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Payroll and Deduction Type Examples

How to Setup a % Deduction | Deduction type deductions | Health/Dental Savings Account | Typical Deductions |

Additional Resources

Typical pay type deductions

  • HOURLY
  • HOLIDAY
  • BONUS
  • COMMISSION
  • OVERTIME or TIME/HALF
  • PROFIT SHARING
  • SALARY
  • SEVERANCE
  • SICK PAY
  • TIME/HALF or OVERTIME
  • VACATION

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Typical deduction type deductions

  • 401K
  • ADDL FEDWH
  • ADDL STATE
  • CAFETERIA
  • CHILD SPT
  • DENTAL INS
  • Garnishments
  • HEALTH PLAN
  • Health and/or Dental Savings Plan
  • LIFE INS
  • PENSION
  • WAGE/GARN

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Setup a % Deduction that varies by employee

*IMPORTANT - there are 3 places where you setup deductions

  1. PU 7 (Deduction types) < This is where you setup the deduction
  2. PU 6 (Employee Deduction types) Screen 2 < This is where the % can be changed per employee
  3. PU 20 (Control File) < This is where you setup as pre-tax
    PU 20 Control File
  • Go to PU
  • Select option PU 7 (Pay/Deduction types)
    PU 7 (Pay Deduction types)
  • Enter your deduction type in an available field. In this example we are using garnishment in field 10
    PU 7 Deduction types
  • Press ENTER when complete
  • To finish

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Setup a Pre-tax Health/Dental Savings Account

*IMPORTANT - there are 3 places where you setup deductions

  1. PU 7 (Deduction types) < This is where you setup the deduction
  2. PU 6 (Employee Deduction types) Screen 2 < This is where the % can be changed per employee
  3. PU 20 (Control File) < This is where you setup as pre-tax
    PU 20 Control File
  • Go to PU
  • Select option PU 7 (Pay/Deduction types)
    PU 7 (Pay Deduction types)
  • Enter your deduction type in an available field. In this example we are using garnishment in field 10
    PU 7 - Health Savings Plan Example
  • Press ENTER when complete
  • Additional steps
    • If this deduction is pre-tax you MUST also update PU 20 (Control File).
      PU 20 is where all Pre-tax codes are entered.
    • You must also setup in PU 6 each individual employees $$$ amount deducted.
      Deductions are calculated on a 1 year division based on pay periods (e.g. weekly/bi-weekly/monthly/quarterly)

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Last modified: November 7, 2011

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