1. Administering Payroll for Canada Involuntary Deductions
  2. Protected Pay Rules for Canada

Protected Pay Rules for Canada

Configure provincial protected pay rules for each individual deduction on the involuntary deduction card for the employee. The protected pay amount is calculated based on the rules configured on the involuntary deduction card for the employee.

Use the Enterable Calculation Values on Calculation Cards tab on the Calculation Cards page, to create individual entries and define the rules.

The following rules are predefined in the application. You can use a combination of these rules to meet the requirements defined on the court order.

Protected Pay Amount

The Protected Pay Amount rule is available to configure a flat amount. By defining this value, you define an amount of the employee's pay that is exempt from this deduction. Only pay that exceeds this amount is available for the deduction.

Protected Pay Percentage

The Protected Pay Percentage rule is available to configure a percentage, in addition to an amount. By defining this value, the formula creates a Percent of Protected Pay for the deduction, as given here:
  • If the Disposable Income Calculation Rule is defined as Percentage of Gross Pay, the protected pay is a percentage of the employee’s gross wages.
  • If the Disposable Income Calculation Rule is defined as Percentage of Net Pay, the protected pay is a percentage of the employee’s net pay.
  • If the Disposable Income Calculation Rule is defined as Percentage of Net Pay Less Specific Deductions, the protected pay is a percentage of the employee’s net pay less specific deductions.
    Note: The rate is entered as a percent, for example, .50 for 50%.

Apply Protected Pay Percentage to Income Above Protected Pay Amount Rule

The Apply Protected Pay Percentage to Income Above Protected Pay Amount rule applies the protected pay percentage on the non-exempted portion of the wages to calculate the protected pay amount. The result of the percentage calculation is added to the base amount to calculate the total protected pay. For example, use this rule, if the court order specifies a protected pay exemption amount, plus a percentage of the wages above that exemption.

This is a Yes or No option that specifies how the protected pay calculation applies the percentage.

  • If your selection is Yes, the protected pay percentage is calculated on the disposable income over the protected pay amount, and then added to the protected pay amount, as follows:

    Protected Pay =(Disposable Income - Protected Pay Amount)x Protected Pay% + Protected Pay Amount

  • If your selection is No, the protected pay is the maximum of the protected pay percentage or the protected pay amount. This is the default behavior.

Exemption Rule

The Exemption rule is an exemption amount used to reduce the gross or net wages, prior to applying the deduction percentage in the calculation.

Maximum Protected Pay Amount Per Month

The Maximum Protected Pay Amount Per Month Rule specifies a maximum value for the protected pay amount for each deduction in a month. If there are multiple deductions of the same type, for example two garnishments, this value serves as the maximum for all deductions of the same deduction type. This applies only to the specific deduction you set up.

Maximum Withholding Amount Per Month

The Maximum Withholding Amount Per Month Rule specifies a maximum withholding value for the deduction in a month.

British Columbia FMEP

The British Columbia Family Maintenance Enforcement Program (FMEP) has a prescribed rate for protected pay based on the amount of wages paid per period. This is only for maintenance and support deductions and is addressed by configuring the following rule. This is a Yes or No option that specifies whether the protected pay calculation for British Columbia FMEP is enabled.

The requirements for British Columbia FMEP are preconfigured by Oracle.

  • If your selection is Yes, the British Columbia FMEP protected pay calculations are applied.

  • If your selection is No, the British Columbia FMEP protected pay calculations aren't applied. This is the default behavior.

If other protected pay rules are configured, the British Columbia FMEP protected pay calculations are overridden and the other protected pay rules are used in the calculations.

If multiple Involuntary Deduction components exist, each with a differing Protected Pay Percentage entered, the formula uses the highest percent defined.

Select the rule from the list of values in the Edit Calculation Values within the Involuntary Deductions Calculation Card for the employee. The protected pay amount calculated for the deduction, as well as additional details, are displayed in the run results for the Results and element's shadow elements. Any amounts in arrears observe the protected pay limits.