The video shows a walkthrough on how to set up a company deduction
What is a payroll deduction?
A payroll deduction is money withheld from an employee’s paycheck to pay a third party on the employee’s behalf.
Common examples include:
Pre-tax deductions: Health insurance premiums and 401(k) contributions
After-tax deductions: Loan repayments, wage garnishments, and employee purchases
What is the difference between a deduction and a contribution?
In Patriot Software:
A deduction is withheld from the employee’s paycheck. It reduces the employee’s net pay.
A contribution is paid by the company. Typically contributions appear for informational purposes only and does not reduce the employee’s net pay, but there are some instances where company contributions do affect taxability on certain taxes.
Important: Patriot Software does not send your deductions or contributions to third-party providers unless:
Your 401(k) provider is Patriot’s partner, Vestwell
You use NEXT for pay-as-you-go workers’ compensation
You are responsible for sending deduction and contribution funds to the appropriate third parties.
How do I add a company-level deduction?
Before you can assign a deduction to an employee, you must first create the deduction at the company level.
To add a company-level deduction:
Go to Settings > Payroll Settings > Deductions & Contributions.
In the Deductions section, click Add New.
Enter the required fields.
If you use Patriot Accounting, choose a liability account for your accounting integration.
Click Save.
After you save the deduction, you can assign it to employees.
For help with setup fields, see Company-Level Deduction Setup: Field-Level Help.
For instructions on assigning deductions to employees, see Employee-Level Deductions.
How do I edit a company-level deduction?
You can edit an existing company-level deduction from your payroll settings.
To edit a company-level deduction:
Go to Settings > Payroll Settings > Deductions & Contributions.
In the Deductions section, click the Edit icon next to the deduction.
Update the fields you need to change.
Click Save.
If the deduction has already been used in payroll or assigned to an employee, the Deduction Type and Method fields are locked. Other fields remain editable.
If you change a default value that is used on an employee record, the employee’s deduction updates automatically.
For more information, see Why Can’t I Edit a Company-Level Deduction?.
How do I delete a company-level deduction?
You can delete a company-level deduction only if it has not been used in payroll or payroll history.
If the deduction has already been used in payroll, you cannot delete it. Instead, inactivate the deduction.
To delete a company-level deduction:
Go to Settings > Payroll Settings > Deductions & Contributions.
In the Deductions section, click the Delete icon next to the deduction.
Select Yes to confirm the deletion.
Select No to cancel and keep the deduction.
The Delete option only appears if the deduction has not been used in a payroll.