Lesson 4.4: Employee Adjustments

In addition to standard wages and taxes, you will often need to assign specific additions or subtractions to an employee’s paycheck. In FastFund Payroll, these items are managed within the Employee Adjustments tab of the employee’s profile.

Adjustments are categorized into three distinct types:

1. Deductions: Amounts withheld from an employee’s paycheck, other than taxes (e.g., health insurance premiums, union dues, employee charitable donations, or annuity plans).
2. Other Income: Payments made to the employee that are not part of their normal salary or wages (e.g., travel allowances or expense reimbursements).
3. Contributions: Payroll items that are not withheld from the employee’s net pay, but are tracked because they are considered a benefit for tax purposes (e.g., employer retirement matches).

Accessing Employee Adjustments Before assigning an adjustment to an individual employee, the core adjustment profile must already be created in the global Master Adjustments table. Once established globally:

1. Navigate to Lists > Employees and click on the specific employee’s name.
2. Click on the Adjustments tab. This screen will display any adjustments already assigned to the employee, including their basis, amount, and active status.

Adding a New Adjustment

1. Click the New + icon to open the adjustment entry screen.
2. From the Type drop-down menu, select the specific adjustment you want to assign (the list is grouped by Contribution, Deduction, and Other Income).
3. Define the Amount. You have two options here: you can either manually enter a custom amount/percentage specifically for this employee, or you can check the Use Global Value box to automatically apply the default amount established in the Master Adjustments table.
4. Define the Limit. If the adjustment has a maximum annual cap (such as a maximum yearly health insurance deduction), enter it here. Alternatively, check the Use Global Limit box to apply the company-wide default. Once the employee reaches this exact limit during the calendar year, FastFund will automatically stop withholding or adding the adjustment.
5. Click SAVE.

Editing, Deleting, and Inactivating Adjustments To edit an existing adjustment, simply click the Magnifying Glass icon next to the adjustment name. You can update the amount or the limit, and clicking SAVE will apply these changes to future payrolls without altering historical data.

To protect the integrity of your accounting audit trail, FastFund will prevent you from deleting any adjustment that has already been used in a posted payroll batch.

• Delete: If the adjustment has never been used in a payroll calculation for that specific employee, the red DELETE button will be active, and you can remove it entirely.
• Inactive: If the adjustment has been used, the Delete button will be grayed out. If the employee no longer requires the adjustment (for example, they opted out of the health insurance plan), you must open the adjustment, check the Inactive box, and click SAVE. Inactive adjustments will no longer calculate during payroll batches but remain on the profile for historical reporting.