Reductions to Mandatory Deductions

When the system automatically recalculates an employee's taxes, the recalculation typically results in higher taxes. To avoid a negative payment, the system might place one or more mandatory deductions in arrears, according to the normal processing priorities that you have set up for deductions, benefits, and accruals (DBAs). When a tax-exempt deduction is adjusted or placed in arrears, every deduction with a lower priority has already been adjusted or placed in arrears.