How Do I Set Involuntary Deductions Eligibility for Earnings
When you define an earnings element, the element template provides an option for choosing how to process and pay the element. For these elements, this setting affects how the process calculates involuntary deductions.
For this template setting |
The process does this for the earnings |
And this for the involuntary deduction |
---|---|---|
Process and pay with other earnings |
Calculates the earnings in the regular run. In this case, the process uses regular tax rates. |
Deducts the involuntary deduction order or the calculated amount and applicable fees from the regular process run. |
Process separately, but pay with other earnings |
Calculates and taxes the earnings through a separate payroll action, but it's paid with the other earnings. They appear as single entries in the Statement of Earnings and payslip. In this case, the payroll process uses supplemental tax rates. For supplemental runs, earnings are always taxed at the supplemental rate. Use this setting for earnings that require special tax rules, such as bonuses. |
Deducts the order amount from the regular process only. It's not deducted again from the process separate run unless the order amount hasn't been fully satisfied in the regular run. The exception to this is for order amount overrides entered as a rate. For these cases, the amount is deducted from both the regular and process separate runs. Any applicable fees are deducted from the regular process only. |
Process separately and pay separately |
Each earning is processed in a separate payroll action. They are paid separately from other earnings and appear as separate Statement of Earnings and payslip entries. In this case, the payroll process uses supplemental tax rates. For supplemental runs, earnings are always taxed at the supplemental rate. |
Not recommended for earnings that are subject to involuntary deductions. |