In addition to taxes, many businesses withhold money from employee paychecks for:
•insurance plans
•retirement programs
•uniforms
•tool accounts
•garnishments
•savings plans
•union dues
•benefit providers
•other payroll obligations
These deductions create:
👉 liabilities
that must later be paid to:
•vendors
•agencies
•benefit providers
•service companies
MLS 2026 provides a dedicated:
👉 Other Payroll Deductions Payment
system for handling these payments automatically.
Starting Payroll Deduction Payments
To process payments for payroll deduction vendors:
👉 select:
•Employee Processing
•Other Payroll Deductions Payment
from the Payroll menu.
The system will then display:
👉 a vendor payment processing form
showing all current payroll deduction obligations.
Current Transactions
The:
👉 Current Transactions
browse list displays:
•companies currently owed money
•payroll deduction balances
•pending liabilities
related to employee payroll deductions.
As you scroll through the vendor list:
👉 detailed information for the highlighted company
is displayed in the upper portion of the screen.
Vendor Information
The system displays important vendor information including:
•Company name
•Address
•Amount deducted from employees for the year
•Amount already paid to the vendor
•Current balance due
•Associated General Ledger account numbers
This provides management with:
•liability tracking
•payment status
•accounting visibility
•year-to-date deduction totals
Payment Amount
The:
👉 amount currently due
is automatically displayed by the system.
Normally:
⚠️ this is the correct amount to pay.
However:
👉 the operator may modify the payment amount if adjustments are required.
Examples might include:
•partial payments
•corrections
•negotiated balances
•payment timing adjustments
Bank Account
Select:
👉 the bank account
from which the payment should be made.
MLS 2026 will:
•create the payment check
•update bank balances
•update accounting entries
using the selected account.
Viewing the Check
Selecting:
👉 View
allows the operator to preview:
•the actual vendor payment check
before final processing.
This is useful for verifying:
•payment amounts
•vendor information
•check formatting
•bank selection
before printing or processing the payment.
Processing the Payment
Once the information has been verified:
👉 select:
•Process
The system then asks for confirmation before continuing.
If:
👉 Yes
is selected:
MLS 2026 will:
•print the check
•update vendor balances
•update payroll deduction totals
•update General Ledger accounts
•update bank balances
•record the payment history
automatically.
Integrated Payroll Accounting
Payroll deduction payments are fully integrated with:
•Payroll
•Banking
•General Ledger accounting
When payments are processed:
👉 liability balances are reduced automatically
and accounting records remain synchronized.
This helps eliminate:
•duplicate bookkeeping
•manual accounting entries
•tracking errors
Why Timely Payments Matter
⚠️ Money withheld from employee paychecks does NOT belong to the business.
These funds must be:
•paid promptly
•tracked accurately
•accounted for carefully
Late payments can create:
•vendor disputes
•employee complaints
•legal issues
•accounting problems
This is especially important for:
•retirement contributions
•insurance premiums
•garnishments
•tax-related deductions
Recommended Vendor Payment Practices
When paying payroll deduction vendors:
•Review balances carefully
•Verify payment amounts
•Confirm deduction totals regularly
•Process payments promptly
•Reconcile liabilities monthly
•Retain payment records for audit purposes
•Coordinate unusual situations with your accountant
Recommended Companion Sections
This section works closely with:
•Other Payroll Deductions
•Payroll Accounting
•Making Tax Payments
•Bank Account Processing
•General Ledger Processing
•Payroll Reports
•Payroll Troubleshooting
Together, these sections provide a complete payroll liability and payroll deduction payment workflow within MLS 2026.