Use the Deductions screen to define payroll deductions.

To open the Deductions screen, click Employees > Setup > Deductions & Fringes > Deductions in the All Tasks pane.

Payroll deductions are amounts taken (deducted) from an employee’s check. Deductions can be taxable or tax-exempt. Some deductions are optional and elected by the employee, some may be mandated by an employer, while others may be mandated by a union. Deductions are not company-specific. This function is used by payroll staff. There are a number of ways to apply the deduction after you have defined it.

For example, you can:

• Apply it to an employee's paycheck during payroll processing on theAdjust Payroll Checks and Advices screen.

• Attach it to a Pay Class screen for a trade or union.

• Attach it to an Employee screen record.

• Attach it to Companywide Rates screen.

• Attach it to Compensation Rates screen