Non-Benefit Deductions
How do I handle non-benefit deductions using BambooHR Payroll?
Purpose: In addition to benefit deductions, employees can have other post-tax deductions pulled from their paychecks. These might include Child Support, Cash Advance Repayments, Garnishments, etc. At BambooHR, we call these non-benefit deductions. This help guide will show you how to set up a non-benefit deduction for an employee.
Adding non-benefit deductions
To add a non-benefit deduction, navigate to the employee's Pay Info tab and click Deductions. Then, click + Add Deduction.
- Deduction Type: Select the deduction type by clicking on the down arrow.
- Deduction Name: Enter a deduction name that helps identify the deduction on an employee's pay stub.
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Start Date and End Date: You can easily set up when the deduction will need to start and end on the employee's paycheck. To enter the start and end dates for pulling into payroll, enter today's date or the date you received the garnishment notice/non-benefit deduction.
- Please note that the start and end dates cannot be the same date. The end date will need to match the pay date of the final payroll it needs to be deducted from.
- Amount Per Pay Period: Set a dollar amount or percentage. If you choose percentage, you will then choose whether that should be pulled from the employee's gross or net pay.
- Add a paycheck max or total payoff amount: Depending on the type of deduction, you can enter a total payoff amount or specify the deduction amount from an employee's paycheck.
- Annual Max: If you are adding an Other Post-Tax Deduction, you have the option to specify an annual max amount, but it is not required.
- Be sure to click Save.
One pay cycle vs. multiple pay cycles: If the deduction/garnishment only needs to be paid out on one payroll, the end date needs to match the pay date of the final payroll it should be deducted from. If this is needed for multiple payrolls, or if you will need it in the future, you can leave it open-ended.
When you no longer need this deduction/garnishment, you can then add an end date that matches the pay date of the final payroll this will be included in.
Incorrect dates entered: If you enter the dates incorrectly, the line item will stay on the record after the specified end date and appear grayed out. The deduction record will no longer appear on the Active list of deductions (it will appear on the list of inactive deductions) on the Pay Info tab. If this occurs, we recommend adding a note about what happened on the Notes tab of the employee profile.
If any loan repayment deduction type is selected and the employee has multiple loan repayments, you will also see an option to select Loan Number next to the deduction name. This number is usually provided by the lender.
Once the non-benefit deduction has been added, it will immediately be deducted from the employee's paycheck. Your company will then be able to distribute the withholdings on your employee's behalf.
Employees are automatically given access to view non-benefit deductions. However, only Full Admin or Payroll Admin users can add, edit, or delete non-benefit deductions on the Pay Info tab.
The following non-benefit deductions are all post-tax deductions and will be deducted from the employee's net pay after taxes are withheld.
- Cash Advance Repayment
- 401(k) Loan Repayment
- 403(b) Loan Repayment
- Tax Levy*
- Child Support*
- Other Post-Tax Deduction
- Other Loan Repayment
- Other Garnishment*
*Payee required only if marked as collectible by BambooHR.
Removing non-benefit deductions
If you would like to remove a non-benefit deduction from an employee's profile, you can either end or delete the deduction within the Deductions section of their Pay Info tab. You will be prompted to end the deduction by default. The option to delete a non-benefit deduction will only become available if there is no payroll history.
Click the "X" next to the record you wish to remove. A modal will then pop up for you to provide an end date. If there is no payroll history, an option to delete the deduction will also display. Make sure to save your changes.
If you select a deduction type that is collected and paid for by BambooHR Payroll, you must add a payee when setting up the deduction on the employee's Pay Info tab. You will be required to select the Payee State and Payee Name from the drop-down menus. For Tax Levy and Child Support Garnishment types, you will be able to select the Payee from a pre-populated drop-down list. For Other Garnishment deduction types, a pre-populated list will appear, but you will have the option to click +Add Payee to set up a new one (see below).
Enter the Case Number, Remittance ID*, and Case Description before saving the deduction.
*This will only show for Payee information for Child Support Garnishments.
Keep in mind that a pre-populated list will appear in the Payee dropdown based on Payee State for Tax Levy and Child Support garnishment types only. This is to ensure there are no duplicate payees in BambooHR. However, if a certain payee does not exist under the Tax Levies or Child Support category, you can use the Other Garnishment category instead and enter the payee.
Please upload any supporting documentation to the employee's profile.
Add a payee for Other Garnishments
If you click +Add Payee when setting up an Other Garnishments type, you will be required to enter the information above. You will not be able to add a duplicate payee which is validated by the Payee Name and Address fields. To see a list of all Payees, navigate to Settings > Payroll. Then select Garnishment Payments.
Payroll settings
For BambooHR Payroll to collect and pay non-benefit deductions on your company's behalf, you will need to indicate this setup in Payroll Settings, as shown in the section above. Check the boxes next to the garnishment types you want BambooHR to handle.
If you choose to have BambooHR collect and pay garnishments on your company's behalf, please be aware that there is a $4 fee per garnishment per pay cycle.