Example 1

An employee is paid on the first day of a weekly pay period and has a 30.00 USD deduction that is set to calculate once per pay period. Using arrearage method S, a partial or full deduction as needed, the remaining amount is placed in arrears for the current pay period only, and the arrearage balance is not written to history.

The employee's gross pay for the first paycheck of the pay period is 35.00 USD. After taxes, the amount calculated for the deduction is only 17.50 USD, leaving an arrearage balance of 12.50 USD.

On the third day of the pay period, the employee receives gross pay of 180.00 USD. The remaining arrearage balance of 12.50 USD is deducted from this paycheck. The arrearage balance is 0, and the record is not written to history.