CWU: How do I enter a payroll deduction?
All deductions must first be entered for the employer, then for each employee as necessary.
There is no limit to the number of deductions that can be set up for employer.
- Select Deductions & Benefits from the Employees menu. Choose the Deductions option in the Type section.
- Select the New button at the top right of the window. The top entry fields are activated.
- Name: Enter the title of the benefit (not name of an employee).
- Account: Press F2 to access the postable accounts list from the Chart of Accounts if the bookkeeping function is being used.
- Deduction calculation: You must select Dollars/Cents or Percent. If Based on Hrs Worked is selected, you must also select either Dollars/Cents or Percent. When Based on Hrs Worked is selected, the deduction is calculated by multiplying the number in the Hours Worked field on the Live Payroll (or ATF Payroll) screen times the Amount. If Based on Hrs Worked is not selected, the deduction is calculated by multiplying gross pay by the Amount.
- Amount: If Dollars/Cents is selected, enter any amount and CWU will format the number as dollars and cents. If Percent is selected, enter any decimal value less than 1 up to six decimal places. This amount can be left blank and edited for each employee.
- Ceiling: Enter the maximum deduction that can be taken. When the employee reaches the ceiling amount for the year, CWU discontinues this deduction for that employee.
- W2 Box 12 Code: During W2 processing, this code indicates which letters to enter for the Box 12 code. (Click the Help button for code details)
- Withholding Code: These codes dictate where the data appears on the W-2. (Click the Help button for code details)
- Federal, SS, Medicare, State, Local: A Y means the deduction is subject to the specified type of withholding.
- Match to Benefit Number: Enter the number of a benefit and the deduction amount will match the benefit amount. To use this option, the benefit to be matched first must be set up and saved.
- Click Save after entering each deduction. Employer deductions cannot be deleted once saved.
A maximum of 12 deductions can be assigned to each employee.
- Select Employee Setup from the Employees menu and double-click on the employee for whom the deduction will be applied. Open the Deductions tab to display the list of deductions set up for the employer.
- Double-click on a deduction to assign to this employee. The deduction displays in the edit line. Press F3 to auto-fill the default amount entered when the Employer deduction was set up. Edit Amount, Priority, and Ceiling if necessary. Priority sets the order in which the deductions will be subtracted from gross pay, and may be used in a short week when gross pay will not cover all the deductions. Click OK.
- Repeat Step 2 for each deduction for a particular employee. Click Save when finished. The active deductions for an employee display an X in the first column.
- To delete a deduction from an employee’s list, double-click on it and remove the X from the first column. Click OK and then Save.
Note: To correct a deduction that was entered incorrectly, First, go to Employee > Deductions & Benefits. Select the Deduction to be edited. Make the corrections and click Save. Next, go to Employee Setup and select the employee. Choose the Deduction tab. Double left-click on the Benefit so it moves to the line above the grid. Press the F3 key on the keyboard. Verify that the information is correct as you tab to the OK button. Click OK and then Save.
For a video overview of Employee Payroll in CWU, including deductions and benefits setup, see CWU Employee Payroll.