Example 2

An employee is paid on the first day of a weekly pay period and has a 30.00 USD deduction that is calculated 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 15.00 USD. After taxes, the amount calculated for the deduction is only 6.00 USD, leaving an arrearage balance of 6.50 USD. The employee receives no additional paychecks during this pay period. The arrearage balance of 6.50 USD is not carried forward into the following pay period, and the record is not written into history.