ADP, like other payroll (PR) vendors or software platforms allows for pre and post tax deductions. While a few of those are universal and a fixed part of the package (FICA, Fed, etc) you also have the ability to set up your own deductions and you can set up quite a few. In all of the payroll systems I’m familiar with you create deduction using a short identification code, $ or % and other stipulations such as a limit to total deductions or possibly a time frame.
Now, HR may not want to set up a large number of deductions. I personally would refuse to set up a dozen charitable deduction codes that vary slightly. Instead I would ask that we come up with a couple of standard deduction codes so it is manageable without much effort on the HR/PR end. Usually a % and a fixed dollar deduction and possibly add in a date range.
Then the start of the deduction would begin when the employee form arrives, but Payroll only has to set up one of two deductions. They forward the forms to Advancement and Advancement takes it from there. Payroll keeps a copy to support that the deduction was properly authorized. That’s what I do now and is common across other higher ed institutions I speak with.
A caveat to this is that if at any time the employee contacts HR/PR to stop a voluntary deduction, it gets stopped.
The dollars get posted to Advancement accounts through inter-company journals and whomever manages it from the Advancement side can pull a canned report by deduction code.
When I used ADP a couple employers ago, one of the reports they provided for download was a listing by employee code. I assume they still do.
Bob Swanson, CPA
Controller
Bowling Green State University
1851 N. Research Drive
Bowling Green, Ohio 43403
rswanso@bgsu.edu<mailto:
rswanso@bgsu.edu>
w 419.372.8597
From: Advancement Services Discussion List <
FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Teresa Goddard
Sent: Wednesday, June 5, 2019 11:11 AM
To:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
Subject: [EXTERNAL] [FUNDSVCS] Employee Deductions and ADP
Good morning!
I'm interested in folks who use ADP for their payroll systems and employee deductions. We are having a bit of trouble with HR not wanting to track the designations that deductions are directed toward. I've asked functionality questions and want to know what is able to be stored on a deduction record in ADP.
My thought is that payroll deductions are a standard function of a university and for HR to not want to do them is not a reason to suspend them and possibly set everyone up with a recurring gift.
Would appreciate any knowledge or thoughts on ADP deductions.
--
Teresa R. Goddard
Director of Development Services
765-658-4277<tel:(765)%20658-4277> (Office)
765-562-2481<tel:(765)%20562-2481> (Cell)
[https://docs.google.com/uc?export=download&id=1ub_iBKKb9oA_2x-qIGUY3TAYXp99AMKv&revid=0B5G0oV_nKbpwZFFuRlZlSVRLTzFHMjYxRVM2WUxxak00aStjPQ]
[https://drive.google.com/a/depauw.edu/uc?id=1Ag4qaWpZUVvGZKgW6R66lw-o5EHzls_E&export=download][https://docs.google.com/uc?export=download&id=1QFca4Y7MLuB4k_MOuvytQjeckHudoXZs&revid=0B5G0oV_nKbpweno4bjBxZVNiRnlUckhJKzVNREZDbWJjbVNRPQ]