Paycheck Deductions

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You can mark employees exempt from any deduction or combination of deductions, if allowed by the taxing agency and authorized by the employee.

 

The first four deduction calculations are built into Medlin Payroll - for accuracy - and cannot be edited by the software user.

Social Security

This is the employee part of the calculation.

To see the employer obligation, print a Payroll Tax Summary.

Medicare

This is the employee part of the calculation.

To see the employer obligation, print a Payroll Tax Summary.

Federal Withholding

Based on the specific employee's status, allowance, and pay period.

Can include an additional dollar amount, per check, if authorized, by the employee, on their most recent, valid, W-4 form.

State Withholding

Based on the specific employee's status, allowance, and pay period.

Can include an additional dollar amount, per check, if authorized, by the employee, on their most recent, valid, W-4 (or state equivalent) form.

If your state does not have income tax withholding, nothing will be withheld for this deduction.

 

The remaining deductions are set by you, as needed.

Not Used

Selecting this type turns off the particular deduction field.

CA SDI

California State Disability Insurance.

Uses the current tax year calculations as published by the CA EDD.

Should only be used when the employee or employer is in CA.

CT Pd Lv

Connecticut Paid Leave

Uses the current year calculation as specified by CT.

IN LWH

Indiana County Withholding.

The Indiana County withholding percentage can be set separately for each employee.

On the Employee screen, enter each employee's percentage by editing their State Withholding Information.

The rate shown on the Setup screen will be applied to IN employees without a percentage.

If an employee is NOT subject to IN County withholding, be sure to check the appropriate exemption for the employee.

MA PFML

Massachusetts Paid Family Medical Leave

MD FAMLI

Maryland FAMLI

NY DBL

New York Disability.

In the limit field, enter the weekly wage maximum times 52.

If the weekly maximum wage subject to DBL is $120, enter 6240 as the limit - $120 * 52 = 6240.

Enter the rate.

Only calculated if the employee has NY set as their State Tax calculation.

NY PFL

New York Paid Family Leave.

The calculation is built in.

On the Setup screen, the 'Limit' is the maximum subject wages for the year (the weekly maximum * 52).

NYC WH

New York City Withholding.

Uses the current calculations as provided by New York State.

NYC WH is only calculated NY is selected as the employee's State Tax Calculation.

PA UI-EE

Pennsylvania Unemployment Insurance - Employee Contribution.

PA UI is collected based on all employee 'remuneration'.

This includes all earnings, before any deductions.

VT CCC

Vermont Child Care Contribution. Employee Contribution.

WA PFML

 Washington State Paid Family Medical Leave.

Hourly 1, Hourly 2

These can be used for any deduction based on the number of hours worked, such as Oregon's disability and Washington State Labor & Industries.

Hourly 2 is only calculated when using the Professional Edition - to allow a separate calculation for an employees second pay rate.

Garnishment

See the Garnishment Settings topic for more detail.

Retiremnt

Retirement or 401K.

Automatically set to the retirement or 401K amount entered as an Adjustment to Income.

You must have either 401K or Retirement selected as one of the 'Adjustments to Income' for this deduction option to work properly.

To enter a maximum contribution per year, enter the maximum contribution amount in the Limit field.

See the Retirement Setup topic for more detail.

Tips Ded

Tips Declared Deduction.

The amount of tips to remove from the net pay.

See the Tips Setup topic for more detail.

Fixed Ded 1-4

Fixed Deductions.

A fixed amount or percentage, set individually on the Employee screens.

Local and Misc Deductions

For an automatic calculation, enter the appropriate limit and rate for each Local/Misc deduction.

To manually input the amount on each check, set the limit and rate (both) to '0'.

If all wages are subject to the tax, set the rate and enter 'NONE' as the limit.

Note: If you enter a rate, but set the limit to '0', no tax will be withheld as the calculation stops once the employee earns zero dollars  - the limit you have set for the year.

 

Heading

Deduction headings can be edited as desired.

For example, a Misc Ded deduction heading could be changed to Uniform or Loan Payment.

Use caution when changing the headings as the tax calculation is based on the deduction type and not the heading text.