Deductions & Garnishments are the amounts taken out of an employee's pay — benefits like medical insurance and 401(k), as well as court-ordered garnishments. Setting them up per employee tells payroll exactly what to withhold from each paycheck.
Where to find Deductions
From the left sidebar choose HR & Payroll, then Deductions.
What you see on this screen
| Column | What it shows |
|---|---|
| Employee | The person the deduction applies to. |
| Deduction | What's being withheld — e.g. Medical (BCBS PPO), 401(k) 4% match. |
| Category | How it's treated for tax — Pre-Tax or post-tax. |
| Method | How the amount is figured — a Flat Amount or a % of Gross. |
An employee can have several deductions (for example a flat medical premium plus a percentage 401(k) contribution).
Adding and editing
Click Add to set up a deduction — choose the employee, what's being deducted, its tax category, and whether it's a flat amount or a percentage of gross. Right-click a row for its actions.
The Pre-Tax vs post-tax category matters: pre-tax deductions reduce taxable wages, so they affect the taxes withheld. Set it correctly for each benefit.
How Deductions connect to the rest of the app
When payroll runs, each employee's deductions are withheld from their gross pay to produce net pay, and pre-tax items reduce the taxable base. See Payroll.
Permissions
Viewing requires HR view access; adding or editing deductions requires the manage permission. This is sensitive pay data — access is usually limited to HR and payroll roles.