How to Setup Pre-tax Deduction Exclusions



Description of Issue

Our 403b retirement deduction is pre-tax and is not calculating correctly. It seems some deductions are not being excluded.

Context
  • Munis
  • Deduction and Benefit Master
  • Payroll Exceptions
Resolution
  1. Go to the Payroll Exceptions program. (Human Resources/Payroll>Payroll>Payroll Setup>Deduction and Benefit Master) Click Exceptions in the Menu.
  2. Click Search.
  3. Define Tax Deduction. (Example Federal Income Tax - Deduction 3000).
  4. Select a Processing Code of 2-No Deductions are Exempted Except.  Click Accept. 
  5. If the deduction is pre-tax it should be listed under the Exclusion Ranges. 

If it is not listed in the Exclusion Ranges:

  1. Click Update.
  2. Hit TAB on your keyboard until you reach the bottom and a blank field is available. Enter the deduction in the From and To Range.
  3. Click Accept.


Cause

The deduction was not setup with the correct exceptions. 

Additional Information