Step 3. Set Up Your Deductions and/or Contributions Cycles (Mandatory)

What is a cycle?

Deduction/Contribution Cycles are designed to allow you to select which employee deductions and/or employer contributions you want to be applied to any particular pay period in a month. You can create up to five cycles if you desire. Whenever you select a deduction/contribution check box for one of the five cycles, that deduction and/or contribution is applied when that particular pay cycle is selected on creation of a new regular run. (Cycles can also be applied to extra runs but the deductions/contributions would only be applied of course to employees who are receiving current pay.) Creating cycles is an efficient way of ensuring those deductions/contributions applicable to that cycle are taken on that pay period where that cycle is selected.

If you always want to apply the same deductions and/or contributions every pay period, then you only need to set up one cycle. If you need to apply certain deductions and/or contributions on the first pay of every month and a different combination on the next pay, then you would set up 2 cycles. Do not forget that there is not always the same number of pay periods every month if the pay frequency is weekly or biweekly.

Why do I have to do this?

You must complete this step if your payroll has any miscellaneous deductions and/or employer contributions other than CPP/QPP, Employment Insurance, QPIP (if applicable) and Federal (and/or Quebec) Tax.

If your payroll only has statutory deductions, skip this step and go on to Topic 3 – Set Up Department Names and ID Fields.