Group 0 Type 1
This deduction is a specialized deduction used to pay an advance and automatically reclaim the advance amount on the next pay period. This deduction is designed to pay out a negative deduction amount when the year to date balance of the employee's Advance and Reclaim deduction is zero. The reclaiming of the advance amount automatically occurs on the next payroll period when a Year To Date balance exists on the employee's Advance and Reclaim deduction. The amount reclaimed from the employee is the Year To Date balance, thus ensuring the reclaim always equals the advance amount paid.
The deduction amount on the employee master deduction list would contain a negative value which would represent the employee's advance amount. An advance will NOT be paid to employee's that are On Leave With Benefits.
To ensure the employee's reclaim of advance is always processed, it is recommended that the Advance and Reclaim deduction be defined to arrear into the Arrear To Deduction code. This advance pay method does not require the employees to have an active pay cycle code. The payroll calendar (for a pure advance pay) would be defined with no pay cycle codes, although a start and end date will be required. Employees paid in this manner will have no earnings or timesheets reported under the Earnings Summary process. Although no pay cycles codes need to be defined in the payroll calendar this does not prevent you from having some employees paid based on pay cycle codes in the same payroll calendar.
On payrolls where the advance run is a pure advance run with the reclaim taking place on the next pay period, this Advance and Reclaim deduction would not require a Deduction Frequency code. When the Deduction Frequency code is left blank this deduction is active for all pay periods. On payrolls where multiple employee groups are paid and control of when the Advance and Reclaim deduction is active is required, you would defined a Deduction Frequency on the Advance and Reclaim deduction and apply that Deduction Frequency to the applicable payroll calendars as with any other deduction code.
The Advance and Reclaim deduction may also be suspended by setting the Deduction Frequency on the employee's master to a '*'. On standard advance pay runs no deductions are usually taken. With this advance pay method there are no earnings so no calculation of deductions can take place except for flat deduction amount and garnishees. The exception for garnishees is detailed below. Flat deductions, meaning a Group 1 to 5 Type 0 deduction may be processed on an advance run if necessary. Normally, these deductions would be on a Deduction Frequency that did not apply to the advance payroll calendar. Should a flat deduction amount be included on the advance pay run that included an employer paid portion, the GL costing of the benefit would be based on the employee's master function line, as no earnings exist to define the GL costing.
For processing of garnishees on the advance pay run the deduction codes Group 6,7 or 8 Type 5 (standard garnishee) as well as Group 4 Type 1 have been modified to allow a setup to include the advance deduction pay. These are the only deduction definitions which will allow calculations on the advance deduction amount. On these garnishee deductions you may add the Advance and Reclaim deduction code to the 'Deds [I/DD,DD,]' field to indicate the amount processed through the Advance and Reclaim deduction is to be included as eligible earnings. The amount of the Advance and Reclaim deduction is converted to a positive when it is negative and to a negative when it is positive before the amount is added to the eligible earnings. For example, on an advance pay run the Advance and Reclaim deduction amount could be -1000.00.
A positive 1000.00 would be added to the eligible earnings of the garnishee deduction before it is calculated.
It is recommended that when the Advance and Reclaim deduction is used that the deduction be established as a mandatory deduction using field ‘MandatoryDeductions’ on the Payroll Master Profile. This practice will ensure that the Advance and Reclaim deduction will exist on all new employees.
When you add a new employee after the advance pay has already been processed but before the month end has been paid, just leave the advance amount (deduction amount field) blank or zero so no advance will be paid out on the upcoming month end. This employee's advance amount can be calculated and loaded the next time you calculate all employees. You can also add an employee and enter the negative advance amount at the time the employee is added, but set the Advance and Reclaim deduction start period ahead so the advance will not be active on the month end pay run, thus the advance will not be paid out.
The DeductionAdvancePayCalculationProcess is used to generate the employee's advance amounts.
Code
• 2 numbers (01-99)
Description2 numbers (01-99)
-
30 alphanumeric characters
Group
-
Enter '0'.
Type
-
Enter '1'.
Freq
-
Enter for payrolls where the Advance and Reclaim deduction should always be active.
-
Enter a valid deduction frequency to control when the Advance and Reclaim deduction should be active. This would only be necessary on payrolls where multiple employee groups are paid and the Advance and Reclaim does not apply to all employees.
Table
-
Enter 'N'.
Factor
Limit
Share %
Arrears
-
Enter 'S' followed by the Arrears To Deduction code. The Advance and Reclaim deduction may only be arreared using this arrears method. By attaching the Arrears To Deduction code to the Advance and Reclaim deduction you will assure the employee's advance amount is always reclaimed completed by arrearing any shortage. This deduction should be set to arrear.
-
Enter 'N' when arrearing of the advance and reclaim amount is not applicable.
Zero Balances
-
Enter 'N'. This deduction should not be cleared out.
Step
Extras
Earn
-
Enter 'I/,'
Deds,]
-
Enter 'I/,'