Involuntary Deductions Card for the US

As the employer, when you receive an involuntary deduction order, you must create the employee's Involuntary Deductions card. Unlike the Tax Withholding card, there's no option for automatically creating the card upon hire.

Here's how you create and configure the Involuntary Deductions card.

What you want to do	How you do it
Assign involuntary deductions to a person	Use the Calculation Cards task to create the Involuntary Deductions card if one doesn't already exist. Then you can add card components for each deduction. Note: You can't process involuntary deductions for retirees and contingent workers.
Configure deduction details	Use the calculation component details on the card's calculation component to enter values, such as the order amount payee and received date.
Set overrides	Use the calculation values on the card's calculation component to enter values, such as order amount and total owed amount.
Update the card as needed	After you have defined the card and assigned the involuntary deductions, you can always edit the card later for reasons like: Adding or editing deductions End dating a deduction Deleting an invalid or malformed deduction

For further info, see the following sections.

Assign Involuntary Deductions to a Person

You must create the Involuntary Deductions card before you can levy any involuntary deductions against an employee's income.

An employee should only have one active Involuntary Deductions card at a time, as the card is created per payroll relationship and is effective-dated. After the employee has the card, you can assign the deductions to them as calculation components on the card.

Some processes create the card automatically for eligible employees, such as the Run e-IWO Process. In most cases, however, you must create the card manually or through a loader.

You can use HCM Data Loader to upload involuntary deduction data. For further info, see Loading US Data Using HCM Data Loader (2558276.1) on My Oracle Support.

1. Create the card.

   1. From My Client Groups, click Payroll.

   2. Click Calculation Cards.

   3. Search for and select the person.

   4. Click Create.

   5. Select Involuntary Deductions, and click Continue.

2. For each involuntary deduction, add the associated calculation component to the card.

   For further info, see Add Deductions to the Involuntary Deductions Card for the US in the Help Center.

   1. In Calculation Components, click Create.

   2. Select the calculation component with the same name as the involuntary deductions element you defined.

      This creates an element entry for the related element.

   3. Use Subprocessing Order to change the deduction's default processing priority.

      The payroll process calculates each deduction based the priority it inherits from its deduction type.

      For further info, see Add Deductions to the Involuntary Deductions Card for the US in the Help Center.

   4. For the appropriate deduction types, enter the state.

      This is required for state-issued orders such as child support or garnishments. It's not applicable for federal orders such as bankruptcy or education loans.

      For support orders, if the employee's work state is different from the issuing state, enter the employee's work state in this field. This ensures the payroll process applies the correct state legislative rules.

   5. Enter a reference code to uniquely identify this deduction, such as a court order number or other identifier provided by the issuing authority. This value must be unique by deduction type and state.

   6. Click OK.

You can add multiple calculation components for the same or different involuntary deduction types. For example, you can add two child support components and one garnishment component to the same calculation card. Assign each component a unique reference number.

Configure Deduction Details and Set Overrides

Complete the fields on Calculation Component Details to set calculation component details for individual card components.

1. Configure the involuntary deduction rules' payment details and deduction data.

   1. In Involuntary Deduction Rules, enter the date the involuntary deduction order was received.

   2. Optionally, enter the frequency of the deduction.

      This is the frequency of the order amount you entered, such as monthly or weekly. Use this only when the involuntary deduction order specifies a frequency that is different from your payroll frequency.

      Federal tax levies ignore this setting.

      Don't specify a frequency for involuntary deductions configured with an order percentage.

      If you leave this field blank, the payroll process uses the payroll frequency. If the frequency you enter doesn't match the payroll frequency, the process converts the calculation values during the payroll run.

   3. Provide any other pertinent info in this section.

   4. In Involuntary Deduction Payment Details, select the payees for the deduction.

      • Order amount payee is required.

      • Processing fee payee is required if you are charging the fee to the employee.

      • Organization fee payee is required if you are charging the fee to the employee.

      For further info, see Involuntary Deduction Fees for the US in the Help Center.

   5. Expand US Involuntary Deduction Data.

   6. Enter the remittance identifier.

      When you run the Make EFT Payments for third-party payments, it includes this data on the electronic funds payment file. It appears as the Case Identifier on the addenda record.

   7. Provide any other pertinent info in this section.

   For further info, see Configure Involuntary Deduction Details for the US in the Help Center.

2. Click Enterable Calculation Values on Calculation Cards, and set any necessary overrides.

   For example, entry of an order amount or order rate.

   For further info, see Set Overrides on the Involuntary Deductions Card for the US in the Help Center.

3. Save the component.

4. Add any other components to this card as needed.

   You can add multiple calculation components for the same or different involuntary deduction types. For example, you can add two child support components and one garnishment component to the same calculation card. Assign each component a unique reference number.

Edit the Card

Use the Calculation Cards task to edit cards.

What you can do	What this means
Add or edit deductions	This consists of creating or modifying the calculation components.
End date deductions	You must end date a calculation component after an involuntary order is satisfied. The payroll process automatically stops processing an order after either the total owed amount or maximum duration is reached. Note: Exceptions to this are federal tax levies. If you have configured the element to allow for additional penalties and interest beyond the total owed, they continue to be withheld even after the total owed is reached. To end date a calculation component, select the End Date action, and click Save. When you end date the calculation component, the task also end dates: Element entry Calculation component details Calculation values The payroll process no longer processes the component in payroll runs after that date. The payroll process doesn't process deductions that were end dated in the middle of a pay period. When you terminate an employee, the task end dates the card and card components as of the final close date. Configure the latest entry date for involuntary deduction elements with Final Close.
Delete invalid deductions	Delete a calculation component only if you improperly defined it and it's unusable. For example, if you selected the wrong deduction type, chose the wrong state, assigned it to the wrong employee, and so on. Note: You can't delete a calculation component if it has already been processed in a payroll run. To remove the calculation component and all the details associated with it: Select the component on the card. Select Delete Calculation Component and Details from the Actions menu.