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
- Go to the Payroll Exceptions program. (Human Resources/Payroll>Payroll>Payroll Setup>Deduction and Benefit Master) Click Exceptions in the Menu.
- Click Search.
- Define Tax Deduction. (Example Federal Income Tax - Deduction 3000).
- Select a Processing Code of 2-No Deductions are Exempted Except. Click Accept.Â
- If the deduction is pre-tax it should be listed under the Exclusion Ranges.Â
If it is not listed in the Exclusion Ranges:
- Click Update.
- 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.
- Click Accept.
Cause
The deduction was not setup with the correct exceptions.Â
Additional Information