Group 0 Type 0
This deduction is a specialized deduction used to accumulate employees' arrears generated from other deductions. The Arrear-To-Deduction method of arrearing deductions allows the regular deductions to be displayed as if the full deduction amount was taken, while the actual arrear-to-deduction receives the accumulated arreared amount as a negative balance. The balance of the arrear-to-deduction is maintained in reverse of all other regular deductions. A negative balance on an arrear-to-deduction reflects the balance owed by the employee, while a positive balance on this deduction indicates a credit towards future arrearing of regular deductions.
The arrear-to-deduction is attached to other deduction codes through field 12=Arrears, option 'S', on the regular deductions. An arrear-to-deduction may be setup to accumulate arrears for multiple regular arrears, as well several arrear-to-deductions may be defined.
The arrear-to-deduction does not use a yearly limit, nor can this specialized deduction be suspended. When an employee's regular deductions have be defined to arrear to an arrear-to-deduction, and the arrear-to-deduction does not exist on the employee, the arrearing of the regular deduction follows the standard method of arrearing into the arrears file.
A separate Arrears Deduction Report is produced by the payroll stream listing all details of the transactions for the current pay period related to the arrear-to-deductions, when the arrear-to-deduction method is used. This report will list both the arrears taken as well as recovered for each employee for the current pay period.
The arrear-to-deduction can also be used to accumulate gross negative pays, which prevents a payroll error from occurring. The employee's gross pay will arrear automatically, thus preventing a payroll error, if the employee has an arrear-to-deduction on his deduction master. Negative gross pay arrears into the first arrear-to-deduction found on the employee's list of deductions. The Earnings Summary report includes a summary of employees who have negative gross pay that will be arreared into an arrear-to-deduction.
It is recommended that when the arrear-to-deduction method is used, that the arrear-to-deduction be established as a mandatory deduction using field 11=Mandatory Deductions on the Payroll Master Profile. This practice will ensure that the arrear-to-deduction will exist on all new employees.
Code
2 numbers (01-99)
Description
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30 alphanumeric characters
Group
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Enter '0'.
Type
-
Enter '0'.
Freq
Table
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Enter 'N'.
Factor
Limit
Share %
Arrears
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Enter 'N'.
Zero Balances
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Enter 'N'. This deduction should not be cleared out.
Step
Extras
GL Expense
GL LIAB.
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Enter the GL account number to receive the arrearing balance from all regular deductions set to arrear to this deduction.
Earn
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Enter 'I/,'
Deds
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Enter 'I/##,##,##,' where ## are the deduction codes allowed to reduce a current credit balance from this arrear deduction rather than reduce the employee's current earnings. Deduction codes not included on this list will be taken from the employees' earnings for the pay period. Follow the last code with a comma
or if the list is shorter:
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Enter 'E/##,##,##,' where ## are the deduction codes that are disallowed from reducing a current credit balance of this arrears deduction. These deductions will reduce the employee's earnings for the pay period. Follow the last code with a comma.
The deduction code include/exclude list on an arrears deduction only applies to employees who are 'ON LEAVE With Benefits' that have received pay and currently have a credit balance on this arrears deduction Deductions listed on the include/exclude should only include those deductions that are setup to arrear into this arrears deduction. This list of deductions will not affect the arrearing of deductions nor will it affect employees who do not have a credit (positive) balance on this arrears deduction.
The include/exclude list of deductions for employees on leave with benefits is intended to allow an employee to prepay specific deductions such as medical, thus generating a credit in their arrears deduction balance. When the employee is paid, you then have control over which deductions are eligible to reduce the credit balance of the arrears deduction.