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

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

Adjustments for Under-deductions

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

For these, you can click:

image to approve the adjustment, and have the worker 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.
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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 worker. Zenefits will make no changes to their deductions.

Adjustments for Over-deductions

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

For these workers, 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.
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to decline the automatic adjustment. You'll need to manually reimburse them through payroll. Zenefits recommends this method because it is the fastest way to reimburse  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 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 Deduction Adjustments page, there will be an entry for this employee in the Under-Deductions tab:

    The employee'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.

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