Deductions (Payroll Tab)

This screen is optional - If your payroll does not have any voluntary or special deductions (Group Insurance, RRSP, Garnish, etc.), you can skip this screen. Statutory deductions (CPP, EI, and Income Tax) are already included as part of each employees regular payroll calculation.

This screen allows you to add regular, non-statutory deductions to your payroll. Typical non-statutory deductions include dental plan and life insurance premiums, pension contributions, union dues, garnishee orders, etc. The statutory deductions (CPP, EI, and Income Tax) are automatically calculated for each employee, and do not need to be assigned.

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Automatic Deductions and Benefits - In many situations, both the deduction and benefit are related. Therefore when you create a benefit in the Current Payroll - Benefits screen, a corresponding deduction is also created in the Current Payroll - Deductions screen (and vice versa). You have the option of utilizing the benefit only, the deduction only, or both. eNETEmployer will allocate these costs to all the areas/departments in which the employee works.

Further, certain types of deductions are associated with benefit programs such as health plans, life insurance plans, and other benefit plans. These are typically referred to as "benefit deductions". Other deductions that are not generally associated with benefits (union dues, parking fees, savings bonds, etc.), are referred to as "general deductions".

Common Buttons

Visit the Button Descriptions help page to view detailed descriptions of each button that appears on your screen (whether in the Button Bar at the top of the table, or in the table itself). Note: If a button is unavailable (i.e. its text appears in Gray), either the command is not applicable to the current screen, or its function has already been applied (e.g. you clicked the New button for an item that can only be added one time).

The following section of this help page describes the various columns that can appear in the main table on this screen. If you see a column description below that does not appear on your screen, you can add the column to your view by using the Customize option under the Views button (located at the left side of the screen just above the table). Refer to the Customize View help page for more help on this feature.

Alt. Name

Use this cell to enter an alternate name for the deduction that can be useful when used in conjunction with the program's Language feature. The alternate name can be set to a different language so that employees' pay stubs will display their preferred language. Refer to the employee's Status Parameters screen to learn more about individual employee Language settings.

As Deduction

Use this cell to specify whether the deduction will be calculated in the current payroll. This is useful in cases where the program has created a matching deduction item, but you do not wish it to be used in any calculations (matching deductions are created automatically when you create a benefit - see the Automatic Deductions note above). Editing the cell will display a checkbox where you can specify the two available options: Yes (the item is active in the payroll) or No (the item in not active in the payroll).

Audit

This button allows you to view a list of changes that have been made to the current item. Choosing the button opens the Audit History window where item changes are shown in colored text. Note: Audit History is a developing feature and subject to updates as new functionality is added.

Before Tax

Use this cell to specify if the deduction should be processed before withholding taxes are calculated. Editing the cell will display a checkbox where you can specify the two available options: Yes (the deduction will be processed before each employee's taxes are calculated) or No (the deduction will be processed only after each employee's taxes have been calculated). Essentially, if you have a deduction type that should not be taxed prior to the tax calculation (such as registered pension or alimony payments), you would place a check in this box. RRSP deductions would be treated in a similar manner.

Calculate Deduction

Use this cell to specify the method that will be used when the deduction is calculated. Editing the cell displays a menu where you can choose the various calculation methods that may be assigned.

Individually - The deduction amount will be calculated for each individual employee based on the amount defined in the Employee - Employee Deductions & Benefits screen.
By Fixed Amount - The deduction will use a fixed amount calculation. This amount is defined in the Fixed Amount cell.
By Function - The deduction amount will be calculated using the specified function shown in the Calculate Function cell.

Calculate Function

Use this cell to specify the function that will be used when the deduction will be calculated using the function method (i.e. the By Function option is chosen in the Calculate Deduction cell). Editing the cell displays a menu where you can choose from a list of available functions. Note: Items appearing in this list are created using the Current Payroll - Functions screen.

Carry Forward Year End Balance

Use this cell to specify whether the deduction's year-end balance should be carried forward to the subsequent year. Editing the cell will display a checkbox where you can specify the two available options: Yes (the deduction's year-end balance will be carried forward) or No (the deduction's year-end balance will not be carried forward). If this option is set to No, the year-end balances will be set to zero automatically upon the first calculation of the next year.

Class

Use this cell to specify how the deduction should be classified with respect to its taxable status. The option you choose here is for administrative purposes only and will not affect the employee's tax calculation. Editing the cell displays a menu where you can choose from a list of available functions including Standard, Pension or RRSP. Note: This cell is only active if the Before Tax cell (see above) is set Yes.

Enable

Use this cell to specify whether the deduction is active in the current payroll. Editing the cell will display a checkbox where you can specify the two available options: Yes (the item is active in the payroll), or No (the item is not active in the payroll).

Fixed Amount

Use this cell to specify the amount that will be used when the deduction is to be calculated as a fixed amount (i.e. the By Fixed Amount option is chosen in the Calculate Benefits cell).

Name

Use this cell to enter the name of the deduction. The name shown here will appear on various reports throughout the program.

Reg. Number

Use this cell to enter the registration number for plan that is associated with the deduction. For example, a registered pension plan (RPP) will have a seven-digit registration number issued by the CRA.

Short Alt Name

Use this cell to enter the short version for the alternate earning name (shown in the Alt. Name column). The short name will be used when space restrictions are limited for displaying or printing.

Short Name

Use this cell to enter an abbreviated name for the deduction. This short name will be used when space restrictions are limited for screen display or printing (e.g. the employee pay stub).

T4 Box

Use this cell to specify the T4 or T4A box to which this deduction will be assigned. Editing the cell displays a drop-down menu with the available options that include:

Exclude from T4 - Choose this option to exclude the deduction from the T4 or T4A form.
<Various T4 and T4A Boxes> - Choose the desired option to include the deduction and add it to the T4 or T4A form's corresponding box.

See Also