Set Deductions as Subject to Arrears

In order for the arrears process to calculate on the proper deductions, you must set them as subject to arrears using the Arrears/Payback tab in the PR Deductions/Liabilities form.

For more information on arrears, see Employee Arrears (Australia).

Note: The settings on the Arrears/Payback tab can be overridden by employee on the PR Employee Dedns/Liabs form. For more information, see Activate Arrears Calculations for Employees.
To set deductions as subject to arrears:
  1. Select a deduction to set as subject to arrears. Arrears deductions must have a calculation category of employee (Calculation Category field) and have a calculation method of amount (Method field).
  2. On the Arrears/Payback tab, select the Subject to Arrears check box. The system enables the fields in the Reporting Arrears Threshold and Payback Per Pay Period sections.
    Note: For deductions that already have the Subject to Arrears check box selected, you cannot clear it if:
    • There are arrears records associated with this deduction code on the PR Arrears/Payback History form.

    • There is an existing Life to Date arrears balance for an employee associated with the deduction code in the PR Employee Dedns/Liabs form.

    • Payback values for this deduction code exist in an open payroll.
  3. Set the reporting threshold for the deduction arrears in the Reporting Arrears Threshold section.
    1. Select the option that determines the arrears reporting threshold: Use Threshold Factor or Use Threshold Amount.
    2. If you want the arrears threshold to be determined by percentage (factor), enter the percentage amount in the Threshold Factor field.
    3. If the arrears threshold is a flat amount, enter the amount in the Threshold Amount field.
      Note: Arrears thresholds are used for reporting purposes only on the PR Arrears/Payback History report.
      • Factor - If you are using a threshold factor, the system multiplies the standard deduction amount by the factor value. When employees reach or exceed this factor value, their name displays on the report.
      • If you are using a threshold amount, employees names display on the report when they reach or exceed the threshold amount.
  4. Set the payback amount for the arrears deduction in the Payback Per Pay Period section.
    1. Select to have employees pay a percentage amount per pay period (Use Payback Factor) or a flat amount per pay period (Use Payback Amount).
    2. If you want to use a payback factor, enter the percentage amount in the Payback Factor field.
    3. If you want to use a flat amount, enter the amount in the Payback Amount field.
  5. Save the record.