Before You Begin:
- Make sure that you have set up the Tax Compliance Rules that correspond with the deductions that are creating. For more information, see Configure Tax Compliance Rules for ConnectedPay.
- Make sure that you have an XREF codes for each of the deductions that you are creating. Each deduction requires a unique XREF code. Your payroll partner provides you with those XREF codes.
- Make sure that you are familiar with the general concepts about deductions. For more information, see Deductions and the Deductions Tab.
Configuring Deductions to use in a ConnectedPay project
This task describes creating the Pre Tax deduction, but you can follow the same steps for the Post Tax deduction.
Important: The payroll partner must give you a unique Reference Code (XREF code) for each earning that you create to ensure that the GPRI works correctly.
To configure Deductions to use in a ConnectedPay project:
- Go to Payroll Setup > Earnings and Deductions, and click the Deductions tab.
- Click Add to open the Tax and Compliance dialog, which displays available tax compliance rules in the left column.
- Locate and select the International Pre Tax tax compliance rule that you created, and then click Select to load a blank deduction that uses the tax compliance rule setting you selected as a template.
- In the Name and Description fields, enter the ISO code and the name of the deduction. For example MEX Loan.
- In the Reference Code field, enter the XREF code given to you by the payroll partner that corresponds to this deduction.
- Click the Parameters tab and select the appropriate options. Review the section starting with the topic Deductions and the Deductions Tab for general information.
- Click the Pay Groups tab, and add the appropriate pay groups to determine which employees this deduction applies to.
- Click Save.