Protected Pay for Mexico

For each type of involuntary deduction, a portion of the earnings paid to an employee is exempt from involuntary deductions. These earnings are referred to as protected pay. The remainder of the earnings is considered disposable income.

Regardless of multiple assignments or multiple runs in a pay period, protected pay is applied.

Use the Enterable Calculation Values on Calculation Cards tab on the Calculation Cards page, to enter the protected pay amount.

Multiple Deductions of the same Deduction Type

If an employee has multiple deductions of the same deduction type, the highest value derived for protected pay is determined within each deduction type. The process applies that value to all other deductions of that same deduction type.

For example, consider a case where multiple child support orders are configured with different rules, one with a protected pay amount of 2000, and the other with an amount of 2500. The higher amount of 2500 is applied as the protected pay amount for both child support orders for the employee.

Multiple Deductions of Different Deduction Types

If the deduction types are different, the highest protected pay doesn't apply across deduction types. Each deduction type determines its own protected pay value.

The order in which the elements are processed is determined by the subprocessing order. If a child support order deduction is processed first, that deduction impacts how much of the disposable income is available for subsequent deductions processed.

Protected Pay Rules

Configure protected pay rules for each individual deduction on the involuntary deduction card for the employee. Use the Enterable Calculation Values on Calculation Cards tab on the Calculation Cards page, to enter the protected pay amount.

Disposable Income Rule

For Mexico, the default value for disposable income is Net Pay. This means that the employee's net pay is used in the protected pay calculations. Net pay represents gross pay less statutory deductions.