How to add a 403b deduction code to Payroll, Earn/Deduct Codes
Payroll Deduct Codes are set up in File/Preferences/Payroll/Earn/Deduct Codes. You may use the codes provided, or add your own.
To add your own, click on the new button in the upper left corner of the Earnings/Deduct Codes window. Study existing codes to see exactly how you want to set yours up. Please Note: Set up the Vendor in your Manage Vendor portion of the software before creating this code. Then you may add the Vendor to whom you want the deductions to be paid when payroll is processed.
After you have the code set up in Preferences, and the Vendor set up in Manage Vendors, you may add the code to the employee’s record.
- Go into the Miscellaneous Deductions tab of the Employee record and click Add
- Select the Tax Type- before taxes/after taxes/taxes
- Find the Deduction you just created (or the system deduction)
- The Vendor will display from the entry you created in Preferences; when you run payroll, an AP Individual Transaction Invoice will be created for this vendor for the total amount deducted from each employee who have this Vendor as the Payee. You don’t have to put a Vendor here if you use several different Vendors.
- Select the Expense Account against which this deduction will be charged when the item is paid to the Vendor
- Choose between percentage & flat dollar amount deduction
- PLEASE NOTE: Some churches run into an issue when they select Once Per Month or Twice Per Month. Sometimes, when they create an extra payroll for Bonuses, depending on timing, the bonus may be the check where the deduction happens. When you run the payroll, you may zero this amount out. However, payroll thinks it has been deducted so it may not process that deduction again, depending on the settings. Keep an eye on this.