Deductions

You use deduction elements to define different types of deductions for a payee. Deductions can be voluntary, such as those for retirement plans, or statutory, such as taxes and garnishments.

You can define the following four types of calculation rules for deduction elements:

• Amount

• Base * Percent

• Unit * Rate

• Unit * Rate * Percent

In addition to the rate, unit, base, and percent components, the system creates three other components for deductions:

• Amount not taken

• Payback amount

• Add to arrears

The system also creates an arrears balance accumulator to keep track of a payee's arrears. An arrears is a way to store deductions that the system cannot take from a current pay run because of insufficient net pay.