Limit

Indicate how the annual deduction/liability limit will be interpreted.

  • No Limit – Select this option if no limit applies. (Amount, Applied, and Rate fields are set to 'Null' and disabled.)

  • Subject Amount – Select this option if the limit is applied on the subject amount. Subject amounts are typically earnings, but based on the calculation method. This option can be used either for deductions and liabilities with income limits and a single rate (e.g. FICA, SUTA), or for deductions or liabilities with an income limit and variable rate (e.g. Nevada Worker's Comp. State Unemployment (SUTA) must be set up using this limit amount.

  • Calculated Amount – Select this option if the limit is applied on the deduction or liability's calculated amount. This option is used for deductions and liabilities with income limits and a single rate. However, do not use this for SUTA.

  • Rate of Earnings – Select this option if the limit is a rate of total earnings (e.g. 401k employer's match). Total earnings will be based on the earnings codes assigned in the grid. If this is a 401k employer's match, this will typically be all earnings codes that are flagged as 'Subject Only'.

Note: The Rate of Earnings method is for use with Liabilities only. When selected, the following applies:
  • The Applied field is set to P (Pay Period) and disabled, as 'rate of earnings' liabilities are only applicable on a 'per pay period' basis.

  • The Amount field is disabled, as it does not apply to 'rate of earnings' liabilities.

  • The 401k Liability check box is enabled; however, you should only select this check box if this is a 401k employer match liability.