Pre-Payroll Calculations

During pre-payroll processing, the system performs these steps to recalculate the employee's taxes:

1. Places a pretax deduction entirely in arrears or fully reduces it (depending on the arrearage rule) if it cannot be fully deducted.

   The system does not partially place in arrears or reduce a pretax deduction to avoid negative pay. Two examples are:

   • A pretax deduction has an arrearage rule Q (place the full or partial amount in arrears as needed and do not apply the limits when collecting).

     If the system cannot take the full amount of the pretax deduction, it uses rule G instead, which places the entire amount in arrears.

   • A pretax deduction has an arrearage rule P (partially or fully reduce the deduction as needed, but do not collect the amount in the future).

     If the system cannot take the full amount of the pretax deduction, it uses rule F instead, taking none of the deduction. In this case, the system does not place the amount in arrears, nor does it hold the amount over to be collected in the future.

2. Marks the deduction as a one-time override with a zero amount.

   This prevents the deduction from being calculated for this pay period only.

3. Updates the Pre-Payroll Error File table (F07355).

   This table lists each employee whose taxes were recalculated and shows which deductions were placed in arrears and which deductions were reduced or omitted.