Involuntary Deductions Calculation Card Components for Canada

Use the Calculation Cards task under Payroll in My Client Groups to create an Involuntary Deductions calculation card for an employee with involuntary deductions.

You can edit the Involuntary Deductions calculation card of an employee and add calculation components, select the payees for the deduction, set the deduction rules, and set calculation values to override the predefined calculation component values on the card.

Let's look at the components to consider when managing involuntary deductions for Canada:

• Base information

• Calculation component details

• Involuntary deduction data

• Involuntary deduction payment details

• Involuntary deduction rules

• Start and end dates

• Involuntary deduction calculation values on calculation cards, such as:

  • Protected pay rules

  • Exemptions

  • Maximum rules

Base Information

When creating a new calculation component, you're prompted to provide these details related to the involuntary deduction.

Field	Required	Description
Calculation Component	Yes	Name of the involuntary deduction element type that you created for the garnishment, tax levy, or maintenance and support element that you want to attach to the employee.
Element Name	No	Reporting name of the element associated with this calculation component. This isn't editable and is automatically defaulted based on the element selected.
Subprocessing Order	No	Processing order override for cases when multiple card components have been defined. Any positive number can be used for this value. The lower the number, the higher the priority. When multiple card components exist, use the subprocessing order to ensure correct processing. Enter a large number for the first card component, such as 100, and for subsequent card components, use a lower or higher number. The number you enter depends on whether you want it processed before or after the existing card components. For example: An employee has both a maintenance and support and a garnishment order. Enter 50 for the maintenance and support component and 100 for the garnishment component. This ensures the maintenance and support processes before the garnishment. In the case of duplicate subprocessing orders, involuntary deduction elements are processed in order by the element entry date. In the case of duplicate involuntary deduction elements, where the same start date is used and no subprocessing order is specified, the elements are processed in order by the lowest element entry ID (the order in which the element entries were created).
Reference Code	Yes	Reference code as provided on the originating order. This code is used to uniquely identify the deduction. An employee can have more than one order of the same deduction element. You can enter a court order number, remittance identifier, or other identifier provided by the issuing authority.

Calculation Component Details

Calculation component details contain settings shared across all involuntary deduction types.

These values are predefined based on the legislative rules. Use the Calculate Value Definitions task to set overrides for them for all employees in the LDG.

Let's look at the calculation components that are created and applied automatically whenever an involuntary deductions card calculation component is created for an employee:

• Involuntary Deduction Data

• Involuntary Deduction Payment Details

• Involuntary Deduction Rules

Changes made in the Calculation Card apply to the current employee only.

Involuntary Deduction Data

Involuntary deduction data provides configuration details for the involuntary deduction. The details you can add include:

• Multiple calculation components for the same or different involuntary deduction types

• Subprocessing Order to specify the order in which the deductions are to be processed in the payroll run

• Calculation component details for Garnishments, Support or Tax Levy deductions

Involuntary Deduction Payment Details

The payment values provide details on how involuntary deductions and their fees are paid. The list of available options for these fields is populated by persons and organizations defined through the Third Parties task. The payee fields display all third-party person payees associated with this payroll relationship and all external payees defined for your legislative data group.

Note: To use a third-party organization payee, select "External Payee" in the Party Usage Code field on the Third-Party Payment Methods page. This makes the organization payment method available for selection as a payee on the employee's involuntary deductions card.

Involuntary Deduction Rules

In the Involuntary Deduction Rules section, enter the receipt date of the order, the start date of the deductions, the frequency of deductions, and the issuing authority.

You can override the order amount, fee, or other amounts used in the calculation on the Involuntary Deductions card.

The Frequency field specifies how often the deduction is made, such as monthly or weekly, regardless of the payroll frequency. If you leave the Frequency field blank, the payroll frequency is used.

Start and End Dates

The following start and end dates determine which involuntary deductions are included in payroll processing:

• Effective As-of Date

  Set when the involuntary deductions card is created.

• Received Date

  Found under Involuntary Deduction Rules for the calculation component, this field indicates when the deduction order was received. Used to specify when the deduction begins in payroll if no start date is specified.

• Start Date

  Found under Involuntary Deduction Rules for the calculation component, this field determines when the deduction should begin deducting in payroll. If not specified, Oracle Fusion Payroll uses the received date.

  The element entry starts on the same date as the card component effective date and not as of this start date. If applicable, the maximum withholding duration days are tracked from this date. The start date should be on or after the card component date.

• End Date

  When an involuntary deduction has been fully repaid, you must end date both the element and the calculation component. To end date a calculation component:

  1. End date all overrides associated with the calculation component and save.

  2. End date each of the calculation component details and save:

  3. End date the calculation component.

     Once the calculation component is end dated, the element entry is end dated.

Involuntary Deduction Calculation Values on Calculation Cards

The Involuntary Deduction Calculation Values on Calculation Cards section has rules that are specific to the involuntary deduction or calculation component. These rules are configured for each involuntary deduction as defined by the calculation component.