Setting Up the Industrial Insurance Deduction

Access the Basic DBA Information form.

To set up the Industrial Insurance deduction:

1. Complete the DBA Code and Paystub Text fields.

2. Enter I in the Print Method field to print this deduction on employee payments.

3. Enter G in the Source of Calculation field to specify that the deduction should calculate for the current period.

4. Enter 7 in the Method of Calculation field.

5. Enter Y in each of the Pay Period of the Month fields to ensure that the deduction calculates during each payroll cycle, and then click OK.

6. On the General Accounting/Arrearage Information form, complete any of the optional fields and then click OK.

7. On the Basis of Calculation form, click OK.

8. On the Advanced DBA Information form, select the Calculate for All Emp option.

9. To specify that the deduction must calculate for all employees who work in the state of Washington, enter 48 in the Tax Area (Work) field, and then click OK.

   • Paystub Text

     Enter the text that you want the system to print on the employee's paystub. If you are using the JD Edwards EnterpriseOne Time and Labor system, the system does not create payments. However, this field is required to complete the form. Generally, you enter a description of the PDBA.

   • Print Method

     Enter a code that identifies whether the PDBA is to be printed on the paystub or whether it is to be printed on a payment that is separate from other PDBAs.

     Values for pay types and payroll taxes include:

     Y: Print on paystub (default).

     S: Print separate payment (one item per payment).

     C: Print separate payment (C types combined).

     N: Do not print on paystub.

     Values for DBAs include:

     Y: Print as total deductions (default).

     S: Print separate payment (one item per payment).

     C: Print separate payment (include detail).

     N: Do not print on paystub.

     I: Print individual DBA codes.

     T: Print by DBA print group.

     The separate payment feature is not available for any payroll taxes being withheld from the employee's payment.

   • Source of Calculation

     Enter a user-defined code (07/DB) that specifies the basis of a deduction, benefit, or accrual. When the system calculates the gross amount for disposable net wages, it does not use the basis of calculation. The gross amount includes all earnings that have a positive effect on the gross and net payment. For wage attachments use one of these codes:

     1-8 Garnishment, tax levy, wage assignment (child support and maintenance).

     R: Loan, interest

     0: Fees

   • Method of Calculation

     Enter a user-defined code (07/DM) that specifies the method that the system uses to perform certain calculations. For example, the system uses a method of calculation to calculate deductions, benefits, and accruals (DBAs) and workers' compensation insurance.

     The method values are pre set. If you use methods 0 - 6, 8,9, or G, you must also enter a value in the Table Code field.

     For wage attachments use one of these methods:

     C: Wage assignment (child support and maintenance).

     G: Garnishment.

     K: Loan.

     L: Tax levy.

     A: Fees

     %: Interest

   • Pay Period of the Month:

     Enter a code designating the pay period in which the system calculates the DBA/auto deposit. Valid codes are:

     Blank: Continue to look for a code at the lower level. The system searches for DBA/auto deposit rules first at the employee level, then at the group level, and finally at the DBA master level. If the field is blank at all levels, the system does not calculate the DBA/auto deposit in that period.

     Y: Take the DBA/auto deposit during the current period.

     N: Do not take the DBA/auto deposit during the current period.

     *: Take the DBA/auto deposit only during the first pay period of each month that the employee works based on the ending date of this month's pay period.

     M: Applies only to benefits based on gross hours or dollars. An M in the fifth field only tells the system to calculate the benefit during the special timecard post. An M implies a Yes for a weekly withholding frequency.

   • Effect on GL (effect on general ledger)

     Enter a code that indicates whether you want journal entries passed from payroll to the general ledger and the method you want to use. Values are:

     N: Pass dollars only to the general ledger.

     M: Do not pass dollars or hours to the general ledger. This code enables an accrual to be tracked in employee payroll history and the dollars to be omitted from the general ledger.

   • Generate A/P Voucher (generate accounts payable voucher)

     Enter a code that determines whether the system should generate a voucher for the DBA, tax, or wage attachment during the final update phase of the payroll processing cycle. Values are:

     N: No, do not generate a voucher.

     Y: Yes, generate a voucher.

   • Payee

     Enter the address book number of the investment program.

   • Order To Adjust Ded (order to adjust deductions)

     Enter the order in which deductions should be adjusted. If an employee's gross pay does not cover deductions, a code in this field tells the system in what order it should satisfy deductions. Valid codes are 0001 through 9999. The system starts with the highest code. For example, 9999 is deducted before 0001.

   • When To Adjust Ded (when to adjust deductions)

     Enter a code that specifies when the system adjusts, or backs an amount out of, deductions. Values are:

     0: Adjust deductions marked with 0 before payroll taxes.

     1: Adjust deductions marked with 0, then adjust those marked with 1 before payroll taxes.

     2: Adjust payroll taxes before the deductions marked with 2. (This value is for future use.)

   • Calculate for all Emp (calculate for all employees)

     Enter a code that specifies whether the DBA is required. Values are:

     Y: The DBA is required.

     N: The DBA is not required.

     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)

     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.

   • 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 the location, refer to the documentation for the tax calculation software that you are using.