Defining Deductions for Your Payroll:

For this tutorial, we will create three basic deductions (Group Insurance, RRSP Deduction, and a 30% Wage Garnishment). Once created, the program will use these items in conjunction with their associated functions (you may have created these associated functions if you completed the Functions Tutorial earlier in Step 3G). If you decide to create the deductions shown in this tutorial, you should also review/complete the Benefits Tutorial so that your deductions and related benefits will be linked correctly.


Deduction #1 - Group Insurance:

We will begin by creating a basic deduction for our employees' Group Insurance. The employer will pay one half of the premiums, the employee will pay the remaining portion.

  1. Ensure that you are on the Payroll tab, and then choose the Current Payroll - Deductions menu command.
  2. When the Deductions screen appears, select the New button. This action inserts a blank new deduction row in the table.
  3. We will enter the data as shown below for our sample deduction (substitute your own data as needed). You can leave the remaining cells with the default values for this tutorial.
  4. Save the row information when you are complete.

  5. Name Short Name As Deduction Enable T4 Box Before Tax Class Calculate Deduction Calculate Function Carry Forward
    Year End Bal.
    Group Insurance GRPINS Yes Yes Exclude from T4 Yes Standard By Function Group Insurance No
    Fig. 12: The Group Insurance deduction completed and saved
    Fig. 12: The Group Insurance deduction completed and saved.

Deduction #2 - RRSP Deduction:

We will continue by creating a second deduction for our employees' RRSP Deduction plan. It will be set up similar to the previous deduction you created in Step A, however it will instead be tied to the RRSP Deduction function you created earlier in the Functions section of this lesson.

  1. Choose the New button to insert a second deduction row in the table.
  2. We will enter the data for our sample RRSP deduction as follows (substitute your own data as needed). You can leave the remaining cells with the default values for this tutorial.
  3. Save the row information when you are complete.

  4. Name Short Name As Deduction Enable T4 Box Before Tax Class Calculate Deduction Calculate Function Fixed Amount Carry Forward
    Year End Bal.
    RRSP Deduction RRSP Yes Yes Exclude from T4 Yes Standard By Function RRSP Deduction 0.00 No
    Fig. 13: The RRSP plan's deduction completed and saved
    Fig. 13: The RRSP plan's deduction completed and saved.

Deduction #3 - Wage Garnishment

We will complete this tutorial by creating a third deduction to represent a 30% Garnishment that caps out at $4000 for the year. It will be set up similar to the previous deductions, however it will tied to a 30% Garnishment function (you may have created this function earlier if you completed the Functions Tutorial).

  1. Choose the New button to insert a third deduction row in the table.
  2. We will enter the data for our sample 30% garnishment as follows (substitute your own data as needed). You can leave the remaining cells with the default values for this tutorial.
  3. Save the row information when you are complete.

  4. Name Short Name As Deduction Enable T4 Box Before Tax Class Calculate Deduction Calculate Function Fixed Amount Carry Forward
    Year End Bal.
    30% Garnish 30GARN Yes Yes Exclude from T4 No Standard By Function net percent with max 0.00 No
    Fig. 14: The Garnishment deduction completed and saved
    Fig. 14: The Garnishment deduction completed and saved.

This completes the Deductions tutorial. Close this window and return to the Quick Start Guide.

Remember: If you created the deductions shown in this tutorial (or a custom deduction of your own), you should also review and/or complete the companion Benefits Tutorial so that your deductions and related benefits will be linked correctly (if necessary).