--- title: "Create a New Payroll Withholding Formula" slug: "create-a-new-payroll-withholding-formula" updated: 2024-09-18T19:45:08Z published: 2024-09-18T19:45:08Z canonical: "www.procaresupport.com/create-a-new-payroll-withholding-formula" --- > ## Documentation Index > Fetch the complete documentation index at: https://www.procaresupport.com/llms.txt > Use this file to discover all available pages before exploring further. # Create a New Payroll Withholding Formula Create a new payroll withholding, known in Procare as a General Withholding, for things like health, medical or dental insurance, employee child care, retirement plans, uniforms, garnishments, city income tax, etc. [Embedded content](https://www.youtube.com/embed/PcaD-bIY_X8) ## Getting There 1. From the *Procare Home* screen click *Configuration > System*. 2. Go to *Accounting Management > Payroll >* dbl-click *Payroll Formulas*. ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_1.png) ## Download Health Insurance and other “General Withholdings” You may [Download & Import Formulas](/procare-desktop/docs/download-general-withholding-formulas-child-care-health-etc) for common *General Withholdings* like health insurance, child care, retirement, garnishments, California SDI, city income tax, etc. or you may create your own formulas (keep reading). ## Create your own withholding (make a new formula) [Embedded content](https://www.youtube.com/embed/X7Zz-VXLMeg) 1. Begin at the *Payroll Formulas* screen and select the *Category* “General” from the list (upper left). ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_2.png) 2. If an existing formula is close to the new one you wish to create, click once on that formula to select it. This may be used as a starting point for your new formula. If you intend to create the new formula from scratch, it doesn’t matter which existing formula is selected. ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_3.png) 1. Click *New Formula* (bottom left). ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_4.png) 1. Answer *Yes* or *No* depending on whether you wish to use the existing formula as a template. ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_5.png) 1. At the *Create New Payroll Formula* screen: 1. The *Category* and *Class Name* will automatically be set to “General”. ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_6.png) 2. Click *Add* to create a new *Subclass*. ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_7.png) 3. Enter a *New Subclass Name*, like “Health” and click *Exit*. The *Subclass* is what you will assign to individual employees and is limited to 15 characters. ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_8.png) 4. Choose whether this new formula will be a *Withholding* – money deducted from a check (yes, in most cases) or a *Credit* – money added to a check (not common). ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_9.png) 5. Type a short abbreviation for the *Group Name* (name that will appear on the pay stub) like “hlth” and click *Next*. **Important!** The *Group Name* may contain letters and numbers only (alphanumeric); no spaces, dashes, punctation symbols, etc., are allowed. 6. Type a longer formula name (like “Health Insurance”) and choose a *Start Date*; for example, this formula may take effect as of Jan. 1st, then click *Finish*. You’ll return to the *Payroll Formulas* screen. ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_10.png) 2. Dbl-click the name of your new formula to edit it. If you chose a *Start Date* in the future, be sure the *Show All In Category* box (upper right), is checked, in order for it to be visible. 3. At the *Payroll Formula Builder* screen, type your formula from scratch or make any necessary changes (if you started with a template). For example, you may wish to withhold an amount that varies per employee: 1. Enter a name for your variable on line 1, using the syntax *Var[nameofvariable]*, like Var[amount]. See Additional Examples. See Additional Examples. ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_11.png) 2. Tap *Enter* (on your keyboard) to move to the next line or click *Save*. 3. When the *Variable Not Defined* message appears, click *Yes* to define the variable. ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_12.png) 4. Enter a *Description* for the variable and choose a *Mask*, like the *Money* format #####.##. ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_13.png) 5. Enter a default *Value* to use for everyone to whom this withholding is assigned or leave it zero. You’ll assign the actual amount to each person on the [Employee Withholdings](/procare-desktop/docs/employee-withholdings) screen. Note: You may enter a *Value* temporarily for testing the formula, but usually you’ll want to set it back to zero when you’re finished testing, so the default for each person will be zero. 6. Click *Save > Exit* to return to the *Payroll Formula Builder *screen. 7. Continuing entering any additional lines for your formula and then click *Save > Exit* to return the list of Payroll Formulas. ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_14.png) 4. If this withholding is exempt from certain taxes (also known as a “pretax” or “pre-taxed” withholding): **Note**: A “pretax” withholding means the amount is deducted from gross pay prior to taxes being calculated. The amount withheld is not taxed. Be sure to check with your tax adviser before marking a withholding as exempt. See: [Pre-Taxed Withholdings](https://www.procaresupport.com/procare-desktop/docs/witholdings#how-do-i-make-a-withholding-pretaxed-or-exempt-from-certain-taxes). 1. Click once on the *Formula Name* to select it. 2. Click the *Exempt From* button (lower left). ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_15.png) 3. Check off any items from which it is exempt then click *Save* > Exit to return to the list of *Payroll Formulas*. ![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Payroll/CreateANewPayrollWithholdingFormula_1202_16.png) 5. When you are finished adding and editing formulas click *Exit* again. ## What’s Next The next step is to [Assign Withholdings to an Employee](/procare-desktop/docs/employee-withholdings).