This program allows the user of the FACTS system to define others taxes and other deductions withheld from payroll checks.
The system requires the entry of the following four tax codes: FICA, FEDL (federal), STAT (state) and LOCL (local). Two additional miscellaneous taxes may also be set up to fit the needs of the user.
Any voluntary deductions to be withheld from payroll must be defined. Examples include insurance, employee loans, credit union, etc. A feature of the payroll system allows the tracking of employee advances and other deductions with a running balance.
FICA must be set up here.
Advanced Earned Income Credit (EIC): You can no longer add deduction code “FIEI”. A message alerts the user that Advanced EIC was discontinued after 2010.
CAUTION! Deleting a deductions code that is used in the Code Sequence F/M program may endanger the integrity of the payroll data files.
For more information how to use maintenances, refer to the following topics:
How to use file maintenance programs
1. Deduction Code
Enter the deduction code (up to 4 characters). F2 allows a search.
2. Description
Enter the description of this code (up to 15 characters).
3. Deduction Type
Enter whether the deduction is a T-tax or O-other type of deduction. Enter (CR) initially defaults to T.
4. Tax Type
If O was entered in field #3, this entry is skipped. Enter whether the tax type is X-FICA, F-federal, S-state, L-local, 1-miscellaneous 1 (user-defined) or 2-miscellaneous 2 (user-defined).
5. Work To Balance
If T was entered in field #3, this field is skipped. Enter N or Y to indicate if this deduction should be taken from an employee until it totals the balance entered through the Employee Deduction Balance F/M (i.e., for loans, advances, etc.). Enter (CR) initially defaults to N.
6. Calculate On Gross/Net
If T was entered in field #3, this field is skipped and automatically set to G. Enter whether to use the G-gross or N-net as the basis for the deduction calculation. Enter (CR) initially defaults to G.
7. Employer Matching
Enter N or Y to indicate if the employer matches the deduction; i.e., FICA tax requires the employer to match the deduction. Another example of employer matching is 401K. Enter (CR) initially defaults to N and the remaining fields are skipped.
8. Max Comp Contribution/Yr
Enter the maximum amount (0-999999.99) or percent (0-99.99%) an employer may contribute per year. Enter (CR) initially defaults to 0. If a percent is entered, type the amount, the percent (%) sign and press Enter (CR).
9. Max Empl Contribution/Yr
Enter the maximum amount (0-999999.99) or percent (0-99.99%) an employee may contribute per year. Enter (CR) initially defaults to 0. If a percent is entered, type the amount, the percent (%) sign and press Enter (CR).