Recommended settings for savings benefit codes

To set up savings benefit codes, select Setup > Payroll > Database Setup > Employee Configuration and click the Deduction/Benefit tab.

Sage HRMS allows for two types of savings contributions: Amount and Percent. The following table shows the recommended settings for each savings benefit code type.

Benefit settings

 

	Amount type	Percent type
Category	Deduction	Deduction
Employee Calculation Method	Flat	Percentage of Base
Employer Calculation Method	Flat	Percentage of Base
Frequency	Use the employee contribution frequency in Sage HRMS	Use the employee contribution frequency in Sage HRMS

 

Note: For the Percent savings contribution type, the percentage will be updated in the Open Payroll process. Because the calculation method is Percentage of Base, you must ensure that the Calculation Base for the earning/deduction code is set up correctly in Payroll. If some earnings are not included in the calculation base, the amount calculated in payroll may not match the amount calculated and updated in the Open Payroll process.