Group 0 Type 4
This deduction is a specialized deduction used to accumulate employees benefit amounts to be paid by the employee through EFT directly from the employee's bank account. Employee paid only deductions and those deduction must be defined to Arrear to the regular Group 0 Type 0 Arrears Deduction. The Pre Authorized Debit deduction, like the Arrears deduction, auto balances as a negative value against the total benefit deductions defined to be included. The Pre Authorized Debit deduction is calculated after all other deductions but before the % Of Net Pay deduction.
The use of the Pre Authorized Debit deduction eliminates the need to track outstanding Arrear amount and is auto paid so there is no manual adjusting when the employee pays their benefits. This is much similar method of recouping the costing of benefits for employee that are on an unpaid leave.
The Debit EFT entries used the employee's first bank account information only.
When an employee has a positive or prepaid Arrears balance, this Pre Authorized Debit deduction will capture all the benefit amounts creating the full negative deduction but it has the affect of also paying back through Net Pay the positive Arrears balance up to the total of the Pre Authorized Debit amount. For example, if the employee had a positive Arrears Balance of 10.00 and the total Pre Authorized amount for the pay period is -50.00. The employee would receive a net pay of 10.00, thus clearing the Arrears balance and the -50.00 is the amount of the EFT Debit from the employee's bank. If the Arrears is 75.00 and the Pre Authorized is -50.00, then only 50.00 would be paid back in the pay period while the other 25.00 would be paid back on the next pay period, unless of course a manual entry is made.
To activate the generation of the Debit EFT entries, the code 'EFT' must be the first three characters in the EXTERNAL Name field on this Pre Authorized Debit deduction. Without the 'EFT' setting, the Pre Authorized Debit deduction will balance out the benefits amounts to be paid, but the actual entry to the Bank EFT file will not be created.
The EFT generation option is not available for the Royal Bank (PRPY0L), TD Bank (PRTP0K), National Bank (PRTP0R), CUCBC (PRTP0J), HSBC (PRTP0H), Norwest (PRTP0D) nor Stockman Bank (PRTP0L). Although the Pre Authorized Debit deduction could be used, the Debit entries to these banks will not be created.
When Pre Authorized Debit Entries are created during the Payroll Processing or Bank Merge process, the total bank Credits and number of Credits is reported separately from the total bank Debits and number of Debit entries.
Code
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2 numbers (01-99)
Description
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30 alphanumeric characters
Group
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Enter '0'.
Type
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Enter '4'.
GL Expense
GL LIAB.
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Enter the GL account number for the actual bank account to receive the employee's payment.
Earn
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Enter 'I/,'
Deds
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Enter 'I/##,##,##,' where ## are the deduction codes that make up the amount the employee is to pay or have the Debit entry created for. Deduction codes not included on this list will be taken from the employees' earnings or drop into the Arrears deduction if applicable. Follow the last code with a comma
or if the list is shorter:
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Enter 'E/##,##,##,' where ## are the deduction codes to be omitted from the accumulation of the Pre Authorized Debit total per employee. Follow the last code with a comma.
EXT Name
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Enter 'EFT' in the first three characters of the External Name to trigger the generation of Debit EFT entries from this Pre Authorized Debit deduction to the payroll EFT Bank file.
The EFT generation option is not available for the National Bank (PRTP0R), CUCBC (PRTP0J), HSBC (PRTP0H), Norwest (PRTP0D) nor Stockman Bank (PRTP0L). Although the Pre Authorized Debit deduction could be used, the Debit entries to these banks will not be created.
Add any addition information after the first three characters to further identify the deduction.