Checking the Maximum Yearly Earnings Limit

To set a yearly limit (or ceiling) on an earning element, you can set the limit in LIM VR YTD LIMIT. The ONCALL earning element is set up for this control.

After the system determines the value of ONCALL for the period, the post-process formula LIM FM ONCALL adds the value of the year-to-date accumulator for ONCALL with the current amount and any additional pay. Here is an example:

Accumulator YTD balance = 1000

Current earning amount = 50

Additional earning amount = 0

Yearly limit = 1010

ONCALL_FYTDA + CURR AMT VAL + ADD VR ADDL AMT = New accumulator balance (if paid)

1000 + 50 + 0 = 1050 (new balance)

It then compares that new balance with LIM VR YTD LIMIT. If the balance exceeds the limit, the system calculates by how much it would exceed the limit if paid.

New balance – Limit = Excess amount

1050 − 1010 = 40

It then subtracts the excess amount from the current amount, reducing it to the maximum that can be paid during the current period without exceeding the limit.

(CURR AMT VAL + ADDL AMT VAL) − LIM VR OVER LIMIT = Amount to pay during the period

50 − 40 = 10

You can set other limits for other frequencies by using a formula that compares the total paid with the frequency limits for the earnings.