Step 5: Review Employee Earnings and Deductions
Complete this step AFTER the last 2025 payroll and BEFORE the first 2026 payroll.
Review Deduction Maximums
Navigation: MAINTAIN menu > Deduction/Benefit Master
- Review all deductions that have a maximum (for example, Local Service Tax).
- For deductions with the same yearly maximum, check Retain Max at Year End so YTD totals reset but the maximum stays the same.
- A maximum of 999999.99 means no real maximum.
Examples:- Local Service Tax – max $52 per year: Check Retain Max at Year End so YTD resets and the max stays $52.
- Lifetime maximum deductions (like loans): Do not check Retain Max at Year End. When the year closes, the employee’s maximum is reduced by what was taken that year.
- Horizon recommends for deductions that should not reduce at year end, check Retain Max at Year End.
Update Deduction/Benefit Tables
- Update any deductions/benefits that change for 2026.
- After updating the master record, update all employees who use that deduction using Deduction or Expense for All Employees.
Remove Old Employee Deductions
Clean up unused deduction codes from employee records. Do not delete codes from Deduction/Benefit Master. Old reports need them.
Navigation: MAINTAIN menu > Employee Master
- Select an employee.
- Go to tab 6 – Deductions/Expenses.
- Highlight the deduction that will no longer be used.
- Click in the DG field, then click the Delete button.
- When prompted “Delete this Line?”, click YES.
- If you see “Cannot Delete Deduction with YTD Totals”, the deduction was used this year; wait until next year.
- Repeat as needed for each employee.
Review Employee Pay/Employee Master
Before the first 2026 payroll, review each employee for:
• Raises
• Rate changes
• New benefits
See Also:
12/2025