How to Add a New Deduction and Withhold It from Each Paycheck Automatically

Halfpricesoft Online Payroll System makes it easy to handle taxes and deductions. Here is guide about how to add a new deduction and withhold it from each paycheck.

  • Option 1: Deduction by Amount
  • Option 2: Deduction by Percent


    • Option 1. How to Add a New Deduction by Amount and Withhold It from Each Paycheck Automatically


    1.1. Add a New Deduction by Amount


    1.1.1 You can click the left menu "Settings" then "Payroll" then "Deduction" to view the Company Deduction Setup screen.

    1.1.2. Check one customized deduction item, then click the button behind it to view the Deduction Details screen.

    1.1.3. Input the new name (ie: My_dedution).

    1.1.4. Leave the "Deduction in percentage of wage" option box unchecked.

    1.1.5. Exemption options: if it is a pretax deduction (ie: exempt from FICA tax, fedetal/state tax), you can check exemption option box. Otherwise, leave it unchecked.

    1.1.6. Click the "Save" button on Deduction Details screen.

    1.1.7. Click the "Save" button on Company Deduction Setup screen to update the database.

    add a new deduction

    1.2. Edit the Employee Settings to Specify the Amount of the New Deduction


    specify the employee deduction


    1.3. Add a Paycheck


    add a paycheck with the new deduction



    Option 2. How to Add a New Tax/Deduction by Percent and Withhold It from Each Paycheck Automatically


    2.1. Add a New Deduction by Percent


    2.1.1 You can click the left menu "Settings" then "Payroll" then "Deduction" to view the Company Deduction Setup screen.

    2.1.2. Check one customized deduction item, then click the button behind it to view the Deduction Details screen.

    2.1.3. Input the new name (ie: My_dedution).

    2.1.4. Check the option box "Deduction in percentage of wage".

    2.1.5. Exemption options: if it is a pretax deduction (ie: exempt from FICA tax, fedetal/state tax), you can check exemption option box. Otherwise, leave it unchecked.

    2.1.6. Click the "Save" button on Deduction Details screen.

    2.1.7. Click the "Save" button on Company Deduction Setup screen to update the database.

    add a new deduction by percent

    2.2. Edit the Employee Settings to Specify the Rate of the New Deduction


    specify the employee deduction by percent


    2.3. Add a Paycheck


    add a paycheck with the new by percent deduction


    Ralated Links

  • How to add a customized deduction and withhold it from each paycheck automatically

  • How to handle local tax

  • How to handle FUTA and SUTA

  • How to add and print a paycheck

  • How to change the pay peroid



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