Deduction Exceptions in Deduction and Benefit Master

What are the types of exceptions that can be used on deductions and how do I set them up?

• EERP
• Deduction and Benefit Master
• Exceptions window

Instructional

1. Go to Payroll > Payroll Setup > Deduction and Benefit Master
2. Click the Exceptions button
3. Enter the deduction where the exception will be applied
4. Select one of the following for a Processing Code:
   
   1. 1 - ALL PAY TYPES ARE INCLUDED EXCEPT
      1. This will include which pays should not be included in the deduction gross. This also prevents deduction expenses from posting to the associated Employee Job/Salary accounts.
   2. 2– NO DEDUCTIONS ARE EXEMPTED EXCEPT
      1. This will define deductions that should be exempted from the deduction code for which you are creating exceptions.
   3. 3 - NO EMPLOYER SHARES ARE ADDED EXCEPT
      
      1. For deductions defined in the exclusion range, this directs the program to add the employer amount taken to the deduction's gross.
   4. 4 - EMPE SHARE DEDUCTED FROM COMPUTED AMT
      
      1. This takes the employee share of a deduction and subtracts it from the employee share of another deduction. For example, using FICA and Medicare it subtracts FICA's employee amount from the Medicare employee amount to get Medicare's employee amount to be taken. When creating the exception record, the deduction code defined would be FICA, with Medicare defined in the exclusion ranges.
   5. 5 - ADJUST GROSS WHEN DED LIMIT REACHED
      1. This adjusts the deduction gross when the deduction limit is reached. This is used for percentage-based deductions and ensures the deduction gross and withholding amounts tie out based on the percentage. This does not need to be set up for FICA or Medicare, as the system automatically adjusts the deduction gross for those deductions.
   6. 6 - SUBTRACT PAY HOURS FROM SCHEDULED HOURS
      1. This option is used with deduction calc code 31 (Amount Per Hour from Scheduled Hours). When you specify pay ranges, the hours from those pays are subtracted from the scheduled hours for the deduction. The deduction process never allows the total scheduled hours to go below zero, so a negative deduction is not possible.
   7. 7 - TAKE NO MORE THAN PAY AMOUNTS
      1. This is for flat-amount deductions, directs the program to keep the deduction withholding amount less than or equal to the amount of the pays defined in the range for this exception type.
   8. 8 - ALL PAY TYPES INCLUDED EXCEPT WITH SEG
      1. Allows you to specify any GL segment to exclude from the deduction. When you select this option, define the segment type in the GL Segment field and then use the Exclusion Ranges fields to define the codes of that type to exclude. For instance, if you select the Object Code option from the GL Segment list, then define ranges of object codes in the Exclusion Ranges fields.
   9. 9 - TAKE NO MORE THAN EMPE DEDUCTION AMOUNTS
      1. This is for deduction calc code 32 (Pct by Years of Service), determines whether the employee contributes to at least one of the deductions specified and that the amount of the calc code 32 deduction does not exceed the total of these deductions.
   10. 10 - COMPUTED AMT MINUS CONTRIBUTION AMTS
       1. This takes the employee or employer share of a deduction and subtracts it from the employee or employer share of another deduction. For example, using FICA and Medicare it subtracts the Medicare employee and employer amounts from the employee and employer amounts to determine the amounts to be taken for FICA. When creating the exception record, the deduction code defined would be FICA, with Medicare defined in the exclusion ranges.
   11. 11 - ALL PAY TYPES INCLUDED EXCEPT WITH LOC
       1. Excluded pays based on pay location defined in the Exclusion Ranges group. Location codes are maintained in the Location Codes program.
          
5. Define the GL segment if needed. This field is only applicable when using Exception Type 8 - ALL PAY TYPES INCLUDED EXCEPT WITH SEG
6. Choose whether or not to select Apply Pay Exceptions when Adding/Subtracting.
   1. If selected it directs the program to apply pay exceptions when adding or subtracting deduction amounts
   2. Typically, this option is not used. It is an enhancement for a specific site. See Apply Pay Exceptions when Adding Subtracting in Payroll Exceptions
7. Fill in the Exclusion Ranges to exclude.
   1. The ranges can be alphanumeric project ranges, other GL segment ranges, or deduction and pay ranges
   2. This can be left blank for Type 8 exceptions

   3.  For type 1 and 8 codes, an Exclude Exp Only checkbox is available. When selected, the pay is excluded from the expense allocation of a deduction.

      
      

For further information: ERP Payroll Exceptions Help link