Example 3

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 Q, a partial or full deduction as needed, the amount is placed in arrears and limits are not applied when collecting the arrearage.

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. This arrearage amount is written to history, and the system makes the deduction in the next pay period.