Manual Deductions

Active manual deductions

An employer can set up deductions for their employees for services that may be done outside of Justworks. A few examples of typical deductions include: HRAs, medical, dental, and vision coverage, and transit benefits.

These deductions can be set-up on several frequencies. Frequencies include: first pay period, second pay period, first and second pay period, as well as one-time payments. First and second pay period apply to the 15th and last day of the month pay frequencies, respectively, and one-time payments will apply to any one-off payments scheduled.

How to schedule deductions from the Justworks dashboard

From your dashboard, search for the employee you need to manage benefits for. Once in their profile, scroll down to the "Settings" tab and find 'Manual Deductions.'

Next, select your desired Deduction Type and the amount. You can also add a label for the deduction, in case you’d like to specify the provider or enter more granular information than the deduction type.

Then, select the frequency. The available frequencies for manual deductions consist of the following:

Be sure to choose the frequency and the amount carefully. For example, if you’d like to have $150 deducted from an employee per month to go towards their health insurance, you can enter a flat amount of $150, and apply to either the first or second pay period. Alternatively, you can enter an amount of $75 and apply it to both pay periods, like so:

The frequency of "Every pay period" will apply the deduction to every regular scheduled payroll. Keep in mind that employees on a biweekly or weekly pay frequency may have a variable number of pay dates a month.

You can use the frequency of "One-time payments" if you would like the deduction to apply to off-cycle payments such as bonuses or commissions that are scheduled through "Make a payment". Deductions with the "One-time payments" frequency will never apply to regular payroll, and deductions created with any frequency other than "One-time payments" will never apply to payments scheduled using "Make a payment". To learn more about applying manual deductions to off-cycle payments, please refer to the "How to apply deductions" section of this article. 

Enter a start date for when the deductions need to begin. Keep in mind that this date needs to be no later than the processing date for the the first payment to which the deduction should apply. You can reference the 'Upcoming Payments' section from your dashboard to double-check processing dates if you need to.

You can optionally select an end date for when the deduction needs to stop, or leave it blank to have it last indefinitely. You can always enter an end date at a later time if you ever need to stop the deduction. If entered, the end date should be on the last pay date to which the deduction should apply.

You can use the start and ends dates to create a deduction that only runs for a particular number of payments. For example, if you wanted a deduction to apply only to the employee's next four paychecks, you could create a deduction with a start date of the first pay date and an end date of the fourth pay date, after which the deduction will no longer apply. Similarly, if you wanted a manual deduction to apply only once, you could create a manual deduction with both the start and end date set to the pay date to which the deduction should be applied.

Please note that Justworks will not automatically cap any contribution for benefits other than those for 401(k). It is up to the administrator and employee to ensure that deductions are stopped once an employee has reached the limit for any benefits where one might apply.

How to apply deductions

When scheduling an off-cycle payment (any payment that is not an automated salary payment or a timecard payment), you will have the option to choose whether or not you'd like to apply your Active Manual Deduction.

When scheduling a payment through "Make a Payment", checking yes will apply any and all insurance premiums, 401(k) contributions, wage garnishments, perks deductions, and manual deductions set up with a frequency of 'One Time Payments' that the employee has active to this payment.

Please note that if you check no to applying deductions, Slavic 401(k) contributions will still apply in accordance with your plan documents. Additionally, medical, dental, and vision deductions will not be applied to supplemental payments if they are scheduled to deposit on the same day as regular payroll.

Disclaimer

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.