Incomes and Deductions


The Incomes and Deductions display enables creation of employee income and deductions codes for payroll processing. A code represents either an income to be added to the employees gross pay amount or a deduction withheld from an employee paycheck. The net pay amount will be the sum of all incomes minus the deductions defined for the employee.

An income or deduction code type template is defined via the "Define Codes" panel. New codes may be defined as needed. Once the income or deduction code template is defined the details of the actual income or deduction for an employee is specified via the "Incomes" or "Deductions" panel.

Entry tips

Type "?" in a promptable line edit and press TAB to view and/or select a code value. Click on the desired code in the related selection display to select the code value.


Type (or prompt via "?") an employee number. Existing incomes for a selected employee will be displayed. Enter the income details and press Save to save the income for the employee. Click an item displayed in the listview. Select "Change" to modify the income details or "Delete" to remove the income from the employee. Check or un-check relevent checkboxes to lock/unlock the account, rate or project values from being changed during payroll processing.


Type (or prompt via "?") an employee number. Existing deductions for the employee will be dispayed. Enter the deduction details and press Save to save the deduction for the employee. Click an item displayed in the listview. Select "Change" to modify the deduction details or "Delete" to remove the deduction from the employee.

Deductions are processed during a payroll run in order of precedence set by the tax status and the deduction level value. That is, "Before tax" deductions are taken first (in level order), followed by "Tax deductions" and finally "After tax" deductions. The default level value for a deduction is "10".

A deduction can be specified as a flat amount and/or a percentage of either the employees gross or net payment amount. A deduction which specifies that the deduction percent is applied to the net pay amount will display the Calc Net checkbox as checked; if un-checked the percentage will be applied to the gross pay amount. If a deduction percentage must be taken on a net payment amount after another deduction has reduced the net pay amount, set its level higher than the deduction to be taken first (e.g. a deduction with a Level value of 9 is taken before level 10 deductions within its tax status). If both a percent and fixed amount are specified, the fixed amount is added to the calculated percent amount.

If Employer match is checked entry of employer match details for a deduction is enabled.

Tax deductions need only be specified for an employee - i.e. simply select a tax deduction code and click Save. The Level or Project values may be overridden for a tax deduction but all other values on the display are ignored for tax deduction calculations since tax deduction calculations are driven by tax tables, etc.

Define Codes

Income and Deduction code templates are defined via the "Define Codes" panel. Once the code template has been defined it is available for inclusion on an employee's pay check via the "Incomes" or "Deductions" panel.

Select the code type to define an "Income" or "Deduction". Enter a brief description of the code and specify the description to appear on the check or direct deposit remittance. Check Active to enable use of this code type. Check "Imputed" for an Income which is to be added to gross pay but not disbursed (i.e. not included in the net pay).

For Deductions: select a tax status to indicate whether the deduction is a tax deduction or is a non tax deduction taken before or after taxes. When "Before tax" is selected, indicate whether the deduction reduces Federal, FICA and/or Medicare taxable wages. (Check all that apply). Check Match if the deduction is eligible for employer match. Check Calc Net if the deduction percentage should be applied to the net amount instead of the gross pay amount. Click Save to save the code definition.

Tax deduction codes "FEDERAL", "FICA" and "MEDICARE" are required and invoke special payroll processing. Only the description,print description and status values are maintained here for these tax codes. State tax codes are typically named using the format SATAX where SA is replaced by the state abbreviation (e.g. ILTAX or COTAX for Illinois, Colorado). Check with your site manager for supported state tax codes.

The GL account value is not edited, therefore a partial account may be entered. The value entered on the definition template becomes the default Income or Deduction account value when a new income or deduction is being assigned to an employee and may be changed at that time. Note: The account value is not valid for tax deductions.

Click a displayed code. Select Change to retrieve the code for editing or Delete to delete the selected code.

Income details


Deduction details


Define codes details