The “Deductions” tab is where you can create and modify deductions that are referenced throughout Arborsoft. Though you’ll start off with default deductions and rates, you’ll want to review the existing items and likely make changes. You can also always insert a new item by clicking “Insert” at the top and entering in the relevant details. Keep in mind that some items (such as SUTA/FUTA) will have rates that you’ll need to update, other deduction rates are updated automatically via our tax library vendor Symmetry and users can’t alter the rates.
Detail
To add a deduction:
Navigate to the deductions tab
Click Insert
Check any relevant boxes
Fill in all bold (required) fields
Click Save
The area below the deductions allows you to name the deduction, configure rates, and fine tune the details of how it will be used. The details of the fields are as follows:
Active – Toggling this will determine if the deduction applies or not, anything marked with a “N” won’t apply but will still be listed amongst the deductions.
Calculated – Used for rare custom calculations
Mandatory – This will include the deduction when selecting the “all mandatory deductions” to the employee deduction tab.
Pre-Tax – Checking this tells the deduction to calculate before standard taxes are deducted
Lookup – Makes the deduction available in the payroll module
Multiple Employer – Uses multiple employer rates vs the rate listed below
System Defined – Makes the deduction set and not changeable
Name – Names the deduction
Print On Check – This allows you to differentiate between the name of the deduction in Arborsoft, and how it’s displayed on a check
Type – Determines if the deduction applies to employees or your company
Rate Type – This drop-down displays the logic of various rates, such as percentage of gross, net, flat amount, etc.
Rate – Where the rate can be entered
Limit/Base – Sets a limit for certain types of deductions (SUTA, FUTA etc.)
Frequency – This drop-down displays how often you’d like the deduction to apply
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