The Payroll System has a flexible deduction mechanism. There is a file of standard deductions and a file of employee/employer deductions. The Standard Deductions File contains deductions for either employer or employee and is used as a master. The Employee/Employer Deduction File contains all the deductions (both employee and employer) for each employee. A special flag can be set in the Employee/Employer Deduction File that causes the Standard Deductions File values to be used for any single deduction.
The next section describes the format of deduction files and how the values are used in calculating deductions. The last section covers the standard deductions screen.
Deductions are of four types:
Percentages with limits
Table lookups (both percentages and fixed amounts)