Creating New General Deductions
This topic focuses on the CREDIT UNION, UNITED WAY, HOLIDAY FUND, LOAN, and LOAN AD PYMT deductions. Other general deductions are discussed in detail in topics dedicated to specific deduction types, such as garnishments and bonds.
If you create new general deductions, make sure that they conform to the accumulator structure of the delivered deductions. This is to ensure that the new elements are processed correctly and are included in the appropriate gross-to-net calculations.
Accumulator Structure of General Deductions
This table describes the accumulator structure of general deductions:
|
Accumulator Name |
Contributing Elements |
|---|---|
|
TOTAL DEDUCTIONS N |
All employee deductions contribute to this accumulator. This accumulator subtracts from net pay (NET). |
|
GRN AC FLVYSETUP N |
All employee deductions contribute to this accumulator. Note: This accumulator is used to process federal tax levies. |
|
FWT PRE TAX N |
All pretax deductions contribute to this accumulator. This accumulator reduces the amount of the taxable gross (GROSS). |
|
SWT PRE TAX N |
All pretax deductions contribute to this accumulator. This accumulator reduces the amount of the taxable gross (GROSS). |
Additional Accumulators
The following additional accumulators have been defined for loan and bond deductions:
|
Accumulator Name |
Contributing Elements |
|---|---|
|
LOAN PAYMENT |
LOAN This accumulator contains the total amount paid towards the loan goal amount. |
|
BOND BALANCE |
BOND PURCH |
|
BOND PURCHASED |
BOND PURCH |
|
BOND AMOUNT |
BOND PURCH |
Note: The system no longer processes savings bond deductions because the U.S. Department of the Treasury has stopped issuing paper savings bonds through traditional payroll savings plans.
Note: Additional accumulators are defined for the general deductions. We discuss these accumulators in topics dealing with specific categories of deductions, such as garnishments and repayments.
See Understanding GarnishmentsUnderstanding Repayment Deductions.
Occasionally, you may need to define a deduction that is limited to an annual or monthly goal or is subject to other limit testing.
If you need to define a limit for one of the delivered general deductions or a deduction that you create yourself, follow these steps:
Modify or create the deduction.
Create a monetary variable to store the limit amount.
This limit can apply to the deduction itself or to specific payees (if defined at the payee level).
Define the limit as a supporting element override.
Create an accumulator to store the amount that has been deducted to date.
This deduction can be for any time period.
The deduction defined in step 1 should be the only member of this accumulator.
Create a formula to perform limit processing.
Use the post-process formula LNS FM PYMTS as a model:
If LNS FM TERMINATION = 1 Then 1 >> SET CURR AMT VAL LNS VR GOAL AMT - LOAN PAYMENT - LOAN_ARR >> OVRD CURR AMT VAL Exit Else If LOAN PAYMENT + LOAN_ARR + CURR AMT VAL > LNS VR GOAL AMT Then 1 >> SET CURR AMT VAL LNS VR GOAL AMT - LOAN PAYMENT - LOAN_ARR >> OVRD CURR AMT VAL Exit Endif EndifThis formula, which is associated with the LOAN deduction:
Determines the termination status of the loan recipient.
If the loan recipient has a termination status of 1 (YES), the formula calculates the LOAN deduction as the total loan amount (LNS VR GOAL AMT) minus the amount repaid (LOAN PAYMENT) minus the arrears amount (LOAN ARR).
If the loan recipient's termination status is 0 (NO), the formula sums the amount repaid to date (LOAN PAYMENT), the current amount to be deducted (CURR AMT VAL), and the arrears amount (LOAN ARR).
Compares the sum of the preceding elements to the original amount of the loan (LNS VR GOAL AMT). If the sum exceeds the original loan amount, the formula calculates the deduction (loan repayment) as in the following way:
Original amount of loan (LNS VR GOAL AMT) minus amount repaid to date (LOAN PAYMENT) minus amount in arrears (LOAN ARR).
Enter the formula in the Post Process Formula field on the Calculation page of the Deduction Definition component.
Additional Considerations
When you create a limit testing formula, note that:
You must replace the variable LNS VR GOAL AMT in the delivered formula LNS FM PYMTS with the variable that you create in step 2.
You must replace the accumulator LOAN PAYMENT in the formula LNS FM PYMTS with the accumulator that you create in step 3.
If you allow the deduction you create to go into arrears, the arrears accumulator for your deduction should replace LOAN ARR.
If termination processing is not required for the deduction you create, you should eliminate the termination check included in the formula LNS FM PYMTS.
Some general deductions require special processing when a payee is terminated.
If you create a deduction that requires termination processing, use the LOAN deduction as a model.
The LOAN deduction references the formula LNS FM TERMINATION within the post-process formula LNS FM PAYMENTS to check the termination status of payees.
The formula LNS FM TERMINATION consists of the following actions and conditions:
If TERMINATION DT <= PERIOD END DATE And TERMINATION DT >= PERIOD BEGIN DATE Then
1 >> LNS FM TERMINATION
Else
0 >> LNS FM TERMINATION
EndifBased on the value returned by LNS FM TERMINATION (1[YES] if the payee was terminated in the current period, and 0 [NO] if the payee continues to be active), the system runs the necessary termination processing for the LOAN deduction.
Note: In the formula LNS FM TERMINATION, the termination date is represented by the database system element TERMINATION DT. The pay period begin and end dates are represented by the system computed elements PERIOD BEGIN DATE and PERIOD END DATE, respectively.
If you create deductions that use variables or other supporting elements in their calculations, you can modify or replace the standard supporting element override components to facilitate entering the values of these variables and other elements at either the payee or calender ID override levels.
Note: You can modify the standard supporting element override components by adding or changing field labels, prompt tables, and other page elements to better suit the elements you want to override.
When you create a deduction, you can associate it with as many as six different user fields. You can then assign the deduction to the same payee multiple times in a single segment and track each assignment, as well as any associated arrears, separately by user field set.