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welcome to our tutorial on how to set up payroll deductions in your sage business works program this short presentation will show you how to set up payroll deductions how to assign the deductions to your employees and how to enter the deduction amounts in your time card entries deductions are used for recording fringe benefits such as medical insurance retirement or pension plan contributions union dues workers compensation or local taxes regular taxes such as federal and state withholding do not need to be set up if you have a deduction that is part employee and part employer contribution you must set up as two separate deductions and assign both deduction ids to the employee and maintain employees a maximum combination of 30 deductions and or other pays can be assigned to an employee important be sure to consult the internal revenue service or your tax advisor when you set up deductions many times there are special requirements for how they appear on the w-2 form and these rules chan