Overview of Calculation Value Definitions

A calculation value definition specifies how a value is provided or calculated. The value isn't necessarily monetary.

Typically, it's a flat amount or rate, but it could be a date or a text value, such as a tax code, depending on the calculation type. Some definitions hold the values in a table, so that different values apply to different employees.

There are predefined calculation value definitions used to calculate statutory and involuntary deductions. You can't edit predefined calculation value definitions.

You can create and edit calculation value definitions using the Calculate Value Definitions task in the Payroll area. For example, you can set defaults, turn the values into a range (0 -100), and make them enterable on the calculation card.

Value Definition Groups

When you create a calculation value definition, you can select an existing group or create a new one. The group categorizes related calculation value definitions.

Examples of value definition groups predefined for Canada include:

  • Absences

  • End of Year

  • Deduction Rules

  • Exemption Rules

  • Federal Tax

  • Fee Rules

  • Limit Rules

  • Provincial tax

  • Time

Calculation Value Definition Rules

Calculation value definition rules help determine how deductions are processed and payments are calculated. This table lists the applicable rules.

Rule Name

What the Rule Does

Deduction Rules

Involuntary deductions may be calculated as a percentage of gross pay, net pay, all monies or a flat dollar amount. The court may set maximum amounts that can be deducted for each pay run, pay period, or on a monthly basis.

Exemption Rules

Protected pay is the amount of net pay an employee is left with after the involuntary deduction is taken. For each province and type of involuntary deduction, a portion of the earnings paid to an employee is exempt from involuntary deductions and set aside as protected pay. Regardless of multiple assignments or multiple runs in a pay period, protected pay should be applied.

These rules apply to all employees in your legislative data group. If you set an override on a calculation component on the Involuntary Deductions card, it impacts only the employee associated with that card.

Fee Rules

Some involuntary deduction types have additional fees payable to the employer, the court, or other third-party organization. These rules define how those fees are levied. Canada supports the following two types of fees:

  • Initial Fee: One time payment normally paid on the first run of the deduction.

  • Processing Fee: Recurring fee normally paid each time the involuntary deduction is made. If you have selected an initial fee, the processing fee is deducted separately.

The fee amount can be paid to a person or organization other than the recipient of the deduction payments.

Limit Rules

Limit rules define the total owed amount for involuntary deductions.

To view and edit the rules or create them:

  1. Start the Calculate Value Definitions task.

  2. Perform a search for a specific value definition groups.

    You can narrow this search by providing additional information in the Name field.

    For example, for Quebec Exemption Rules, query by the province name, such as "Quebec%". To search for federal values, use "Tax Levy%", "Garnishments%", or "Maintenance and Support%",

  3. Select a predefined rule to view its details.

    Click Create to define a new rule.