How to Set Up IPERS Deductions (Iowa)

In the Deductions master file, Iowa sites can set up different IPERS rates for different wages, i.e. for an employee who is both a hospital employee and an ambulance employee. Separate deductions will need to be set up for each IPERS classification rate. These rates are associated with different departments within the hospital. The Include/Exclude Departments button in the Deductions window allows you to indicate the locations/departments from which you want to include or exclude wages in the base wage calculation for the deduction. See below for instructions on how to set up and apply the IPERS deductions correctly.

STEP A: Set up IPERS deduction codes

NOTE: Two IPERS deductions are needed if the Hospital has employees that work in an ambulance department and need to contribute at the ambulance rate.  

  1. In the Code field (in the Deductions master file), enter a code for the deduction you are setting up, (i.e. IPER1, IPER2).

  2. In the Unit field, select 9-Deferred Federal/State (401k).

  3. In the Method field, select 2-Flat amount plus percentage of gross wages.

  4. Enter the remaining information in the required fields and in the optional fields as needed.

  5. Click the Exclude Wage Codes button if you want to indicate which wages (wage codes) should be excluded from the calculation of 9 - Deferred Federal/State (401k) deductions when the amount is calculated using the 2 - Flat amount plus percentage of gross wages method. The Wage Exclusions dialog box is displayed. Click the Search button to select the valid wage code(s) that you want to exclude from the calculation, and click Save to close the dialog box.

  6. Click the Include/Exclude Departments button located at the bottom of the screen to open the Wage Exceptions window. This button is enabled only if the Unit field is set to 9-Deferred Federal/State (401k) and allows you to indicate the locations/departments from which you want to include or exclude wages in the base wage calculation for this deduction. In the window, use the Search buttons in the Location and Department fields to select the appropriate location(s) and department(s). NOTE: All selections must be set to either Include or all to Exclude for this deduction.

  7. Click Save to save the Wage Exceptions window and return to the Add Deduction window.

  8. Click Save to save the deduction code.

STEP B: Set up Employer Contributions and Benefits (ECB) codes

Set up an ECB code for each deduction code. The ECB code must match the deduction code.

  1. Go to Payroll > Master Files > Employer Contributions and Benefits.

  2. In the Code field, enter the ECB code to match exactly to the deduction code.

  3. In the Unit field, select 9-401k, 403b, 457 Match.

  4. In the Method field, select one of the percentage methods.

  5. Enter the remaining information in the required fields and in the optional fields as needed.

  6. Click the Exclude Wage Codes button if you want to indicate which wages (wage codes) should be excluded from the calculation of 9 - 401k, 403b, 457 Match deductions when the ECB amount is a percent of wages.

  7. Click Save to save the ECB code. Be sure to set up an ECB code for each deduction code and that they match exactly to the corresponding deduction code.

STEP C: Add/Edit Employee Records

Add the IPERS deduction codes to the Iowa employee records.

  1. Click the Employees button on the main window of the Payroll module.

  2. Locate and select the employee record that you want to add or edit.

  3. Click the Deductions tab and enter the IPERS deduction codes in the grid shown.

  4. Click the ECB tab and enter the IPERS ECB codes in the grid shown.

  5. Click Save to save the employee record.