15125: Entering Payroll Deductions (DAS)

All deductions must first be entered for the employer and then assigned to the employee (as necessary). A deduction cannot be deleted from the employer’s list if it is setup for one or more employees or has been applied on a paycheck for any employee. Unlimited deductions can be set up for the employer.

Watch the Deductions and Benefits video for a demonstration.

Employer Set Up:

Unlimited deductions can be set up for the employer.

1. Select Benefits & Deductions from the Employees menu. Choose the Deductions tab on the left.
2. Select the New button at the top left of the window. The top entry fields are activated.


• Deduction Name:
  • Enter the name of the deduction (not the name of an employee). This will appear as the name of the deduction on the pay stub.
• Account:
  • Select the drop-down menu to access the postable accounts list from the Chart of Accounts if using the bookkeeping function. 
• Amount:
  • Enter an amount for the deduction.
  • Format the number as dollars and cents if needed.
  • If the deduction is based on a percentage, enter the amount as a decimal value less than 1 with unlimited decimal places.
• Ceiling
  • Enter the maximum yearly deduction.

  ​When the employee reaches the ceiling amount for the year, Drake Accounting^® discontinues this deduction for that employee.​

• State
  • For multi-location employees, select the specific state to which this deduction applies.
  • When choosing a specific state, the deduction will only apply to payroll in that state.
  • Select <ALL> to have the deduction apply to payroll in all states.
• Other Properties
  • You must select Dollars/Cents or Percent in the based on drop list.
  • If Based on Hrs Worked is selected, the deduction calculates 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 calculates by multiplying gross pay by the ​Amount​.
• ​Deduct After Tax
  • If one of the following boxes are selected, the deduction is subject to the specified type of withholding:
    • ​Federal
    • ​Social Security
    • ​​Medicare
    • ​State
    • ​Work Locality
    • Resident Locality 
• ​Exempt From
  • If any of the following boxes are selected, the deduction is exempt from being subject to the specific type of withholding:
    • ​FUTA
    • ​SUTA
    • ​SDI
    • ​Garnish
    • ​401(k)
• ​Apply to
  • ​W-2 Box 10
    • Select this box to apply the deduction to box ten on the W-2.
  • ​W-2 Box 14
    • Select this box to apply the deduction to box 14 on the W-2.
  • ​W-2 Box 12
    • During W-2 processing, this code indicates which letters to enter for the Box 12 code.
  • ​Matching Benefit
    • 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.​
  • Withholding Code
    • These codes dictate where the data appears on the W-2.  It can also impact how data flows to other forms, reports and payroll calculations.
  • Gross Income WH Limit (percent) - This option is used for limiting the deduction from going over a percentage limit when deducting from wages. It can be used for child support, which has a limit of 50-65% of disposable income. For garnishments, it can be 25% or less of disposable income. For any other deduction, it applies to gross wages. For details, see the US DOL.
    • You can choose to Save and Apply to all which will update the amount and/or ceiling setting for each employee who has the deduction assigned to them to the default setting on Employees > Deductions & Benefits > Deductions tab. 
3. Click Save after entering each deduction.
4. Select Reset to reset the benefit back to the original amounts if you have made changes to the screen and want to revert back to the original figures.
5. Select Save And Apply All to update the deduction globally for all the employees. 
6. Click Exit once you are finished with setting up employee benefits.

1. Go to Employees > Employee Setup. 
2. Select the employee to whom the deduction(s) will be assigned, then select the Deductions tab.
   
3. Select the deduction (on the left) and select the right arrow icon to assign to this employee.
   • The deduction displays under the Employee Deduction Name.
   • 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.
4. Once you add all the desired deductions, select Save.

To delete a deduction from the employee's list, select the deduction and select the left arrow icon to put it back in the left column.  Select Save when finished.

At the bottom right, there are checkboxes for Amount and Ceiling. If checked, and you press F3, the deduction amount and/or ceiling will be updated to the default for that deduction under Employees > Deductions & Benefits > Deductions tab.