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).
- 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).
- 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.
- Set the reporting threshold for the deduction arrears in the Reporting Arrears Threshold section.
- Select the option that determines the arrears reporting threshold: Use Threshold Factor or Use Threshold Amount.
- If you want the arrears threshold to be determined by percentage (factor), enter the percentage amount in the Threshold Factor field.
- 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.
- Set the payback amount for the arrears deduction in the Payback Per Pay Period section.
- Select to have employees pay a percentage amount per pay period (Use Payback Factor) or a flat amount per pay period (Use Payback Amount).
- If you want to use a payback factor, enter the percentage amount in the Payback Factor field.
- If you want to use a flat amount, enter the amount in the Payback Amount field.
- Save the record.