Note: The following contains behaviors and features only available in Avionté versions 14.1 and above.
- In the Employee section, search for and select the employee for whom the deductions are being set up.
- Expand the Payroll option in the Employee sub-menu and select the Deduction option.
- Click the New Deduction link in the upper-left portion of the Deduction tab. Notice the fields on the tab clear for entry.
- The Max % of Net indicates the default maximum percentage of an employee’s net income that can be taken out for deductions.
- Click the Deduction Type drop-down and select the deduction from the list.
- For Amount/Percentage, choose one of the following options:
Option Description Fixed Amount Choose this when a fixed dollar amount is deducted from the employee pay, and then enter that amount in the Amount field. Percentage Choose this when a percentage deduction amount is to be applied. When this option is selected, additional options appear to indicate whether the percentage is applied to Gross pay or Net pay. Enter the percentage to apply in the Percent field.
- Check the Flag During Payroll checkbox if the deduction should be flagged during payroll processing. Then when the payroll batch is processed, a warning will appear for this employee, allowing you to verify, and if needed, modify the deduction.
- The Deduction Max % sets the max percentage that will be taken out of the total paycheck by the deduction during processing. This value will override the Max % of Net, and should be set based on the specific order for a deductions. For example, when this field is set to 50%, if the Net Income (NI) on a check is $100, the max amount that can be deducted (Disposable Income) is $50. If the employee has one garnishment for $60 and another for $60 being processed at the same time (on the same sequence) it will take $25 for each. However if the garnishments are for different amounts, in this case $50 and $10. The amounts will then be weighted:
- By added them together to find the total [50+10=60]
- Then each amount will be divided by that total to find what percentage of the total they are. [50/60=.83] and [10/60=.17]
- These will then be multiplied by the disposable income found earlier ($50) to find what dollar amount they will deduct. [.83*$50=$41.5] and [.17*$50=$8.5]
If one garnishment is set for sequence 1 and the other is set for sequence 2, it will take $50 for the first, and $0 for sequence 2.
- By added them together to find the total [50+10=60]
- Use the Sequence field to show the order the deductions are to be taken out of the employee’s paycheck. If there is a deduction with a sequence of 1 and another deduction with a sequence of 2, the system will take the full amount from sequence 1 before considering sequence 2. If all deductions have a sequence of 1, the system will prorate the deductions if needed.
Note: There are some restrictions as to which deductions can be placed into the same sequence. These are displayed in the following table:
Deduction Type Should be Placed with Cannot be placed with Disposable Income Exempt Disposable Income Exempt All-or-Nothing, Non-Disposable Income Exempt Non-Disposable Income Exempt Non-Disposable Income Exempt Disposable Income Exempt, All-or-Nothing All-or-Nothing All-or-Nothing Non-Disposable Income Exempt, Disposable Income Exempt Tiered None All Levy None All
- The Active checkbox (checked by default), when checked, makes the deduction immediately active for the employee once the deduction is saved. If the deduction is made inactive, then the deduction is not included in calculating payroll for the employee.
- The Per Hour checkbox may appear next to the Active checkbox if configured by your administrator.
Note: This will be calculated as [Rate*(Reg hours+OT hours+DT Hours)]
- From the Deduction Pay Cycle drop-down, select the pay cycle for the deduction. The options are hourly, daily, weekly, biweekly, monthly, semi-monthly, or yearly.
- In the Date options, enter dates as follows:
Option Description Additional Information Start Date Enter the date that the deduction is to become effective by entering the date in MM/DD/YYYY format or by clicking the down arrow and selecting the date from the calendar. If a check is back dated into the period between this deductions start and end date this deduction will be applied to the check. End Date Enter the date the deduction is to end. Typically, this would apply in the case where an insurance plan is offered on an annual basis, thus this date would indicate the final day the current policy is effective. If the deduction is open-ended, then leave this field blank.
- In the Select Agency drop-down, select the name directly related to the deduction, such as insurance company or 401K provider.
- In the Reference Number field, enter the number associated to the employee's deduction account.
- In the Limits options, enter amounts as needed:
Option Description Apply Limits
Place a check mark in the box to apply the value limits from the fields below to the employee's deductions.
Enable the Apply Limits option with the PayPeriodLimit Transaction Property.
Pay Period Limit The maximum amount that can be deducted from the employee's pay during the pay period. This may be useful when a percentage value is entered for the deduction, and there is a maximum amount that can be applied. Monthly Limit The maximum amount that can be deducted monthly from the employee's pay. Yearly Limit The maximum amount that can be deducted annually from the employee's pay. Life Time Limit The maximum amount that can be deducted from the employee's pay over their life time.