Setting Up Limits for Tax-Deferred Compensation Deductions

Access the Advanced DBA Information form.

Limit Method

Enter a code that indicates the history file that the system uses for DBA limits. Values are:

Blank (default): The system applies monthly, quarterly and annual limits to calendar month history.

The system stores fiscal and anniversary history by pay period ending date. The system updates the Calender Month DBA Summary History File (F06145).

1: Applies monthly, quarterly, and annual limits to payroll month history.

Use this method for retirement plans, such as 401(k) or Registered Retirement Savings Plan (RRSP). The system stores fiscal and anniversary history by check date. The system updates the Employee Transaction History Summary table (F06146).

2: Applies monthly and quarterly limits to calendar month history and updates the Calender Month DBA Summary History file.

The system applies annual limits to fiscal and anniversary history. Fiscal and anniversary history, by pay period ending date, are saved in the Fiscal and Anniversary Year History table (F06147).

Calendar Month Method

Enter a value that determines how transition months are stored for calendar month history. Transition months occur when the pay period crosses into another month. Values are:

Blank: If timecards exist for both months, DBAs are prorated to the pay period ending date and the last day of the previous month. This is the default value.

1: DBAs are allocated to the pay period ending date.

Group Limit Code

Enter a code that is common to all deduction or benefits that share the same limitations, such as pay period currency amount, percentage, monthly, and annual. The system takes these limits from the first deduction encountered in the group and withholds for all deductions until the limit is reached for the aggregate.

DBA For Prior Limit

Enter a code that identifies another DBA whose limit must be met first before this DBA calculates.

For example, deduction 1400 has an annual limit of 2,000.00 USD. After this limit is met, deduction 1500 begins calculation and withholding.

The DBA number of the predecessor must be lower than the successor's number.

Pay Period Limit

Enter the maximum amount that can be withheld or accrued in a pay period for a deduction, benefit, or accrual. This amount is expressed in dollars for deductions and benefits. For accruals, this amount is expressed in hours.

Monthly Limit

Enter the maximum amount that can be withheld or accrued in a month for a deduction, benefit, or accrual. This amount is expressed in dollars for deductions and benefits. For accruals, this amount is expressed in hours.

Quarterly Limit

Enter the maximum amount that can be withheld or accrued in a calendar quarter for a deduction, benefit, or accrual. This amount is expressed in dollars for deductions and benefits. For accruals, this amount is expressed in hours.

Annual Limit 1

Displays the maximum amount that can be withheld or accrued in a year for a deduction, benefit, or accrual.

This amount is expressed in dollars for deductions and benefits. For accruals, this amount is expressed in hours.

Annual Limit 2

Displays the maximum amount that can be withheld or accrued in a year for a deduction, benefit, or accrual.

This amount is expressed in dollars for deductions and benefits. For accruals, this amount is expressed in hours.

Minimum Percent

Enter the minimum percentage amount that can be specified for the DBA.

The amount of the transaction can never be less than the minimum percentage amount.

Maximum Percent

Enter the maximum percentage of pay that the calculated deduction or benefit amount cannot exceed.

Minimum Hours

Enter the minimum number of hours worked or pieces produced for a DBA to be calculated.

If the number of hours worked or pieces produced is less than this amount, the system assumes zero hours when it calculates the DBA. The system uses this field only if the method of calculation is H or I.

Maximum Hours

Enter the maximum number of hours worked or pieces produced that a DBA can be based on.

If the actual hours worked or pieces produced are greater than the specified maximum, the system bases the calculation on the maximum. The system uses this field only if the method of calculation is H or I.