Overview
This job aid shows CHRS Operations how to set up or update a deduction code.
Background
Campuses are not allowed to create or update deduction codes and must submit a ServiceNow ticket.
When you receive this ticket, after ensuring there is no negative impact on other campuses, you may create or update the Deduction Code.
Setup a Deduction Code
The data that you enter should be based on what is provided in the ServiceNow ticket.
Step 1: Open the Navbar button
Step 2: Navigate to: Menu > Setup HCM > Product Related > Payroll for North America > Deductions > Deduction Table.
Step 3: Click "Add a New Value".
Step 4: Create the deduction code:
- Enter a Plan Type.
- Enter the Deduction Code.
- Click Add.
Step 5: On the Setup tab, enter the deduction information:
- Effective Date
- Description
- Short Description
- Deduction Priority
- Maximum Arrears Payback
- Subset ID
Step 6: Open the Tax Class tab.
Step 7: In the Tax Classifications area, click the Plus (+) button twice to add 3 rows.
Step 8: Enter data for each of the three rows using the following table:
| Row | Deduction Class | Canadian Sales Tax |
|---|---|---|
| 1 (In rare cases the deduction code does not require this row.) | After - Tax | None |
| 2 | Before - Tax | None |
| 3 (This row is for employer deduction, not employee deduction) | Nontaxable Benefit | None |
Step 9: Open the Tax Effect tab.
Step 10: Update the fields in the "U.S Only" section as needed. Default is "No Effect."
Step 11: Confirm the "Canadian Only" section has "No Effect."
Step 12: Open the Process tab.
Step 13: Update rows corresponding to the rows that you created on the Tax Class Tab.
- Use the arrows to select the row corresponding to the Deduction Classification that you created on the Tax Class tab.
- Under the Partial Deduction Allowed section, enter:
- Stop Deduction at Termination: Checked
- Maximum Yearly Deduction: Blank.
- Liability Accounts - Non Commitment Accounting: ACCOUNT (Generally for the nontaxable row)
Step 14: Click Save.
Update a Deduction Code
The data that you enter should be based on what is provided in the ServiceNow ticket.
Step 1: Open the Navbar button
Step 2: Navigate to: Menu > Setup HCM > Product Related > Payroll for North America > Deductions > Deduction Table.
Step 3: Search for the deduction code to update.
Step 4: In the Deduction Information area, click the Plus (+) button to add a new Effective Dated row.
Step 5: On the Setup tab, enter the deduction information:
- Effective Date
- Description
- Short Description
- Deduction Priority
- Maximum Arrears Payback
- Subset ID
Step 6: Open the Tax Class tab.
Step 7: In the Tax Classifications area, click the Plus (+) button twice to add 3 rows.
Step 8: Enter data for each of the three rows using the following table.
| Row | Deduction Class | Canadian Sales Tax |
|---|---|---|
| 1 (In rare cases the deduction code does not require this row.) | After - Tax | None |
| 2 | Before - Tax | None |
| 3 (This row is for employer deduction, not employee deduction) | Nontaxable Benefit | None |
Step 9: Open the Tax Effect tab.
Step 10: Update the fields in the "U.S Only" section as needed. Default is "No Effect."
Step 11: Confirm the "Canadian Only" section has "No Effect" for all items.
Step 12: Open the Process tab.
Step 13: Update rows corresponding to the rows that you created on the Tax Class Tab.
- Use the arrows to select the row corresponding to the Deduction Classification that you created on the Tax Class tab.
- Under the Partial Deduction Allowed section, enter:
- Stop Deduction at Termination: Checked
- Maximum Yearly Deduction: Blank.
- Liability Accounts - Non Commitment Accounting: ACCOUNT (Generally for the nontaxable row)
Step 14: Click Save.
End of article
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