About Accumulating Subject and Eligible Amounts

Subject amounts (the amount subject to the calculation of a deduction or liability) are accumulated for each deduction/liability and are used on several reports in the Payroll system.

Eligible amounts are typically accumulated to track taxes with a limit (such as FUTA, and SUTA), but can be accumulated in any deduction/liability with a limit. Accumulations are automatically maintained in the system and can be edited with the PR Employee Accumulations form.

Subject Amounts

The Payroll system considers subject amounts to be all wages that are subject to a certain deduction or liability. Subject amounts do not stop accumulating at the limit; however, if a limit exists, then it is checked before calculating the amount for the deduction or liability. If the limit has been reached, then the subject amount is accumulated, but the calculation is not made for it. The limit is also checked when W-2s are run so that correct amounts are printed.

This system of updating subject amounts works well when limits (such as SUTA) are changed mid-year because the system will recognize that the deduction/liability needs to be calculated based on the limit. When determining if a liability or deduction should be taken, the system compares the annual limit from PR Deductions & Liabilities (which is the annual income limit times the rate) to the year-to-date deduction/liability amount. If the year-to-date amount is lower than the annual limit, then the system calculates the deduction/liability by multiplying the pay period subject amount by the rate (making sure not to exceed the annual limit).

Eligible Amounts

The eligible amount is the subject amount up to the annual limit for the deduction/liability being reported or tracked. Eligible amounts stop accumulating when the limit is reached, whereas subject amounts continue to increase, but the deduction or liability is not accumulated once the system determines the limit has been reached. The eligible amount is tracked for unemployment deduction/liabilities.