Using Payback Deduction and Earnings Codes on the Paysheet

After you set up the Earnings and Deduction tables to reflect the salary advance earnings and advance payback deduction codes, the first employee to take advantage of the advance program is Terry, who requests a salary advance of 500 USD. Here's how you use the payback deduction and earnings codes that you set up to process Terry's advance:

1. During the first pay period, update Terry's paysheet to include other earnings of 500 USD, with the ADV earnings code.

   The Pay Confirmation process automatically creates a payback arrears balance of 500 USD under the ADVPB deduction code because you linked that payback deduction code to the ADV earnings code.

2. In subsequent pay periods, the system automatically tries to recover any outstanding arrears based on the ADVPB deduction code, which you defined with a flat maximum payback amount of 50 USD.

   In Terry's case, the system takes the deduction amount of 50 USD as arrears payback in the second pay period, and reduces the payback arrears balance to 450 USD. It continues to take 50 USD each pay period until the arrears balance is zero.