Involuntary Deduction Wage Basis Rules

Wage basis rules for involuntary deductions define how:

Earnings contribute to the disposable income for the different involuntary deduction types.

For example, an earning type might contribute to disposable income for Child Support deductions in Alabama but are excluded in California.
Deductions reduce the disposable income for the different involuntary deduction types.

For example, a deduction type might reduce the disposable income for Tax Levy deductions but not for Child Support.

Note:

Configuring these wage basis rules to exclude element classifications isn't a suitable alternative for configuring time-of-writ deductions for tax levies. The payroll process doesn't refer to the wage basis rules when it determines what liabilities the employee had at the time a levy was served.

To view the wage basis rules that have been predefined at the state and federal level:

Start the Component Group Rules task.
Search for and select Involuntary Deductions.
In the tree structure, expand Involuntary Deductions.

Enlarge Calculation Component Group Overview to view the tree.
Expand Wage Basis Rules.

Select the appropriate node.

State to view state-specific rules
No References to view federal rules

A table of all wage basis rules displays, organized by the appropriate state and deduction type.

To view the rules by deduction type, expand the tree under Related Deductions and select the appropriate type.

Green check marks under Deductions have different meanings for earnings and deductions.

A check mark here	Means this
Supplemental earnings	Identifies the classifications that contribute to the disposable income for that deduction type. For example, the Bonus supplemental earning for Alabama is marked as contributing to disposable income for Child Support, Garnishment, and Alimony calculations.
Deductions	Identifies the classifications subject to disposable income. These classifications don't reduce the disposable income for calculations of the indicated involuntary deductions. For example, the Health Care 125 pretax deduction for Alabama is marked as subject to disposable income for Child Support, Garnishment, and Alimony calculations. For the classifications that aren't subject to disposable income, no wage basis rule exists. These classifications reduce the disposable income for calculations of the involuntary deduction. For example, the Health Care 125 pretax deduction for Colorado isn't subject to disposable income for Child Support or Garnishment calculations.
Employee Requested	This payroll component has predefined wage basis rules. By default, all earnings and deductions are subject to disposable income for this component. You can modify them to suit your needs.

A check mark here

Means this

Supplemental earnings

Identifies the classifications that contribute to the disposable income for that deduction type.

For example, the Bonus supplemental earning for Alabama is marked as contributing to disposable income for Child Support, Garnishment, and Alimony calculations.

Deductions

Identifies the classifications subject to disposable income. These classifications don't reduce the disposable income for calculations of the indicated involuntary deductions.

For example, the Health Care 125 pretax deduction for Alabama is marked as subject to disposable income for Child Support, Garnishment, and Alimony calculations.

For the classifications that aren't subject to disposable income, no wage basis rule exists. These classifications reduce the disposable income for calculations of the involuntary deduction.

For example, the Health Care 125 pretax deduction for Colorado isn't subject to disposable income for Child Support or Garnishment calculations.

Employee Requested

This payroll component has predefined wage basis rules. By default, all earnings and deductions are subject to disposable income for this component. You can modify them to suit your needs.