Voluntary Deductions Included in the Disposable Income Rule

The disposable income rule "Net pay less specific deductions” allows voluntary deductions to reduce the disposable income. This is legislatively required in some jurisdictions for the following voluntary deduction elements.

• Professional Fees
• Union Dues
• Health Insurance Premiums
• Disability Insurance Premiums

To reduce disposable income by the voluntary deduction amount, change the processing priority of the voluntary deduction element as given here.

• Change the priority of the base element, and all other shadow elements, for the voluntary deduction to 7000.
• Change the priority of the retroactive shadow element to 6999

The voluntary deduction elements are now processed before the involuntary deduction elements, when disposable income is calculated.

Follow these steps to update the processing priority of the element:

1. Navigate to My Client Groups > Payroll > Elements.
2. Search for and select the voluntary deduction element.
3. Click Edit > Correct.
4. Update the Priority as given here:
   • For the base and shadow elements, enter 7000.
   • For the retroactive element, enter 6999.

5. Click Save and click OK for the warning that is issued.

6. Click Submit.

Repeat this process for each shadow and retroactive element.

Note: Update the processing priority for any voluntary deduction that impacts disposable income for garnishments. If the voluntary deduction shouldn't impact disposable income, don’t update the processing priority.