Modifying and Updating Delivered General Deductions

Page Name

Definition Name

Usage

Calculation Page

GP_ERN_DED_CALC

Associate a generation control element with a deduction.

Modify the frequency of a deduction at the element definition level.

Element Detail Page

GP_ED_PYE_DTL_SEC

Modify the frequency of a deduction at the payee level.

Associate a generation control element with a deduction at the payee level.

Generation Control Page

GP_CALENDAR3

Associate a calendar with a frequency factor for generation control.

Define Deduction Recipients Page

RECIPIENT

Define general and individual recipients.

Recipient Address Page

RECIPIENT_ADR_SP

Define recipient address information.

Recipient Deposit Schedule Page

RECIPIENT_DEP_INFO

Select a recipient's deposit schedule.

Recipient Page

GP_RCP_DED

Select a general recipient for a deduction.

This topic discusses:

  • Deduction schedules.

  • Generation controls for biweekly and semimonthly pay periods.

  • Generation controls for weekly pay periods.

  • Defining deductions with multiple and single frequencies.

  • Using generation control when the frequency is per calendar period frequency

  • Using generation control with a specified frequency.

  • Processing a deduction in the first segment.

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 types of deductions such as garnishments and bonds.

Deduction Schedules

The general deductions are delivered with a frequency option of Use Calendar Period Frequency. This means that the deduction amount that the system calculates for an eligible payee is the same regardless of the pay period frequency. For example, suppose that you define a deduction as a flat amount of 100.00 USD with a frequency option of Use Calendar Period Frequency. If you process payrolls on a weekly basis, the system deducts 100.00 USD per week for eligible payees. If you process payrolls monthly, the system deducts the same amount each month.

All general deductions delivered with PeopleSoft Global Payroll for United States are set up to be processed every pay period, in the first segment only. If you don't want the system to process a deduction each pay period, you can use one of several delivered generation controls, or define your own generation control frequencies modeled on the delivered generation control elements.

Generation Controls for Biweekly and Semimonthly Pay Periods

This table lists the generation control elements delivered for biweekly and semimonthly pay calendars and the associated frequency factors:

Generation Control Element

Frequency Factor

Description

GEN GC WEEK 1AND2

FRST ONLY (12)

Schedules the deduction during the first pay period in the month.

GEN GC WEEK 3AND4

SCND ONLY (12)

Schedules the deduction during the second pay period in the month.

Note: You can associate these generation control elements with a deduction at the element level, or assign them to specific payees using the Element Assignments by Payee component.

Generation Controls for Weekly Pay Periods

This table lists the generation control elements delivered for weekly pay calendars and the associated frequency factors:

Generation Control Element

Frequency Factor

Description

GEN GC WEEK 1AND2

FRST SCND (24)

Schedules the deduction during the first and second pay periods in the month.

GEN GC WEEK 3AND4

THRD FRTH (24)

Schedules the deduction during the third and fourth pay periods in the month.

Note: You can associate these generation control elements with a deduction at the element level, or assign them to specific payees using the Element Assignments by Payee component.

Defining Deductions with Multiple and Single Frequencies

When a deduction has multiple frequencies, you may need to create generation control elements with more than one associated frequency factor. For example, if you define a deduction that can be taken in the first and second weeks of a weekly pay calendar (frequency factor = 24) or in the first period of a biweekly pay calendar (frequency factor = 12), then define a generation control element containing both of the required frequencies (as in the case of the delivered generation control element GEN GC WEEK 1AND2). If you process your deductions on a single frequency, you can define generation control elements with a single associated frequency factor.

Using Generation Control When the Frequency Is Per Calendar Period Frequency

When the frequency of a deduction is Per Calendar Period Frequency, the system does not annualize or deannualize amounts to account for different pay period frequencies. This is true even when the deduction is associated with a generation control element. For example, assume that you assign the CREDIT UNION deduction to a payee for 100 USD and that you process payees weekly. If you use the generation control element GEN GC WEEK 1AND2 with a frequency factor of FRST SCND to schedule this deduction in the first and second week of each month, the amount taken each pay period does not change, but the frequency of the deduction does (100 USD is taken only twice a month, rather than every week).

Using Generation Control with a Specified Frequency

Normally, when you define a deduction with a specific frequency such as monthly or weekly, the system annualizes the amount of the deduction using one of the frequencies defined in the HR Frequency table, and deannualizes it using the pay period frequency.

For example, assume that you process payees weekly, and that you define a deduction of 100 USD per month (frequency = monthly). During processing, the system annualizes this amount to 1200 USD (100 × 12 [monthly frequency factor]), and then deannualizes it into the payroll processing frequency (frequency = 52). The amount paid each period is 1200 ÷ 52 = 23.076923.

However, when you use a generation control element with an associated frequency factor, the system deannualizes the deduction amount using the frequency associated with the generation control element, rather than the pay period frequency. For example, assume that you use the delivered generation control element GEN GC WEEK 1AND2 with a frequency factor of FRST SCND to schedule the UNITED WAY deduction in the first and the second week of each month. The frequency factor associated with this generation control element is 24 (24 separate deductions occur per year if the UNITED WAY deduction is processed in the first and second weeks). If the deduction amount is 100 USD per month (frequency factor = 12), the system calculates the per period amount in the following way: 1200 USD (100 × 12) ÷ 24 = 50.

Note: When you define a deduction with a specific frequency, PeopleSoft Global Payroll for United States uses this frequency to annualize the deduction amount. And it uses either pay period frequencies or generation control frequencies to deannualize this amount: if no generation control frequency exists, it uses the pay period frequency; if the element has an associated generation control frequency, it uses the generation control frequency instead.

Note: Although the frequency of the general deductions is Per Calendar Period Frequency, you can modify this definition on the element definition page or at the payee level. The system will then annualize and deannualize the deduction based on the selected frequency option and the generation control element.

Processing a Deduction in the First Segment

PeopleSoft Global Payroll for United States delivers an additional generation control element that can be used to manage deduction processing.

Generation Control Element

Description

GP APPLY 1ST SEG

Use this generation control element if you want a deduction to be applied to the first segment in a period.

The CREDIT UNION and UNITED WAY deductions are delivered with deduction recipients identified on the Recipient page of the deduction definition component. If you want to complete, modify, or delete the recipient definitions for these deductions, use the recipient definition pages in Global Payroll.

To modify deduction schedules:

  1. Associate the appropriate generation control element with the deduction at the element or payee level.

    For example, associate the delivered generation control GEN GC WEEK 1AND2 with the credit union deduction (CREDIT UNION) on the Calculation page of the deduction definition component, or with a specific payee using the Element Assignments by Payee component.

  2. Associate the calendar you are processing with the frequency factor of the generation control element you selected.

    Do this on the Generation Control page of the Calendar component.

    For example, if you process payees weekly and you schedule a credit union deduction to be taken in the first and second week of each month (using the generation control element GEN GC WEEK 1AND2), associate the first and second calendar you process every month with the frequency factor FRST SCND. The generation control element triggers the deduction when the frequency factor associated with the calendar is identical to the frequency factor of the deduction.

    See Defining Generation Control Elements and Understanding Calendars.

To modify deduction recipients:

  1. Define general and individual recipients on the Define Deduction Recipients page.

  2. Define recipients' address information on the Recipient Address page.

  3. Select recipients' deposit schedule on the Recipient Deposit Schedule page.

  4. Link general recipients to a deduction on the Recipient page of the deduction definition component.