Up to 18 different user-defined deductions or income categories may be set up for each Employeer. Each Deduction may be calculated in at least 4 different ways as follows:
(A)mount, (P)ercent or Gross, (H)ourly Rate, (G)arnishment, (D)isposable

Amount
If the Deduction amount, or income amount, is the same every pay date, choose the apropriate description from the Dropdown box in the "Deduction type" column ('Amount'). Then enter the amount in the field in the "Standard Amount" column.

Percent of Gross Choose the apropriate description from the Dropdown box in the "Deduction type" column ('Percent'). Then enter a % in the "Percent" column.

Hourly Rate Choose the apropriate description from the Dropdown box in the "Deduction type" column ('Hourly Rate'). Deductions or other income may be calculated based on the number of hours worked. Then enter the Hourly rate in the "Horly Rate" column.
Example: A restaurant wishes to charge the Employees for meals at the rate of 50 cents per hour worked.

Garnishment Choose the apropriate description from the Dropdown box in the "Deduction type" column ('Garnishment'). Then enter an amount in the "Standard Amount" column or a % in the "Percent" column.Generally, the Employee has to be subject to garnishment under Federal Law.
- If a percent (%) is entered, that garnishment is calculated as a percentage of the disposable (Net) Income, not the Gross Income. The program calculates the minimum amount that the Employee must take home before garnishments are applied, according to the Federal Law. According to Federal Law, the Employee is entitled to an Exempt amount before any garnishemnts are applied.
An Example of this may be an order to garnish wages for back taxes owed to a federal or state agency. Many states or countries do not have such provision.

Disposable Choose the apropriate description from the Dropdown box in the "Deduction type" column ('Disposable'). Generaly, if an Employee is subject to a garnishment under State Law, use this option if you wish to garnish a percentage of the Employee's Disposable Income (Gross-Taxes), without regard to the Federal Minimum substience level.
If the Employee is subject to such an order (i.e., Child Support), the amount garnished will be a straight percentage of the Disposable Income.

To-Date Amount Choose the apropriate description from the Dropdown box in the "Deduction type" column ('Amount'). Then enter an amount in the "To-Date Amount" column.
NOTE: The To-Date Amount is different than the Year-To-Date amount. YTD is cleared at the beginning of each year, whereas the TO-Date amount is not.

Limit Amount Choose the apropriate description from the Dropdown box in the "Deduction type" column ('Amount'). Then enter an amount in the "Limit Amount" column.
Limits, or ceillings, may be set up here for deductions or Income. When these limits are reached for this Employee, the program stops any further deductions or additions to Income. There are Annual limits and Long term limits.
Anual limits apply to certain deductions such a 401-k. If you wish to set up an annual limit, you must assign a W2 Box 12,14,11 or 10 code to this deduction. If you wish to set up a Long Term limit for an item that spans over several years (for example a Loan payment), leave the W2 box code blank.