When your company runs payroll, you can run into situations where you need to add or subtract funds from an employee's paycheck for reasons other than just their base pay and taxes. Examples include loan reimbursements, income withholding orders, health insurance payments, 401(k)s, or allowances for expenses such as gasoline or hotels.
How to set up a deduction code
Log in to your Fingercheck account as an Administrator.
Click the SETUP tab > Payroll > Deductions.
Click Add.
A list of predefined deductions appears. These templates include many common applications, such as those for reimbursements, 401(k)s, and benefits (medical, dental, etc.).If the type of deduction code you want to create is listed:
Click Add next to the code.
In the pop-up window that appears, complete the fields and click Continue.
Click OK.
Click the X in the top-right corner to close the Add Deduction panel.
The deduction code appears in your list of codes.
If you want to make changes, click the Edit icon (pencil) next to the code, make your changes, and click Save.
Each field for deduction codes is described in the About deduction code fields section below.
If none of the pre-defined templates suit your needs, create your own deduction code:
Click Add Custom to continue on to create a new deduction code.
Complete the fields, which are described in the About deduction code fields section below.
Click Save.
Deduction code fields
Field | Description |
Code | An abbreviated name for the code.
In combination with the Description field, this makes up the full name of the schedule as displayed in other areas of Fingercheck. |
Short Description | A short descriptive name for the code. This field corresponds to certain Quickbooks Online and Gusto configurations. |
Description | A longer, more proper name, usually used in combination with the Code to help identify the deduction when displayed in other areas of Fingercheck. |
W2 Box 14 label | The label for the deduction if the deduction should appear in Box 14 of the W-2 form of any employees paying into this deduction code. Box 14 is for items such as health insurance, union dues, or a clergyperson’s parsonage. |
Tax Type | The general rules to use when calculating the deduction. Options include pre-tax, post-tax, 401(k), Health Savings accounts, and many more. |
Calculation Rule | Select an option to set the logic used when calculating the deduction. Options are:
|
Based On | Select an option to fine-tune what value should be used when calculating the deduction. Options are:
|
Accumulator Base On | The accumulator rule that the deduction code should follow. Before selecting an option for this field, contact Fingercheck Support to confirm your selection.
The drop-down list is fed from SETUP > Payroll > Accumulators. See How to Create Accumulators. |
Disposable Wage Limit | Select an option if the deduction has a limitation on how much of an employee's paycheck can be used. Typically this field is used with income withholding orders such as child support. |
Prorated Lien | Select this checkbox to prorate a lien based on disposable wages. |
Rate | If you selected Percent for the Calculation Rule above, enter the rate to use for all employees to which this deduction is applied. |
Amount | If you selected Flat for the Calculation Rule above, enter the rate to use for all employees to which this deduction is applied. |
Maximum Type | In conjunction with the Maximum Amount field below, select the type of maximum you want to use. Options enable you to set current, month-to-date, quarter-to-date, and year-to-date amounts or hours. Or you can select a percentage of disposable or gross. |
Maximum Amount | In conjunction with the Maximum Type field above, enter a maximum limit of funds that can be taken over a period. The deduction stops processing if the limit is reached within the specified period. |
Process Sequence | Enter a number to set the priority this deduction should have over other deductions when processing. Lower numbers represent a higher priority. For example, 1 is the highest priority and would be processed before other deductions. |
Display Sequence | Enter a number to set the priority this deduction should have over other deductions when displayed on paystubs.
Lower numbers represent a higher priority. For example, 1 is the highest priority and would be displayed before other deductions. |
Frequency | The frequency rule to use for this deduction. The frequency dictates how often the deduction should trigger if it is applied to an employee's file. This field is required.
The drop-down list is fed from SETUP> Payroll > Frequencies. See How to Set Frequencies for Payroll Activities. |
Trigger Other Deduction | If you want to automatically cause another deduction code to be applied when this deduction code is applied, select another deduction code. |
Payee | The Payee profile to use for this deduction. (These are commonly used for child support or collections agencies.) For more information, see How to Add a Payee. |
Block on Additional Check | Select this checkbox to ensure that the deduction is not taken from manual checks or special payroll checks unless entered manually. |
Allow Partial Amounts | Select this checkbox to allow partial amounts if the full amount cannot be deducted. |
Calculate Only | Select this checkbox if the deduction should be used only for calculation purposes, and should not actually deduct or reimburse any monies to the employee. Examples include contributions to 401k or health insurance. |
Force to Negative Amount | Select this checkbox to make all amounts negative (meaning it gives money to the employee instead of taking it away). This is commonly used for reimbursement codes since they are essentially always going to be a "negative deduction." |
Exempt From Workers' Comp | Select this checkbox if amounts deducted should not be considered for Workers Comp calculations. |
Hide Deduction on Paystub | Select this checkbox if amounts deducted should not be visible on the employee's paystub. |
After Calc Custom Expression | Contact Fingercheck if you would like to enter a custom expression. |
How to apply a deduction code
A deduction code can be used manually or automatically.
Manual application
With the manual method, a deduction code is applied to an employee's individual check. This can be done on manual checks or checks automatically created during payroll runs.
Create a manual check (or edit a check in Step 4 of the Payroll process).
On the Check Detail screen, under the Earnings tab, add a line for the Gross Amount the employee should earn on that check (if one is not already there).
Click the Deductions tab and click Add.
In the first field, select the Deduction Code you created from the list.
In the second field, enter the amount to be deducted.
Continue processing the check as usual.
Automatic/scheduled application
An automatic deduction is one that follows a certain "schedule" and is set up on the employee's file.
Log in to your Fingercheck account as an Administrator.
Click the EMPLOYEES tab.
Click the name or employee number of the employee.
Select Payroll > Deductions.
Click Add.
In the Add Employee Deduction window, from the Deduction Type drop-down list, select the deduction code you created.
Enter an Amount or Rate.
If an amount or rate is set up on the deduction code, you can leave these fields empty.Set a Start Date and End Date to tell the system when to start and stop applying the deduction automatically.
For the End Date field, use 12/31/2099 or a similar value if you want to apply the deduction code indefinitely.Set a Goal Amount if the deduction code should stop applying after a particular amount has been collected.
This is useful for loan repayments and some child support configurations.Set a Payee and Payee Reference Code if a check should be prepared for an agency.
This is useful in child support and wage garnishments.Click Save.
On future payroll runs, you will see the deduction applied automatically.
Here is a brief video demonstration: