Deductions Code F/M (PRF962)

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. Set up FIEI for earned income credit (if applicable).

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

Use the following fields to create a deductions code record:

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).