How do I know if I should approve or decline Deduction Adjustments for employees?

Zenefits automatically calculates adjustment plans for employees who were under- or over-deducted for their benefits. Click Adjustments on the Deductions page to use the Adjustments tool and manage over- and under-deducted employees by approving or declining Zenefits' suggested plans.

Adjustments for Under-deducted Employees

Under-deducted employees were not deducted enough to cover the cost of their benefits.

For these employees, click:

image to approve the adjustment, and have the employee to pay back the difference. Zenefits will automatically increase their deductions (as catch-ups) over a specified number of pay periods, then return them to normal deductions. Read an explanation of how Zenefits calculates catch-ups.

to decline the adjustment. By this method, you can either manually make adjustments in payroll, or "forgive" the amount entirely by paying the difference on behalf of the employee. Zenefits will make no changes to the employee's deductions.

Adjustments for Over-deducted Employees

Over-deducted employees paid more than the cost of their benefits, and should receive the difference as a reimbursement.

For these employees, click:

image to approve an automatic adjustment. Zenefits will automatically decrease their deductions over a specified number of pay periods, then return them to normal deductions. Read an explanation of these adjustment plans.

to decline the automatic adjustment. You'll need to manually reimburse the employee through payroll. Zenefits recommends this method because it is the fastest way to reimburse the employee up-front.

Making Decisions

Your decisions to approve or decline an adjustment only take effect once you click Apply Decisions. Prior to that, you can undo each decision, or Reset All to undo all pending decisions.

  • Once you click Apply Decisions, Zenefits will push these changes to synced payroll, Payroll Reports, or Zenefits Payroll for the next check date.
  • Zenefits will not make changes to the employee's current (normal) deductions until you make a decision on any pending adjustments.

Example Adjustment Scenario

Let's walk through an example:

  • An employee's normal per-paycheck deduction for Medical is $100. However, Zenefits determines that this employee was under-deducted by $150.
  • On the Adjustments page, there will be an entry for this employee in the Under-Deductions tab:

    Employee A's medical deduction was under-deducted by $150.

    Adjust deduction from $100 to $200 for 1 pay period, then $150 for 1 pay period?

If the adjustment is:

  • approved, Zenefits will push $200 to payroll (or the Deductions report) for Medical in the employee's next paycheck, and $150 in the following paycheck, and back to $100 in the paycheck after that.
  • declined, Zenefits will continue to push $100 for this employee, and add an Adjustment item to the employee's historical deductions.

Deduction Adjustment Block Period

We are not able to sync deduction information to payroll during the block period. If a company is in this block period, any pending deduction adjustments an admin may have seen with their Adjustment tool will be removed until the block period has ended. There is no need to panic. This is how the product is supposed to work.

What is the block period?
  • The block period is 2 days before the check date and the the actual check date.
For example, if the next check date for a company is the 15th, the pending adjustments will disappear from 13th-15th and reappear on the 16th.

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