Create a Pretax Deductions Element

This example demonstrates how you can use the element template and create a pretax deductions element for Canada. Use the Elements task under Payroll to create the element.

Creating a Pretax deductions element includes:

• Creating the pretax deductions element

• Creating the element eligibility record

How to Create a Pretax Deductions Element

To create a deductions element:

1. Search and select the Elements task.

2. Click Create.

3. Enter these details.

   Field	Value
   Legislative Data Group	Select an appropriate LDG.
   Primary Classification	Pretax Deductions
   Secondary Classification	Select a value, for example, Union Dues.

4. Click Continue.

5. On the Basic Information page, complete these fields.

   Field	Value
   Name	Enter a name, example: Pretax Deductions1
   Reporting Name	The name you enter is displayed on reports for this deduction payroll element.
   Effective Date	Enter an early date so that the payroll element is available for use immediately.
   Input Currency	Canadian Dollar
   Should every person eligible for the element automatically receive it?	No
   What's the earliest entry date for this element?	First Standard Earning Date
   What's the latest entry date for this element?	Last Standard Earning Date Note: An element's latest entry date determines how element entries process after a person is terminated or transferred to another payroll.
   At which employment level should this element be attached?	Payroll Relationship Level Note: Select Payroll Relationship Level, if you want to hold the arrears in a balance so that the payroll run can deduct the pretax amount in a subsequent payroll period. The arrears are held at the Payroll Relationship level.
   What should happen if there are insufficient funds to cover the deduction?	Take a partial deduction, place remaining in arrears.
   Does the element recur each payroll period, or does it require explicit entry?	Recurring
   Process the element only once in each payroll period?	Yes
   Can a person have more than one entry of the element in a payroll period?	No

6. Click Next. On the Additional Details page, respond to these questions, as shown in this table.

   Field	Value
   What is the calculation rule?	Fixed amount deduction.
   Is this element subject to proration?	No
   Is this element subject to retroactive changes?	No
   Is this element subject to iterative processing?	Yes Note: This question is only presented for pretax elements when the element isn't subject to proration.
   Processing Stop when the Total is reached?	Yes
   What is the Registration Number for this element?	Specify the Registration Number used for reporting this deduction in the year end form.

7. Click Next twice. Verify that the information shown on the Create Element: Review page is correct.

8. Click Submit.

How to Create an Eligibility Record

On the Element Summary page, update the newly created element details.

1. In the Element Overview section, select Element Eligibility.

2. Select Actions, and then Create Element Eligibility.

3. On the Element Eligibility name field, enter a name for the eligibility record.

4. In the Eligibility Criteria section, select any criteria if you want to restrict who can pay this deduction. Or else, select All payrolls eligible.

5. Click Submit.

   All the associated balances, feeds, input values, formulas, and related elements required for payroll processing are created automatically.