Setting a Limit for a Payroll Item

You can set a limit for earning:addition, deduction, or employer contribution payroll items. If the limit is reached, the payroll item is no longer included in payroll calculations. A limit can be applied to employee wages or employee withholdings.

Note:

If you set the Decrease Elective Deferral Limits and Automatically Calculate Catch-Up preference on the Set Up Payroll page, all deductions ignore payroll item limits. Limits for employer contributions still apply. For more information, see Decreasing Elective Deferral Limits for an Employee.

To set a limit for a payroll item:

1. When you’re creating or editing a payroll item, in the Limit field, enter a dollar amount equal to the annual limit.

2. Select the limit type:

   • To apply the limit to wages, select Wage. If an employee’s year-to-date wages go over the limit, the payroll item won’t be applied.

   • To apply the limit to the amount withheld, select Withholding. If year-to-date withholdings go over the limit, the payroll item won’t be applied.

3. To apply the limit to all employees, check the Apply Limit to All Employees box.

4. Click Save.

Related Topics

• Payroll Item Types
• Creating Payroll Items
• Creating Payroll Item Groups
• Payroll Item Derivation
• Applying a Default Rate to a Payroll Item
• Inactivating or Deleting Payroll Items
• Editing a Payroll Item
• Scheduling Payroll Item Changes
• Mapping Pay Codes to Payroll Items
• Standard Pay Codes
• Payroll Items Setup

General Notices