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How to Set Up an Icon Deduction Code

Updated this week

A payroll deduction code is what allows contributions to the Icon Savings Plan to be collected automatically each pay period. You will set up the deduction code now, and you apply it to individual enrolled employees when they populate for approval in your Icon dashboard based on their individual contribution amounts.

Step 1: Create a New Deduction Code

  1. Log in to your payroll provider’s administrator dashboard.

  2. Navigate to the area where deductions or custom benefits are managed. This may be:

    • In employee records

    • Under benefits or deductions setup

    • In a garnishments section

    • Or something your payroll representative must configure

  3. Choose to add a new deduction.

  4. Select a category like:

    • Other

    • Miscellaneous

    • Custom After-Tax Deduction

  5. Name the deduction something clearly identifiable, such as “Icon Savings” or “IRA – Icon”.

  6. Configure the deduction as a fixed dollar amount, not a percentage.

  7. Do not enable any W2 boxes (if options appear for W2 reporting, leave them blank or unchecked).

  8. Save the deduction.

Step 2: Apply the Deduction to Each Enrolled Employee

  1. Navigate to the employee’s profile.

  2. Select the Icon Savings deduction code you created.

  3. Enter the exact dollar amount the employee elected to contribute.

  4. Set a start date or first payroll period.

  5. Save and repeat for other employees as needed.

Requirements for the Payroll Deduction

  • Must be outside any Retirement Plan category.

    • Do not use 401(k), 403(b), or Simple IRA categories.

  • Deduction must be a dollar amount, not a percentage.

  • Should not appear on the employee’s W2

  • No annual contribution limit needs to be set—Icon will track this.

  • If an employee updates their contribution in Icon, you must manually update the amount in your payroll system.

Helpful Hints

  • If you're unsure where to enter the deduction, look for:

    • “Custom Deduction”

    • “Miscellaneous After-Tax”

    • “Voluntary Deduction”

  • If your payroll provider requires setup by a rep or accountant, share the following:

“We need to set up a fixed, after-tax deduction for a payroll-deducted IRA (Icon). It should not be categorized under a retirement plan type like 401(k) or Simple IRA. This deduction should not appear on the employee’s W2.”

Instructions Based on Provider

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