This article covers Step 5 of the Patriot payroll setup wizard: adding company-level deductions and contributions. You'll set up deductions and contributions at the company level first, then apply them to individual employees in a later step.
Complete this step if your company offers insurance or retirement plans, or if any employee has a garnishment or child support order.
If you don't have any deductions or contributions to set up, skip ahead to Setting Up Worker's Compensation in the Wizard. If you haven't completed Step 4 yet, see Setting Up Hours and Money Types in the Wizard.
Video Walkthrough
Set Up a Company Deduction
A deduction is an amount withheld from an employee's paycheck. Common examples include health insurance premiums, garnishments, and child support.
To add a company-level deduction:
In the payroll setup wizard, navigate to the Deductions step.
Click Add a Deduction.
Enter a Description for the deduction (for example, "Health Insurance" or "Child Support"). This label will appear on paystubs.
Select the Taxability — choose whether the deduction is taken pre-tax or post-tax. Pre-tax deductions reduce the employee's taxable wages; post-tax deductions do not.
Choose the Calculation Method - Example Fixed Dollar Amount — the same flat dollar amount is withheld each pay period or Percentage — a percentage of the employee's gross wages is withheld each pay period
If the deduction amount is the same for all employees, enter a Default Amount. You can override this amount for individual employees when you apply the deduction to them later.
If applicable, set a Limit — the maximum amount that can be withheld per year. When the limit is reached, the deduction will stop automatically for that calendar year.
Select the appropriate W-2 Box and Label if the deduction needs to be reported on the employee's W-2. If the deduction does not require W-2 reporting, leave these fields blank.
Click Save.
Repeat these steps for each deduction your company uses.
Set Up a Company Contribution
A contribution is an amount your company pays on behalf of an employee, separate from their wages. Common examples include a 401(k) employer match and medical insurance premiums paid by the employer.
To add a company-level contribution:
From the Contributions section of the wizard, click Add a Contribution.
Enter a Description for the contribution (for example, "401(k) Employer Match" or "Medical Insurance").
If the contribution is tied to a deduction — for example, an employer 401(k) match that corresponds to an employee 401(k) deduction — select the matching deduction from the Tied to Deduction dropdown. Linking the contribution to its deduction keeps the two amounts connected on employee records and reports.
Choose the Calculation Method, example: Fixed Dollar Amount — a flat dollar amount your company contributes each pay period, or Percentage — a percentage of the employee's wages your company contributes each pay period.
Select the Taxability of the contribution — whether the employer contribution is pre-tax or post-tax.
If applicable, set a Limit — the maximum employer contribution amount per year.
Select the appropriate W-2 Box and Label if the contribution needs to appear on the employee's W-2.
Click Save.
Repeat these steps for each contribution your company makes.
Once you've finished setting up your deductions and contributions, proceed to Setting Up Worker's Compensation in the Wizard.