To create a deduction (Easy Setup Assistant)

Please note that this task requires single-user access. (Single-user file locking)

You can repeat this task as many times as needed.

In the Payroll Categories step of the Payroll Easy Setup Assistant, click the New Deduction button. The Deduction Information window will appear.

Enter a descriptive name for the deduction in the Deduction Name field.

Review the linked payable account that appears; make sure it's the account you want to use for this deduction.

The Linked Payable Account fields in the Deduction Information, Employer Expense Information and Tax Table Information windows allow you to enter the account that tracks the amounts withheld from employee paychecks, as well as the amounts owed by your company for employer expenses.

You can use different accounts in these fields

Choose the type of deduction you plan to make.

Choose User-Entered Amount Per Pay Period if you want to manually enter the dollar amount subtracted for this deduction on employee paychecks.

Choose Equals __ Percent Of if you want a percentage of a particular wage to be subtracted from employee paychecks. If you choose this selection, enter a percentage and select the wage on which the percentage will be based. You can choose any of the wages you worked with in the previous step in the Easy Setup Assistant, gross wages (if the deduction is to be based on the employees' total pay), federal or state pay.

Choose Equals __ Dollars Per if you want a specific dollar amount to be subtracted from employee paychecks. If you choose this selection, enter a dollar amount and select a time period -- Pay Period, Month, Year or Hour -- from the list to determine the amount that will be deducted from each paycheck.

Specify a limit for this deduction. This deduction will be subtracted from employees' checks until the limit you specify is reached. Once the amount you specify has been deducted, the deduction won't be taken again until the next payroll year.

Choose No Limit if there's no limit on the amount of money that can be subtracted from an employee's paycheck by this deduction.

Choose Equals __ Percent Of if the limit you want to set for this deduction is a percentage of a wage. If you choose this selection, enter a percentage and select a wage from the list to indicate which wage the percentage will be based on.

Choose the Equals __ Dollars Per selection if the limit you want to set is a specific dollar amount. If you choose this selection, enter a dollar amount and select a time period -- Pay Period, Month or Year -- from the list to determine the maximum amount that can be deducted from each paycheck.

Click the Employee button. The Linked Employees window for the deduction appears. Mark the Select column next to each employee to whom you want to assign the deduction. Click OK when you're finished.

Click the Exempt button to indicate the taxes from which this deduction is exempt. The Deduction Exemptions window for the deduction appears. Mark the Exempt column next to the taxes that should be exempt. Click OK when you're finished.

Click OK. when you're satisfied with the entries you've made.