Payroll deductions are amounts withheld from an employee's paycheck by an employer to cover various obligations, such as taxes, benefits, and retirement contributions. Playground allows you to set up post-tax and pre-tax deductions to recur automatically.
Add a Post-Tax Deduction
A post-tax deduction is an amount subtracted from an employee's paycheck after taxes have been applied. Follow the instructions below to add a post-tax deduction for an employee.
From your Admin Dashboard, navigate to Payroll and then click Deductions.
Click the Post-Tax Deduction tab and then click Add Deduction.
The Add Miscellaneous Deduction window will open.
Select the employee for whom you would like to add a deduction and add a description of the deduction.
Designate a dollar amount or percentage of the employee's after-tax paycheck that should be deducted. This amount will be deducted per pay period.
Add a start date for the deduction.
Note: The deduction will be deducted in full for the first payroll that occurs after the start date. The deduction will not be prorated.
[Optional] Add a total amount to be deducted or an annual limit. The deductions will stop after the total amount or limit has been reached.
Click Save Deduction. The deduction will now appear on the deduction home screen and will be visible in the first payroll after the effective start date.
Add a Pre-tax Deduction (Benefit)
Pre-tax deductions, often called benefits, are amounts subtracted from an employee's gross pay before taxes are applied. These deductions reduce the employee's taxable income, thereby lowering the amount of taxes owed. Common pre-tax deductions include contributions to retirement plans like 401(k), health insurance premiums, and contributions to flexible spending accounts (FSAs) or health savings accounts (HSAs).
From your Admin Dashboard, navigate to Payroll and then click Deductions.
Click the Benefits tab and then click Add Benefit.
The Add Benefit window will open.
Select the employee for whom you would like to add a deduction, select the benefit type, and add a description.
Period: The period determines how the total deduction will be calculated each pay period.
Monthly: The total deduction will be divided by the number of pay periods that occur in the month. Each pay period, an equal installment of the total deduction will be deducted from the employee's paycheck.
None: The total deduction entered will be deducted from each paycheck.
Company Contribution: If the company is contributing to the employee's benefit, add the company contribution amount. The company contribution must be tracked in payroll as some benefits must be reported on employee W2s.
Employee Contribution: Enter the employee contribution as a set dollar amount or as a percentage of the employee's pre-tax pay.
Add the effective start date for the benefit and an end date if applicable.
Click Save. The benefit will now appear on the benefit home screen and will be visible in the first payroll after the effective start date.
Add a Garnishment
A payroll garnishment is a legal process in which an employer withholds a portion of an employee's earnings to pay off a debt, as ordered by a court or government agency. This deduction continues until the debt is fully repaid and can be applied to obligations such as child support, unpaid taxes, student loans, or creditor judgments.
💡 The order (notice) of garnishment will indicate how you must handle the withheld funds. If you have questions about the garnishment, reach out to the issuing agency directly.
From your Admin Dashboard, navigate to Payroll and then click Deductions.
Click the Child Support Garnishments tab and then click Add Garnishment.
The Add Garnishment window will open.
Select the employee for whom you would like to add a garnishment, and then add a description of the garnishment.
Amount: Designate a dollar amount of the employee's after-tax paycheck that should be deducted. The garnishment order will specify this amount.
Max percent: If the order designates a max percentage of the employees pay check that can be deducted, add it here.
Issue Date: Add the date the order was issued.
Start Date: Add the date on which this garnishment should begin.
Add the State and the External ID (case number) listed on the garnishment notice.
Click Save Deduction. The garnishment will now appear in the garnishment tab and will be deducted from the employee's first paycheck after the garnishment start date.
View Deductions in Payroll
Employee deductions and employer contributions are shown on the last step of the payroll approval flow.
View Employee Post-tax Deductions and Benefits
From your Payroll home screen, open your upcoming payroll and navigate to the last step of the payroll approval flow, Confirm & Submit Payroll.
Click on the Employee Amounts tab.
Add post-tax deductions and benefits to the employee amount table by clicking the cog wheel and toggling on Post-tax Deductions and Benefits.
Hover over the post-tax deduction and benefit amounts to view the names and amounts of the deductions.
View Employer Contributions
From your Payroll home screen, open your upcoming payroll and navigate to the last step of the payroll approval flow, Confirm & Submit Payroll.
Click on the Employer Amounts tab.
Add post-tax benefits to the employer amounts table by clicking the cog wheel and toggling on Benefits.
Hover over the benefit amount to view the names and amount of the benefit(s).
View Total Payroll Deductions
From your Payroll home screen, open your upcoming payroll and navigate to the last step of the payroll approval flow, Confirm & Submit Payroll.
Hover over the Payroll Total view the total pre-tax benefits and post-tax deductions for all employees in the payroll.
