Overview:
The Master Deductions window allows you to set up global criteria for non-statutory employee deductions. PENTA uses information set up in this window as default information when you assign deductions to individual employees in the Voluntary Deductions window. You must set up deductions before running payroll so PENTA can process them. PENTA does not process one-time deductions unless there are also timecards and/or other pay for the employee.
You will need a unique master deduction for each deduction type that has a different 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 amount, so that the premiums 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 Accounts, amount or percent of the deduction, as well as any deduction limits such as earnings limits related to a 401k contribution
- The Master Deduction also defines 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
Video: