The following discusses certain paycheck deductions in more detail.

NOTES

•'Limit' is the amount of earnings subject to the tax, sometimes referred to as 'Subject Wages'.

•For a local or miscellaneous deduction, if you enter a rate - percentage - but set or leave the limit as '0', no tax will be calculated as the calculation stops once the employee earns zero dollars - the limit you have set for the year.

•If the tax has no limit - all wages are subject to the tax - enter 'NONE' as the limit.

•Section 125

•See the Section 125 Setup topic.

•Retirement

•See the Retirement Setup topic.

•Tips

•See the Tips Setup topic.

•Local Withholding

•Medlin Payroll Software allows you to use up to four different local withholding calculations.

•If you have to withhold for more than one locality, setup a separate Local WH for each, using the appropriate limit and percent.

•On the Setup / Program Options screen, check the 'Per Paycheck" box if you have more than one local deduction.

•This will cause the local deductions to be calculated based on the pay amount on each individual paycheck, instead of the year to date earnings.

•A mid year change in local tax, or an employee changing jurisdictions will not cause issues.

•Employees not subject to all of the local deductions can be set as 'exempt' from the desired deduction.

•Employee A - Subject to 1% City A tax only

•Employee B - Subject to 2% City B tax only

•On the Setup Screen

•Local WH 1 - City A - No Limit - 1.00%

•Local WH 2 - City B - No Limit - 2.00%

•In the Employee Data

•Exempt Employee A from City B tax.

•Exempt Employee B from City A tax.

•Miscellaneous Deductions

•The Miscellaneous deduction type can be used for nearly any type of deduction not specifically handled with one of the other deduction types.

•If it is a calculated amount, enter the appropriate limit and rate.

•If the amount varies, leave the limit and rate as '0' - zero.

•If the deduction is different for each employee, consider using a Fixed Deduction instead.

•Garnishment

•See the Garnishment Settings topic for more detail.

•State "Saver" Plans

•See the State Saver Deductions topic for setup and reporting information.