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Administrator Guide
Last Updated: 2023-06-23
Example: Create a Deduction for Employee Post-Tax Contribution to Health Care Benefits (USA)

Example: Create a Deduction for Employee Post-Tax Contribution to Health Care Benefits (USA)

This example illustrates 1 way to create a deduction for a worker's post-tax contributions to health care benefits.
Paul has post-tax contributions to a health care benefit plan. You want to create a deduction for those post-tax contributions.
  • You have a pay components group named
    Benefits During Leave
    for non-active workers.
  • Security:
    Set Up: Payroll (Calculations - Payroll Specific)
    domain in the Core Payroll functional area.
  1. Access the
    Create Deduction
    task.
  2. Enter these settings:
    Option Description
    Name
    Health Care - EE (Post-Tax)
    Code
    HC-POST-TAX-EE
  3. Enter these settings on the
    Effective Dated
    tab:
    Option Description
    Effective Date
    Current Date
    Run Category Eligibility
    Regular
    Worker Eligibility
    Benefits Employee Cost (Post-tax) or Pay Input Exists
    Pay Component: Not Previously Paid in Period
    Processing Primary Job
    Calculation
    Benefits: Employee Cost (Post-tax)
    Recalculate during Retro
    Select the check box.
  4. Enter these settings on the
    Non-Effective Dated
    tab:
    Option Description
    Groups
    Benefits During Leave
    Post Tax Deductions
    Benefit Plans
    Select the health care benefit plan.
Create a deduction to calculate the employer's taxable health care contribution.