Creating New Repayment Deductions
This topic provides overviews of accumulator structures and termination processing.
If you create new deductions for calculating repayments, make sure that they conform to the accumulator structure that PeopleSoft Global Payroll for United States has defined for the delivered deductions. This is to ensure that the new elements are processed correctly and are included in the appropriate gross-to-net calculations.
Note: All of the delivered general deductions are after-tax deductions. As such, they contribute to the accumulator TOTAL DEDUCTION N that is subtracted from net pay. If you create a pre-tax deduction, you should add it to the SWT PRE TAX N and FWT PRE TAX N accumulators in addition to TOTAL DEDUCTION N. These accumulators reduce the amount of the taxable gross (GROSS).
Accumulator Structure of Repayment Deductions (LOAN)
This table describes the accumulator structure for repayments:
|
Accumulator Name |
Contributing Elements |
|---|---|
|
TOTAL DEDUCTION N |
The LOAN deduction is a member of TOTAL DEDUCTION N. This accumulator is subtracted from net pay (NET). Include any repayment deductions that you create in the TOTAL DEDUCTION N accumulator. |
|
LOAN PAYMENT |
The repayment deduction (LOAN) also contributes to the LOAN PAYMENT accumulator. This accumulator is subtracted from the total amount of the loan to calculate the loan balance (LNS VR BALANCE). |
|
GRN AC FLVYSETUP N |
All employee deductions, including the LOAN and LOAN AD PYMT deductions, contribute to this accumulator. Note: This accumulator is used to process federal tax levies. |
Accumulator Structure of Additional Repayments (LOAN AD PYMT)
Additional loan payments do not subtract from net pay by contributing to the accumulator TOTAL DEDUCTION N; instead, they contribute to the loan payment accumulator LOAN PAYMENT. This accumulator is subtracted from the total amount of the loan to calculate the loan balance (LNS VR BALANCE).
If you define additional nonpayroll repayments, make sure that they have the same accumulator structure as the delivered nonpayroll repayment deduction.
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 conditions and actions:
If TERMINATION DT <= PERIOD END DATE And TERMINATION DT >= PERIOD BEGIN DATE Then
1 >> LNS FM TERMINATION
Else
0 >> LNS FM TERMINATION
Endif
If LNS FM TERMINATION returns a value of 1 (meaning the payee was terminated), the post-process formula calculates the current loan amount as the goal amount (LNS VR GOAL AMT) less the amount paid to date (LOAN PAYMENT) less any outstanding arrears (LOAN ARR). If LNS FM TERMINATION returns a value of 0 (meaning the payee was not terminated), then the amount of the pay period deduction is determined by the deduction schedule defined on the Request Repayments USA page (subject to the limit tests described earlier).
If you create new repayment elements, you can use the formula LNS FM TERMINATION to check the termination status of payees so that any remaining repayment balance is deducted from the final paycheck.
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.