Benefit/Deduction Codes

PayrollGuide > Payroll > Setting Up the Payroll Module > Working with Payroll Codes > Benefit/Deduction Codes

You can use the PR Benefit/Deduction Codes window to set up and manage Benefit, Deduction, Addition, Tip, and Garnishment Codes for employees.

For more information about garnishments, visit the Department of Labor website.

Tips & Tricks: Are these Codes Taxable?
Benefit Codes are automatically sheltered from all taxes and other deductions. The other Code types are paid directly to the employee and are taxable by default. If you attach Shelter Codes to Benefit/Deduction Codes, their taxability changes based on the settings of the Shelter Code.

To set up Benefit/Deduction Codes:

1 In Payroll, select Options > Benefits/Deduction Codes from the left navigation pane. The Benefit/Deduction Codes window will open.

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2 Select the type of Code you want to create from the Class drop-down.

3 Enter a unique Code of up to ten characters and a meaningful description for this Code.

4 Enter the required information in the remaining fields of the window.

5 Click Save to save changes to this Code.

After you set up the Code you want to use, you must attach it to individual employee records for use during payroll processing. You can attach Benefit/Deduction Codes to employees in the PR Employee Management window. You can update benefit/deduction amounts for each payroll in the Prepare Payroll window.