1. Navigate to Payroll > Configuration > Deductions.
    2. Click the down arrow and select New Pre-tax Deduction or New After-tax Deduction.
    3. Enter a Deduction ID, description, and mark the Flexible Spending Plan checkbox if appropriate.
    4. In the Rate field, select the method to calculate the deduction:
      • Amount to define a total amount, amount per period, or variable amount*.
      • Percentage of gross, Percentage of net, or Percentage of disposable income to define a percentage or variable percentage*.
        Note: The variable information is defined on the Restrictions tab.
    5. Select a Pay stub ID and, if you have Accounts Payable, a Vendor for remittance if appropriate.
    6. If the deduction should be included on W-2s, mark the Include amounts for this deduction in W-2 Box and mark the checkbox.
    7. In the View tax settings for field, select Federal taxes, State taxes, or Local taxes to define the withholding settings.
      • Note: The deduction category, Pre-tax or After-tax, determines the default Withholding Settings.
    8. On the Restrictions tab, select the Start and Stop options.
    9. If you selected Total Amount or Amount per period on the Deduction tab, you can select filters to define the which employees the deduction can be added in the This deduction can only be assigned to employees with these characteristics grid.
    10. If you selected Percentage of gross pay, Percentage of net pay, or Percentage of disposable income on the Deduction tab, you can select the pay types to include in the Include these pay types in [option] grid.
    11. On the GL Distribution tab select:
    12. Combine employee distribution with this account code to enter the account code to use for calculations. When creating calculations, the account code is combined with the employees masked account number to create the distribution.
    13. Always credit this account to use the same account for all calculations.
      • Note: The Combine employee distribution with this account code option paired with the Always use this transaction distribution grid, can cause calculation errors that are difficult to track. Ensure you define all characteristics for fund journal entries that will use this distribution We recommend using the Always credit this account option.

     For additional information, refer to the Configuration Guide for Payroll  (PDF).

    • Mark the Always use this transaction distribution checkbox to enter projects, classes, and transaction codes to use for the default transaction.
    • On the Schedule tab, mark the appropriate deduction schedule option:
    • Save and close the deduction.