The Variable Deduction Entry is used as one-time deductions for an employee in a pay period. They will only be taken in that period and deductions will be as usual in the subsequent periods. The variable deduction amount is added on to the usual deduction for the single pay period. This is used to correct errors, and to handle one-time random deductions such as employee purchases.
When field 'Allow Timesheet/Retro for Inactives' in the Users Specific Parameters Profile is active, you can enter variable deductions for Terminated and On Leave employees without reactivating them.
There are two types of Variable Deductions, Regular and Override Variable entries. On Regular Variable Deduction entry, the employee deduction amount entered will impact the Employer Share when the deduction is defined so that the Employer Share is a ratio of the employee's deduction amount. On Override Variable Deduction entry, the Employee Deduction amount applies only to the employee portion of the deduction and will not be carried into the Employer Share. The Override Variable can contain Employee, Employer or Eligible amounts and these values are applied directly to the deduction after calculation.
The Override Variable option can be turned on/off from any prompt by selecting the 'Toggle Override Variable' icon. When the Override Variable entry is active, the message 'Override Variable Entry' is displayed on the screen. The variable entry is marked with the Override flag and this can be seen from the Transaction Inquiry, Variable Deduction Edit or Batch Transaction By Pay/Deduction Report. Override Variable entries are displayed with a * OV * marker. The Override Variable flag can be changed per variable deduction entry from the Variable Deduction Edit.
Note: EI should NOT be adjusted through this module. Do the adjustment to EI the EI Adjustment option.
Variable Deduction Entry allows the option to access previously closed batches. Field #8, Prevent Access on Closed Batches in the User Specific Parameter Profile may be set to block access to previously closed batches. Batches that have been process through a Payroll Update (status Final-Updated) Cannot be accessed.
Accessing a previously closed batch requires the batch be re-balanced and closed again.
Batches that have been Suspended Cannot have entries added to the batch and are not accessible through Variable Deduction Entry. Suspended batches may be edited through Timesheet or Variable Deduction Edit if necessary.
Select the 'Override Variable' icon to turn on or off the Override Variable entry option.
Employee Number
-
Enter the number of the employee to input entry for. Use the look-up to select the employee by name.
Deduction Code
-
Enter the deduction number to be added to. This must be a valid deduction on the employee's master record.
The description will display.
When an EI deduction code is entered, a warning message will display. This warning message is a reminder that any variable deductions on an EI deduction code will be processed by the payroll stream, thus reflected in the employee's history. However, the change made by this variable deduction will not be reflected by the EI system.
Variable Date
-
Enter the deduction date as YYYYMMDD or press enter to use the current date.
Deduction Amount
Enter the amount by which the deduction amount for this employee is to be changed. Variable deduction amounts may be negative or positive. The employee's portion of a variable deduction is added to the employee's deduction after the normal calculation of the employee's deduction.
For Override Variable entries the Employee Deduction amount will not be applied to the Employer Share.
Employer's Share $
-
Enter the amount of the employer's share to be added to this deduction.
Note: The employer's share should not be entered on deductions where the employer's share is calculated based on the employee's deduction amount taken. For example, the employer's share on the CPP deduction is one times the amount of the employee's deduction amount taken. In this situation, the employer's share would be calculated on the employee's standard plus variable deduction amount, thus automatically taking care of the employer's share portion related to this deduction. Group 1 type 9, where the employer's share is based on the earnings (not the deduction amount), the employer share on the variable deduction would be required.
For Override Variable entries the employer share deduction amount does not impact or come from the Employee Deduction amount.
Eligible Earnings
-
Enter any eligible earnings. The variable deduction eligible earnings are added to the pay period eligible earnings after the natural calculation of the deduction. This field would only be used for adjustments of the eligible earnings and not to change the calculation of the deduction.
Variable Reason
-
Enter up to 30 characters to identify the reason for the variation to the standard deduction amount.
Select the 'EI Rebate Payout' icon to trigger the entry of the special EI Rebate Payout Toggle. Refer to EI Rebate Payout Toggle documentation at the end of this option.
The number of input detail items, as well as the hours, money only, and documents input will be displayed. The batch header totals will also be displayed for verification.
The batch statistics or totals per batch are displayed on exit of the batch. Accept to continue.
Finalize Batch
When you exit a batch, you are given the option to Finalize the batch.
-
Enter 'Y' to balance and close this batch
-
Enter 'N' to leave the batch open.
EI Rebate Payout icon
The special EI Rebate Payout Toggle variable deduction entry will trigger the employee's accumulated EI Rebate balance to be paid out. To enter this special type of variable deduction entry you must enter an EI Rebate deduction code, Group 6,7 or 8 and Type 7 only. Then on the Reason field prompt select the 'EI Rebate Payout' icon. This will generate a variable deduction entry with no variable values but will signal the Payroll system to toggle the EI Rebate payout for the employee. You cannot change fields on the variable deduction entry for this special type of entry.
This special type of enter is a toggle, meaning, one special variable entry will turn on the EI Rebate payout, two special variable entries for an employee will turn off the EI Rebate payout. In other words, an uneven number of special variable entry will trigger an EI Rebate payout, an even number of special variable entries will turn deactivate the EI Rebate payout.
The special EI Rebate payout will not override settings on the EI Rebate deduction. If the EI Rebate deduction is set to payout for a pay period, the special variable deduction will have no effect on the EI Rebate payout. Employees must be in cycle and the EI Rebate deduction cannot be suspended for the EI Rebate Payout to complete.