Setting up a pre-tax deduction in payroll in Dynamics SL

  • Article

This article provides a solution to an issue that a pre-tax deduction has to be set up in payroll in Microsoft Dynamics SL.

Applies to:   Microsoft Dynamics SL 2011
Original KB number:   2724360

Symptoms

A pre-tax deduction has to be set up in payroll in Microsoft Dynamics SL.

Resolution

In this set up an employee can decide either a percentage or a fixed amount so that you can do both with a single deduction ID.

  1. In Deduction Maintenance (02.290.00), enter a deduction with the following values.

    • Deduction Type = Pension
    • Base Type = Gross Wages
    • Calculation Method = Fixed Percentage
    • Fixed/Pct/Rate = 0.00

      Note

      If the Lifetime box is unchecked, any amount entered in Max Deduction Amount represents a maximum annual deduction amount. If the check box is selected, any amount entered in Max Deduction Amount represents a maximum deduction amount for the life of this deduction.

    • On the W2 Control tab, enter the box that you want this deduction to use on the W2, and whether the retirement box should be checked on the W2.

  2. In Employee Maintenance (02.250.00), on the Deductions tab, enter the specific percentage in Fixed Amt/Pct/Rate if the employee selects a percentage. Enter a negative annualized amount in Additional Credit Amount if the employee selects a fixed amount. Enter a Max Deduction Amt if needed.

  3. In Earnings Type Maintenance (02.270.00), add the deduction to any earnings that it should be withheld from.

  4. In Work Location Maintenance (02.280.00), add the deduction to any work locations that are subject to this deduction.

    Note

    If the Subject All Work Locations box was checked in Deduction Maintenance, this step isn't required.

  5. In Deduction Maintenance (02.290.00), enter the deduction ID of your Federal Income Tax withholding deduction. Select Exemptions. Enter the following values for the exemption.

    • Marital Status = All Statuses
    • Type = Exemption
    • Exemption/Credit ID = Any four-digit ID
    • Description = Enter up to a 30 character description
    • Base Type = Deduction Amount
    • Base Deduction ID = The pre-tax deduction ID from step 1
    • Fixed Pct/Rate/Amt = 100.00

  6. Add exemptions to any other deductions that the pre-tax deduction is exempt from using the same steps as in step 5.