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Overview:

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You will need a unique master deduction for each payroll deduction type that has a different unique calculation base (% of gross, amount per hour worked, amount per pay period, etc.). For deductions such has health insurance premiums, its recommended to setup a separate master deduction for each plan /premium amounttype (Single, Spouse, Family, etc.), so that the premiums premium deduction amounts do not have to be maintained at a employee/voluntary deduction level, rather they can be maintained at the Master Deduction level and default to the voluntary deduction level.

Benefits:

  • Master Deductions define what the calculation base is for the deduction, this cannot be override at the voluntary deduction level
  • Master Deductions provide the ability to default a Vendor Id, Accrual AccountsSetting up master deductions provides PENTA the needed information to automatically calculate all deductions as part of the gross to net process
  • Ability to default a vendor Id, accrual account, amount or percent of the deduction, as well as any deduction limits such as earnings limits related to a 401k contributionThe Master Deduction also defines . When assigning deductions to employees via the Voluntary Deduction window, the defaults will appear where they can be left as is or overridden.
  • Controls how the deduction will be considered for tax purposes, for example, deduction before or after taxes are calculated and indicate if there are any exceptions to that by tax type (FIT, FICA, FUT, SIT, SUT, SDI, SUI, WC, PL)

Roles:

  • Payroll Manager

Additional Content

Location:

  • Payroll > Setup > Deductions, Reimbursements and Other Compensation > Master Deductions

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