Employee Net Pay Threshold

To avoid issuing low-value employee cheques, define a threshold amount so that any amount below the threshold amount is automatically applied to the employee's Federal Tax obligation. Anything above the threshold amount are paid out as normal.

Use the Calculation Value Definitions task in the Setup and Maintenance area to define the Employee Net Pay Threshold value. This value is defined for the legislative data group (LDG) so that it applies to all organizations.

Note: The employee must have a Federal Tax deduction amount to which the amount below the threshold is added. If the employee doesn't have a Federal Tax deduction amount, Net Pay adjustment doesn't occur and the amount below the threshold is paid as normal.The Net Pay adjustment doesn't occur if the threshold amount isn't set up at the LDG level.

Complete these steps to set up the Employee Net Pay Threshold:

1. Navigate to Setup and Maintenance area on the Home page.

2. Search for and select the Calculation Value Definitions task.

3. Enter Employee net pay threshold in the Name field, select a Canadian LDG, and click Search.

4. Select Employee net pay threshold.

5. In the Calculation Values section, click Add and enter these range values.

   Field	Value
   From Value	0
   To Value	999,999,999
   Calculation Type Override	Flat Amount
   Flat Amount	Enter the dollar amount of the threshold, for example, 2.

6. Click Submit.

If you have configured the threshold amount, these shadow elements are created to calculate the Net Pay:

• Federal Withheld Adjustment Results

• Federal Supplemental Withheld Adjustment Results