What Happens to Total Owed Deductions During Employee Transfers for the US

When you perform a global transfer, the process uses the Transfer Balance process to copy the person's deduction balances to their new assignment and payroll relationship.

Note: You can run the Transfer Balance process as many times as needed during a person transfer, so long as you don't process payroll for them. Each time the Transfer Balance process copies a balance, it verifies the values on the source and target.

This helps you:

Continue the calculations from where you last left off for their on-going payroll processing.
Enforce statutory balance limits that apply to the overall balance across all payroll relationships for that person.

For example:

You have configured a Car Loan Repayment total owed deduction entry for an employee.
For this recurring deduction, $1000 is to be taken each pay period until the total contribution matches the total owed of $15000.
After having repaid $5000 of the total loan amount, you are transferring the person to a new legal employer.

After the transfer, you want the new employer to:

Continue the deductions, using a new deduction entry for the same element.
Retain the total owed as an indicator of the original loan amount.
Give credit for the prior contributions of $5000 through balance adjustment.

The process doesn't copy deductions that have been satisfied.

Because the remaining amount is non-zero, when you perform the transfer, the Local and Global Transfer process:

Determines the total contributions.
Uses an initialization element to copy the accrued amount.
Creates a balance feed from this initialization element for both the target and source balance.

This balance feed validates the balance value on the target against the source balance.
The process copies the remaining amount into the Prior Accrued balance on the target.

The source balance includes:
- Balance calculated within the source payroll relationship
- Balances received from any previous global transfers