Set up a Deduction or Employer Accrual Based On a Specific Pay Item or Department
Some deductions or employer accruals, such as union dues or union benefits, may be tied to specific pay items or even specific departments. You can set up a deduction that will calculate an amount based on the number entered in the Qty field of another pay item or other pay items. For example, union dues may be withheld at the rate of 2.5 cents per hour entered for regular pay.
To set up this type of Deduction:
Select Setup/Payroll Items.
Set up a Deduction item.
Enter the amount of the deduction in the Amount or % field.
Select Item(s) Qty in the Based On field.
Click on the Items button.
Select the desired Item from the drop down list in the Item field.
Select the desired Department from the drop down list in the Department field.
Repeat steps 6 and 7, as necessary.
Click OK to save selections in the Based on Items dialog box.
Enter a limit amount in the Limit or % field.
Select applicable Limit Type from the drop down list.
Check any box(es) in the Deduct Prior To Calculating field for taxes this deduction is exempt from.
Select the appropriate Liability Account from the drop down list.
Select the appropriate Payee in the Payable To field if you are writing the check for this liability.
Select the appropriate box in the W2 Tracking field if this deduction needs to be reported on the W2.
Enter a W2 Code if necessary.
Check the Include in Disposable Net box if this deduction is to be calculated after deductions based on disposable net.
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