Setting Up Advance Deductions
Access the Advanced DBA Information form.
The data in the Group Limits tab is read-only and is retrieved from the Group Limits table (F069130).
- Calculate for All Employees
Enter a code that specifies whether the DBA is required. Values are:
Y: Yes
N: No
For advance deductions, this field should be set to N (No). When you enter Y (Yes), the system automatically processes the DBA for all qualifying employees. When this field is set to Y, you reduce the information that you must maintain for DBAs that you set up for plans or employees. Information is reduced because you do not need to define the DBA at any level other than the DBA setup level.
To define qualifying employees, complete these fields on the Advanced DBA Information form:
Employee Pay Class - (SALY)
Tax Area - (TARA)
Tax Area Residence (TARR)
Home Company - (HMCO)
When you leave any of these fields blank, the system includes all employees.
Note: The system also uses Tax Area (TARA) and Home Company (HMCO) fields as screening criteria for DBAs that are not required. If either of these two fields contains a value and the Calculate for All Employees option is selected, the system uses the tax areas and home companies to qualify employees for the DBA.- Home Company
Enter the company number where the system generally stores employee records.
- Pay Class (H/S/P)
Enter a code that specifies how an employee is paid. Values are:
H: Hourly
S: Salaried
P: Piecework
- Tax Area (Work)
Enter a code that identifies a geographical location and the tax authorities for an employee work site, including employee and employer statutory requirements. In the Vertex payroll tax calculation software, the tax area code is synonymous with GeoCode. To determine the valid codes for your location, refer to the documentation for the tax calculation software that you are using.
- Tax Area (Residence)
Enter a code which identifies the resident tax area. When you select the Calculate for All Employees check box and enter a Resident Tax Area, the system calculates DBA for all employees, whose Employee Master Residence Tax Area matches. The resident tax area is used solely to trigger the DBA to calculate. The system will continue to store the work tax area on transactions in the DBA Ledger (F0709) table.
- Include in Union Plan
Enter a code that indicates if a DBA is associated with a union or group plan. If you enter Y, the union or group plan, job type, and job step from the Employee Master are transferred into the DBA Detail table (F0609) when the system creates DBA from the Employee DBA Instructions. Adding the union or group plan, job type, and job step to a DBA affects the following:
1: To which timecards the system allocates DBA during the payroll journal process.
2: Historical reporting, which uses the information for selection purposes.
- Amount Rate 2
Use this option to indicate whether you want the system to update the DBA amount in the Amount or Rate - Secondary (AMTS) field of the Employee Pay Instructions table (F06106).
If you select this option, the system updates the amount in the Amount or Rate - Secondary (AMTS) field of the F06106 table.
If you do not select this option, the system updates the amount in the Amount Or Rate (RTAM) field of the F06106 table.
- Declining Balance
Enter an option that indicates whether you want the system to use the amount due at the DBA, group, or employee level to determine whether to use the specified deduction in a payroll cycle.
When you select this option, the system continues deducting the amount in the Amount Due field until the amount is zero. When you select this option, you must also enter a value in the Amount Due field; otherwise, the system considers the deduction to be cleared or inactive.
If you do not select this option, the amount due is not used with the specified deduction.
You must select this options for advance deductions.
- Amount Due
Enter the balance or amount that the employee must pay back to the employer.
- Number of Periods
Enter an option that indicates whether the system uses the Number of Periods field to determine whether to include the DBA in the payroll cycle.
If you select this option, then you must also enter the number of periods in the Number of Deductions field. If you do not enter a value in the Number of Deductions field, then the system considers the DBA as inactive.
Use this option only when you set up a DBA that is not a wage attachment deduction. When you set up a wage attachment DBA, leave this option cleared and use the Employee Wage Attachment Entry form to enter the number of periods for which the deduction is taken.
Select the Number of Periods option to continue the DBA until the amount due is zero. If you do not select the Number of Periods option, the system ignores this function.
- Number of Deductions
Enter the number of periods for which a deduction or benefit should be taken. The system automatically decreases this number by one for each period taken.
You must enter a value in this field if you automate the Number of Periods field.
- Spending Account Type
Enter a value to define which type of spending account the system is using. An example of a spending account type setup might be:
MED: Medical expenses spending account (where the annual amount is accrued on Jan 1 or year begin.)
DCR: Dependent care expenses (where accrual of available funds is on a pay period by pay period basis.)
- Investment Group Codes
Enter a code that indicates the system to use the user defined code from Investments Group Codes (06/type AI) for grouping when balancing accruals for investing in various funds.