Deductions

Set up benefit plans, add benefit and post-tax deductions for employees and review them on draft or failed pay runs

Company Admins and HR Admins manage company benefit plans on Settings → Payroll → Benefits deductions, a page headed Benefit deductions. The same roles manage each employee’s deductions on their People profile.

Benefit deductions opens after your company finishes payroll setup. Each employee sees their own paystubs on My profile → Docs (see Paystubs and tax forms).

Every turns on employee benefit deductions and post-tax deductions company by company. If you don’t see them, email [e-mail] to ask about them.

Set up a company benefit plan

The list shows only current plans: active plans ending after today.

1. Start a plan

   On Benefit deductions, select Add new.

2. Choose the plan type

   In Benefit plan type, choose the type of benefit.

3. Choose the vendor

   For a 401(k) plan or a Roth 401(k), in Select benefit vendor, choose the vendor. Other plan types don’t ask for one.

4. Name the plan

   Enter a Benefit plan name.

5. Set the dates

   Choose the plan’s Start Date and End Date.

6. Choose the amount period

   If the form shows Benefit Period, choose Month or Pay Period. This sets the unit for each employee’s amounts.

7. Choose whether the company matches

   For a 401(k) or Roth 401(k), in Contribution Match, select Yes or No.

8. Set the company match

   If you selected Yes, enter Company match and Percentage of the employee salary.

9. Set a company limit

   Optional: enter an Annual company contribution limit.

10. Save the plan

    Select Save. The plan appears in the list if it’s current.

Select a current plan to change its name, dates or contribution settings. The plan type stays fixed. To ask about changing a saved 401(k) plan’s vendor, email [e-mail].

Each 401(k) and Roth 401(k) type can have one current plan. Edit the existing current plan to change it.

Add a benefit deduction for an employee

Benefit plan offers active plans ending after today that have no benefit vendor or partner. A 401(k) or Roth 401(k) plan created in Benefit deductions requires a vendor, so Benefit plan doesn’t offer it. To ask how to add an employee to one of these plans, email [e-mail]. For 401(k) partners, see Retirement.

Contractors have no Benefits tab. If the employee’s self-service onboarding is still in progress, wait until their profile has one.

1. Open the employee's profile

   On People, open the employee’s profile.

2. Open the deduction form

   Select Actions → Add Deduction. The form opens on the Benefits tab.

3. Choose the plan

   Choose a Benefit plan. The form fills its start and end dates from the plan.

4. Set the employee's dates

   Adjust Start date and End date within the plan’s active dates. The end date must follow the start date.

5. Enter the amounts

   Enter the company and employee amounts in the unit shown: per month or per pay period. At least one amount must be greater than $0.

6. Save the deduction

   Select Save.

If the company amount adds up to more than the plan’s annual company contribution limit in a year, the form says so and you can’t save. If the limit is above $0 and the plan uses Pay Period, the employee needs a pay schedule first. Until then, the form shows “Payroll schedule needed” and you can’t save.

Change or delete an employee’s benefit deduction

To change an unexpired deduction managed by your company:

1. Open the edit form

   On the employee’s Benefits tab, select Make changes on the deduction’s card.

2. Change the deduction

   Change the dates or amounts.

3. Save the changes

   Select Save.

To delete an unexpired deduction managed by your company:

1. Open the edit form

   On the employee’s Benefits tab, select Make changes on the deduction’s card.

2. Delete the deduction

   In the edit form, select Delete deduction.

3. Confirm the deletion

   In the confirmation, select Delete.

Add a post-tax deduction

Post-tax deductions include garnishments.

Contractors can’t open the post-tax deduction form, and you can’t add one for a terminated employee. An employee doing self-service onboarding must finish onboarding first: until then, their profile says “Complete employee onboarding to add post-tax deductions”.

1. Open the employee's profile

   On People, open the employee’s profile.

2. Open the form

   Select Actions → Add Post-Tax Deduction. Or, on Job & pay → Post-tax deductions, select Add deduction.

3. Name the deduction

   Enter a Display name.

4. Choose the deduction type

   In Deduction type, choose the type.

5. Choose the amount type

   In Amount type, choose Fixed amount or Percentage of income.

6. Choose the income type

   In Income type, choose Disposable income or Gross income.

7. Enter the amount

   Enter the Amount or Percent. For 15%, enter 15.

8. Set the start date

   Choose a Start date.

9. Add the optional details

   Optional: enter an end date, total amount, minimum salary, case number or agency details.

10. Save the deduction

    Select Save. Every shows “Post-tax deduction added”.

Change a post-tax deduction

1. Open the edit form

   On the employee’s Job & pay tab, under Post-tax deductions, select Edit in the deduction’s row menu.

2. Change the values

   In the edit form, change Amount type, Income type or the amount shown in Amount or Percent.

3. Save the changes

   Select Save.

Names, dates and agency details aren’t editable in that form.

After an employee is terminated, their post-tax deductions stay visible, but you can’t add or edit them.

Review deductions on a draft or failed run

1. Open the pay run

   On Payroll → All pay runs, select a Draft or Failed run.

2. Open deductions

   Select Deductions.

3. Inspect an employee's amounts

   Select an employee to see employee deductions and company contributions. The sheet is read-only.

See Run payroll for reviewing and submitting the run.