You can map your payroll system’s deduction codes to each of your employee-paid products in Maxwell. If you’re using the ADP Workforce Now API integration, Maxwell will use these codes to push the deduction amounts to ADP for the correct products. You can also enter deduction codes here so that they’ll appear in cost reports and View Payroll Changes as a reference to use when updating benefits deductions in your payroll system.
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Follow these steps to map deduction codes:
- You'll want to make sure the deduction codes match payroll exactly, so be sure to get the list of deduction codes directly from your payroll system and have it handy.
If your payroll system is ADP Workforce Now, and you need to set up deduction codes in ADP, you should do so using their Validation Tables (select Setup > Tools > Validation Tables > Deductions & Deposits > Deductions).
Log into Maxwell and head to Payroll > Deduction Codes. Now, set up deduction codes on a per product basis. Click on the product and add the default deduction code in first.
If applicable, add any overrides to the default deduction code to have separate deduction codes within the product based on the employee’s state, coverage level, and eligibility group. A few tips:
If you only have one override, it's best to include the override as one deduction code and the default as another deduction code. For example, MED1EE is the deduction code for employee-only coverage, and MED1 is the deduction code for all other coverage.
- If you have multiple overrides, you can name the default deduction code the same as the most popular override. For example, if you have a separate deduction for employee-only coverage, employee+spouse coverage, etc., you can enter each override and then enter the deduction code of employee-only coverage override as the default. This allows the enrollment to always map to a code.
The default view will show products that have current plan years or are effective in the future. View products that were effective in the past by clicking the “Time Period” drop-down.
You likely won’t add a deduction code for every product, as you probably offer some employer-paid benefits. Only add deduction codes to the products that the employee pays for or contributes to.
- If deduction codes are set up at the State level, any employees missing an address will map to the product default code. If you use this override, it’s best practice to run a Demographic Census Report to double check you have an address entered for each employee.
- For voluntary ancillary products which require evidence of insurability (EOI), there are two products set up in Maxwell. Those products will also both display in the deduction code view. Please add the same deduction code to both the voluntary product (non EOI) and the EOI product. An employee will only ever be enrolled in one of these products at any given point in time, but it’s safest to have this set on both.
There are complex deduction code overrides that we cannot support today with this view:
- Override any product by a custom field in Maxwell
- Override a commuter product with a separate deduction code for biking, parking, and transit amounts
- Override a voluntary product with a different deduction code for the insured individual: employee, spouse, or child
We will continue to support these overrides for the Paylocity integration and the ADP Workforce Now and Paychex Flex Enterprise Compatible Payroll Reports. The Maxwell team will set them up on your behalf. The ADP Workforce Now API integration does not support these deduction code setups.
- The Deduction Codes view is available to Master Administrators only.
- Maxwell will continue to collect deduction codes through the implementation process when adding the Paylocity Integration, Paychex Flex Enterprise Compatible Payroll Report, or the ADP Workforce Now Compatible Payroll Report to portals. Also, the Deduction Codes view is not available to employers with these data connections, as editing the view will disrupt the integration/report. Deduction codes set up by Maxwell will still appear on cost reports and in the payroll changes view.
- You can edit or remove a deduction code at any time, just make sure that the same edits are made in your payroll system and that you pause the ADP Workforce Now API integration if that is turned on in your portal. If you have Paylocity Integration, Paychex Flex Enterprise Compatible Payroll Report, or the ADP Workforce Now Compatible Payroll Report and need to update deduction codes, please ask your Advisor to submit this form to the Maxwell team.
- If you offer a new product in Maxwell, you’ll want to come back to the Deduction Codes view to add the code in. Deduction codes will also need to be updated at renewal. They do not carry over to the next plan year’s product, even if the product hasn’t changed.