week (months that have three payrolls). |
Click Save.