Master Deductions

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 payroll deduction that has a unique calculation base (% of gross, amount per hour worked, amount per pay period, etc.). For deductions such has health insurance premiums, its recommended to set up a separate Master Deduction for each plan type (Single, Spouse, Family, etc.), so that the 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:

• Setting 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 contribution. 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, take the 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

• Will changing the amount field on a master deduction update the amounts on voluntary deductions?
• Setting up 401k match in Penta

Location:

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

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