Employee Deductions
To calculate employee contributions to superannuation funds, you can set up as many deductions as necessary. You can set them up to calculate flat amounts or percentages based on employee earnings. After you set up the deductions, you assign them to employees using either the JD Edwards EnterpriseOne Benefits system or by manually attaching the deduction to the employee using the Employee DBA Instructions. You must also add the DBA code for the deduction to UDC table (07/FD).
You then set up funds and assign employee allocation percentages. When you process payroll for the employee, the system calculates the amount that the employee wants to contribute to superannuation funds using these steps:
The system calculates the amount of the deduction that you assigned to the employee.
The system verifies that the PDBA code for that deduction exists in UDC 07/FD.
If the code exists in the table, the system continues to the next step. If the code does not exist in the table, the system deducts the amount from the employee's pay but does not allocate the amount across all of the funds in which the employee is currently enrolled.
The system retrieves the employee's current fund allocation percentages from the F07855 table.
The system allocates the amount of the deduction to each fund according to the allocation percentage associated with each current fund.
For example, if the deduction amount is 100 AUD and the employee is currently enrolled in two funds, each with an allocation percentage of 50, the system allocates 50 AUD to each fund.
Be aware of these issues when setting up employee deductions and fund allocations:
You can assign only one superannuation deduction to each employee, but you can assign multiple employee-paid funds to the employee. If you assign multiple deductions to an employee, the system cannot correctly allocate deduction amounts across all funds in which the employee is currently enrolled.
Also, if an employee's allocation percentage totals more than 100, the system prorates the amount of the deduction across all funds in which the employee is currently enrolled. For example, if overlapping date ranges are accidentally entered for employee allocations, an employee might be set up to allocate 50 percent to Fund 10, 50 percent to Fund 20, and 50 percent to Fund 30. In this situation, the system allocates one third of the calculated amount to each fund. The system also produces a payroll error message notifying the payroll administrator that the allocation percentage for the employee is not 100. You must manually correct the issue.