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Set up Compensations and Deductions

 

         

 

 

How do I set up Compensations and Deductions?

Compensations and Deductions are categorized into Types for tax reporting purposes. Each Type can have an unlimited number of Distributions. Distributions contains the account designations used for creating journals when payroll is processed.

 

This Step-by-Step tutorial guides you through setting up a regular wage compensation and a retirement deduction.

 

For a visual tutorial, see the Setup Compensations and Deductions  video.

All video tutorials can be viewed from the Tutorials & Videos page.

 

 

Step-by-Step

 

1. From the Payroll menu, select Modify -> Compensation Information.

 

2. Click the Edit  icon next to the Salary/Hourly(Regular Wages) compensation.

 

3. Click the Add New Distribution link.

 

4. Enter a name for the Distribution.

NOTE: This is the name that prints on the check stub or voucher when payroll is processed.

 

5. Click the Edit  icon next to the Regular Pay type.

 

6. Enter the Regular Pay expense account and then click the Update button.

 

7. As a time-saving feature, the expense account entered in the Regular Pay type is automatically assigned to all the pay types. Normally, only the Social Security and Medicare pay types are assigned to different expense accounts.

 

8. Click the Edit  icon next to the Social Security pay type.

 

9. Enter the Social Security expense account and then click the Update button.

 

10. Click the Edit  icon next to the Medicare pay type.

 

11. Enter the Medicare expense account and then click the Update button.

NOTE: Sometimes both the Social Security and Medicare accounts are the same account (e.g. FICA Expense account).

 

12. Verify that the Distribution Name and Accounts are correct and then click the OK button.

 

13. Repeat this process to add other Regular Wage distributions such as Maintenance, Nursery, and Pastoral. When you have finished adding distributions, review the Compensation Information page and then click the Update button to save your changes.

 

14. In a similar fashion, you can add deductions. From the Payroll menu, Select Modify -> Deduction Information.

 

15. Click the Edit  icon next to the Elective deferral 403 (b) deduction.

 

16. Click the Add New Distribution icon-link.

 

17. Enter a name for the Distribution.

NOTE: This is the name that prints on the check stub or voucher when payroll is processed.

 

18. Enter the Liability account. If there is an employer match for this distribution, enter the Matching Expense Account. Review the Add new Distribution window and then click the OK button.

 

19. Review the Elective deferral 403(b) deduction page and then click the Update button to save your changes.

 

20. Notice that there is now a check mark in the Distributions column for the Elective deferral 403(b) deduction.

 

21. To view only the deductions that have been assigned distributions: Click the Filters bar, select the Only Ones with Distributions radio button, and then click the Search button.

 

22. Notice only the Elective deferral 403(b) compensation is listed.

 

 

Compiled on 6/22/2018 8:21:40 AM