Creating a New Deduction on a District Level

Your SchoolFi Implementation Team will create all required deductions, such as - Taxes, Pensions, Healthcare, Docks, and Workers Comp.  This page will guide you through creating any Elected (Voluntary) deductions that the district offers.

Deductions are created from the Payroll→Setup→Deductions screen:

To begin creating a deduction:

• First, be sure you are in the correct year by looking at the "Year" selector at left above the list of deductions:  .  The Deduction will be created for the selected calendar year.
• Next, click the Add Deduction  button.  This brings up the "Add Deduction" dialog:

• Replace the contents of the Code and Name fields with a code and the name of the new Deduction.  Codes can have upper case letters, numbers and underscores.  They cannot contain spaces or special characters (by convention, codes do not contain lower case letters).
• Select the "Class" of the Deduction.
• The "Seq" (sequence) field positions the new Deduction at the end of the existing list of Deductions.  You can select a sequence number that positions the new Deduction where you wish it to fall in the list if you wish.  The list is NOT alphabetical - it is sorted strictly by the sequence numbers.  If you wish it to be alphabetical, you must select sequence numbers appropriately.
• The "Create 2021-22 Balance Sheet for Agency Link to Budget" check box will automatically create the balance sheet account that will be used in Agency operations.  You should leave this checked off if you will be using the Agency module in SchoolFi.
• Click the Add button to create the Deduction and move to the "Modify Deduction" screen to finish defining the new Deduction:

To assign settings to a deduction:

1. Enabled - to enable the deduction, check this box off.  This will globally enable the deduction and will take the yellow warning at the top of the screen away.  This deduction, when assigned to employees, will automatically be turned on.  To globally turn it off, uncheck the Enabled checkbox.
2. Do Not Rollover - check this box if you do not want this deduction to roll over into next year.
3. Agency Vendor - if you will be using our Agency module, and you have your Agency Vendors created, use this field to enter the Agency vendor to whom this deduction will be paid.  
4. Agency Balance Sheet - if you left the checkbox checked when you created this deduction, the balance sheet will already be populated, as shown in the sample above.  Otherwise, click the Create Balance Sheet Account button to create one if you will be using our Agency module.  Otherwise, it can be left blank.
5. Name - enter the full name of the deduction
6. Short Description (Report Headers etc.) - this is an abbreviated version of the Name.  It is used in reports, pay stubs, etc. to help with space restrictions.
7. Description - describes the deduction.  Can be the same as the name, or it can be different.
8. User Defined Field Name - DO NOT USE unless you have been instructed to do so by Genesis staff.
9. Drop-down list (sets) - DO NOT USE unless you have been instructed to do so by Genesis staff.
10. For Pension - use this drop-down to select the pension group to which this deduction is tied.
11. Type of Pension Deduction - use this drop-down to select one of the following options to indicate the type of pension deduction: 
    • Arrears
    • Back DCRP
    • Back Insurance
    • Back Pension
    • Contributory Insurance
    • Imputed Income
    • Loans
    • Pension
    • Pension (Hourly)
    • Purchases
    • SACT
    • Supplemental Annuity

1.  For employees in these terms (10, 10.5, 11, 12) - if you want this deduction to be automatically created for all employees in the selected term codes when the Create Missing Required Deductions button on the Employees Deductions tab is used, check off the appropriate term codes.

1. Class - below is a list of deduction classes available to you.  It is important to select the proper class because they are used in year-end tax reporting and W2 processing.
   
                                                   

1. Category for Reporting - below is a list of categories available to you.  It is important to select the proper class because they are used in year-end tax reporting and other payroll reports.

1. W2 Display Option - if this deduction is reported on the W2, use this drop-down to select the W2 code that applies to it.  
2. NJEA Dues - check this box if this deduction is used for NJEA dues.  Only one deduction can have this check box checked.  This indicates the deduction that will be used if you take advantage of the import process for the NJEA dues file.
3. Gross used for Calculation - use this drop-down to select the type of gross that will be used if this deduction is set up using the deduction type of "Percentage of Gross...."
4. Summer Pay - use this check box if this deduction is the district's Summer Pay deduction where 10 month employees have 10% of their salary deducted throughout the year, and then they receive that money back during the summer.
5. Tax Shelter Type - if this deduction is a Tax Shelter (TSA), use this drop-down to select the type of tax shelter (403b, 403b payout, 457b, misc.)
6. Tax Options - if this deduction is exempt from Federal Tax, State Tax, and/or FICA taxes check the appropriate box(es).  These flags cannot be changed if payrolls have been posted with this deduction. Open a support ticket in JIRA if these flags need to be changed after a payroll has been posted with this deduction.
7. Include in these other payrolls - choices are Base Only and Casual Only.  You can check one or the other, or both. 
   • Base Only - check this box if this deduction should only be taken from payrolls that are base only (core payrolls).
   • Casual Only - check this box if this deduction should be taken from a supplemental/casual only payroll.  Leave unchecked if this deduction should never be taken from a supplemental payroll.  For example, healthcare related deductions normally are not taken from supplemental payrolls, only base payrolls.

• Calculate Year to Date based on - select whether the deduction's year-to-date tracking/reporting runs on a fiscal or calendar year.  For example - Summer Pay runs on a fiscal year basis, statutory tax deductions run on a calendar year basis.
• Reset Employee's Year to Date at - generally settings mirror the calendar year to date based on selection as described in the line above, but you have the option to select never.
• Type - use this drop-down to select how this deduction will be calculated.   
  • The options that start with "System" are those that will automatically be applied/calculated using system background settings.  Deductions that are created by Genesis will have these settings.
  • The options that have "Declining Balance," when assigned to an employee, must have both a per-pay amount and a balance in the employee's deduction record in order for a deduction amount to be deducted.
  • The options that have "Percentage of..." when this option is chosen, you MUST indicate the type of gross in the "Gross Used for Calculation" drop-down.  If this is not done, an amount will not be deducted from the employees.
                       
  • Depending on which Type you choose, you will see fields open up beneath the setting allowing you to enter specific settings.  For example, when a percentage is chosen, you will see the following setting options:
                   

• 
  

  • Simple Employer Amount - Only use this with Simple Amount and Simple Amount (Monthly) types only.  
  • Deactivation Dates - use these date ranges to turn off deductions that should not be taken during a certain time period, such as summer months.  For example, for the pension deductions and the NJEA deduction you would enter 07/01/YYYY through 08/31/YYYY in all term codes.  Another example, for TSA deductions you may want to enter the same date range for 10 month term codes.  That way when a 10 month employee works in the summer (earning casual pay) the TSA will not come out of their pay check during those months.

Click Save after creating all your settings.

Second Check Warning Banner - 

You will notice that on some deductions there is a yellow banner that says "This deduction will not be included on a 2nd check."  This banner is triggered when certain deduction classes are used in the deduction setup.  Deductions with these classes will not come out when the Second Check option is selected for casual other earnings. Below are the deduction classes that trigger that warning.

• CODES THAT WILL NOT BE INCLUDED IN SECOND CHECKS ARE:
   *005 - Workers Comp
• *105 - Fringe
• *150 - Docks
• *200 - TSA/Shelter
• *250 - CAFE-SECT 125
• *255 - Roth
• *500 - Elected Deductions
• *600 - Healthcare/Medical