Multiple Variable Deductions

The Multiple Variable Deductions process supplies a means to generate variable deduction batches for a specific deduction code for selected employees. This process can be used to generate flat amount variable deductions or variable deductions based on a percentage of a previously taken deduction amount. A flat amount variable deduction would be used when the change to be applied to the deduction is the same for all employees selected. The percentage of a previous balance variable can be used when the amount of an adjustment to a deduction is dependent on the amount each employee pays, for example a table deduction where there can be many different amounts taken depending on the employees table level. The percentage calculation can also be used when a rate increase or decrease is to be applied.

Entries for either employee or employer share variable deductions can be generated. Employee selection criteria includes selection based on a specific deduction or deduction table code (when applicable) or selection by employee number. Selection by function line elements such as pay cycle, salary grid, pay type, cost center, occupation code, employee type, shift code is available. The option to select based on the employee having had the deduction taken under a specified pay period is also available.

History amounts for Benefit deductions (the employer share% on the employee's master is set to 'Benefit') will be listed and processed under the employee deduction amount. This was done to allow a deduction, which is both a benefit, and a cost shared deduction to be processed under the same run.

When the deduction to be processed is included under the Benefit Distribution (field 'Benefit Percentage Distribution' under User Specific Parameters Profile) the variable amounts for the employee / employer are processed as is. Variable amounts are applied after the Benefit Distribution is completed.  
Note: Variable deductions can be processed for a deduction regardless of the deduction frequency code. Variable deductions can be processed in any pay period even when the deduction is not in frequencies and even when the deduction code is suspended.

Enter the Deduction Code 

• Enter the deduction code to receive the variable deduction. The employee must have this deduction code listed on their master deduction code list.

When the deduction code entered is a Table deduction:

Enter Deduction Table Code

• Enter to omit selection based on the table deduction code.
• Enter a specific table deduction code. Only employees with this table deduction code will be processed.

Base Variable Amounts on Prior Values

• Enter 'N' to generate a flat amount variable deduction.
• Enter 'Y' to generate a variable deduction as a percentage of a previously taken deduction amount.

The next 3 prompts apply if Flat Amount Variable Deduction is to be generated

Enter the Deduction Amount

• Enter the additional deduction amount to be applied to the employee's deduction amount.

Enter the Employer's Share

• Enter an additional amount to be applied to the employer portion of the deduction. Note: An amount entered under the employee's deduction amount will also carry over to the employer's share for all deduction where the employer share amount is a percentage of the employee's deduction amount.

For example, CPP where the employer share is amount is based on the employee's actual deduction amount. The employer share is calculated based on the employee's deduction amount including variable deduction amounts.

The only exception to this rule for deductions is where the employer share is not based on the employee's deduction amount. On deductions such as Group 1 Type 9 (BC pension) the employer share is defined as percentage of the eligible earnings, a variable amount applied to the employee's deduction will not affect the employer share.

Enter the Eligible Earnings      

This field is usually left blank.

• Enter an addition eligible earnings amount to be applied after the deduction has been calculated.

The next 5 prompts apply IF a variable as a Percentage of a previous deduction is to be generated 

Enter Prior start Period         

• Enter the starting pay period for a range of periods to be used in determining the deduction amount base. The total deduction amount taken under this pay period range will be used in the calculation of the variable deduction.

Enter Prior End Period          

• Enter the ending pay period for a range of pay periods to be used in determining the deduction amount base.

Enter Percent of Deduction         

• Enter the percentage of the employee's deduction amount to define the variable deduction amount. Enter 1.00 for 100% or .50 for 50%.

Enter Percent of Employer Share    

• Enter the percentage of the employer share amount to define the employer share variable amount. Enter 1.00 for 100% or .50 for 50%. Note: An amount entered under the employee's deduction amount will also carry over to the employer's share for all deduction where the employer share amount is a percentage of the employee's deduction amount.

For example, CPP where the employer share is amount is based on the employees actual deduction amount. The employer share is calculated based on the employee's deduction amount including variable deduction amounts.

The only exception to this rule for deductions where the employers share is not based on the employee's deduction amount. On deductions such as Group 1 Type 9 (BC pension) the employer share is defined as percentage of the eligible earnings, a variable amount applied to the employee's deduction will not affect the employer share.

Omit Prior Variables from Calculation  

• Enter 'N' when variables deduction amounts are not to be excluded.
• Enter 'Y' when the history deduction amount to be used in the calculation of the variable deduction is to be first reduced by any variable deduction taken in that history period.

Only batches that have been processed by the payroll stream are included. Batches been processed by the payroll stream have a status of 'Final-Updated'.

Enter the Reason for Deduction            

• Enter a reason for the variable deduction.

Enter Variable Date            

• Enter the variable deduction date.

Enter Batch Pay Period            

• Enter the pay period in which these variable deductions will be processed. This pay period determines which period the batches will be generated for as well as defining which pay cycles are active for this process.

Omit Currently Suspended Deductions     

• Enter 'N' to include employees that currently have the deduction code suspended.
• Enter 'Y' to omit employees that currently have the deduction suspended.

Select Employee's by Code

• Enter a 2 character code to define the field to use for employee/function line selection.

Selection by cycle code (CY) will match on all possible function lines. Selection by other function line elements only related to the master function line.

• Enter 'EM' to select employees based on employee number.

When selection by Employee Number was chosen:

Report All or Selected Employees       

When selection by Pay Cycle was chosen:

Enter Pay Cycle Codes   

• Enter one or up to 11 pay cycle codes for employee selection.

The pay cycles entered must be valid pay codes for the payroll calendar defined by the batch pay period. Employees with an active function line with one of these pay cycle codes will be selected.

When selection by History Pay Period was chosen:

Enter Selection History Period  

• Enter a pay period to be used for employee selection. Only employees who had the deduction code taken under this pay period will be selected.

Enter Batch Type Code            

• Enter a valid batch type code for generation of the batch entries.

Report Only or Process             

• Enter 'R' to generate a report only.
• Enter 'P' to generate a report and create variable deduction batch entries.

For Flat Amount Variables Deductions, the report will list: 

• Employee number and name
• Total employee and employer paid amounts when selection by history period used
• Employee variable deduction amount
• Employer share variable deduction amount
• Eligible earnings variable deduction amount
• Employee's deduction frequency, for reference only
• 'Benefit' is listed when the employee's deduction is a benefit
• Total employees selected
• Total number variable deductions generated

For Percentage Based Variables Deductions, the report will list: 

• Employee number and name
• Total employee and employer paid amounts from history pay period
• Total employee/employer variable deduction amount to be excluded, if applicable
• Employee variable deduction amount
• Employer share variable deduction amount
• Eligible earnings variable deduction amount
• Employee's deduction frequency, for reference only
• 'Benefit' is listed when the employee's deduction is a benefit
• Total employees selected
• Total variable deductions generated