To add a new deduction
Payroll Easy Setup Assistant > Review your payroll categories - Deductions > To add a new deduction

You can repeat this task as many times as needed.

  1. Click the New button. The Deduction Information window will appear.
  2. Enter a descriptive name for the deduction in the Deduction Name field.
  3. Review the linked payable account that appears, to be sure it's the account you want to use for this deduction.

Note: You can use different accounts in these fields
For most businesses, the same account is used in the Linked Payable Account field in the Deduction Information, Employer Expense Information and Tax Table Information windows. If you wish to track withholding amounts separately, you can use different accounts in these fields.
  1. Choose the type of deduction you plan to make.
  • Choose the User-Entered Amount Per Pay Period selection if you want to manually enter the sum subtracted for this deduction on employee paycheques.

  • Choose the Equals __ Percent Of selection if you want a percentage of a particular wage to be subtracted from employee paycheques. If you choose this selection, enter a percentage and select the wage the percentage will be based upon. Choose the Equals __ Pounds Per selection if you want a specific sum to be subtracted from employee paycheques. If you choose this selection, enter a sum and select a time period -- Pay Period, Month, Year or Hour -- from the list to determine the amount that will be deducted from each paycheque.

  1. Specify a deduction limit for this deduction. This deduction will be subtracted from employees' cheques until the limit you specify is reached. Once the amount you specify has been deducted, the deduction won't be taken anymore, until the next payroll year.
  • Choose the No Limit selection if there's no limit on the amount of money that can be subtracted from an employee's paycheque by this deduction.

  • Choose Equals __ Percent Of selection if the limit you want to set for this deduction is a percentage of a wage. If you choose this selection, enter a percentage and select a wage from the list to indicate which wage the percentage will be based on.

  • Choose the Equals __ Pounds Per selection if the limit you want to set is a specific sum. If you choose this selection, enter a sum and select a time period -- Pay Period, Month or Year -- from the list to determine the maximum amount that can be deducted from each paycheque.

  1. If the deduction is exempt from one or more taxes, identify those taxes. Click the Exempt button to open the Deduction Exemptions window. Click the taxes that should not be applied to this deduction. An X will appear next to the taxes you've selected. (To unmark a tax you've marked accidentally, simply click it again.)

    The deduction will be subtracted from your employees' gross pay before the selected taxes are calculated.

    When you're satisfied with your selections, click OK. The Deduction Information window will reappear.

  1. Click OK. when you're satisfied with the entries you've made.