Apply Pay Exceptions when Adding Subtracting in Payroll Exceptions

In Deduction and Benefit Master under Payroll Exceptions, what does the, Apply Pay Exceptions when Adding/Subtracting checkbox do?

• Payroll

• Deduction and Benefit Master

• Payroll Exceptions 

The Apply Pay Exceptions when Adding/Subtracting checkbox in the Payroll Exceptions was added as an enhancement for a specific site to prorate addition/subtraction amounts for type 2 and 3 Payroll Exceptions.

There are two scenarios where it may be used:

•  State taxes for multiple states when health insurance amount subtracted should only be for a portion of wages applicable to the wages earned in that state.

• Retirement Premiums (For state of Ohio) - Additional employer amount of 1% pickup of employee contribution should only be for portion of wages for which that deduction is being withheld on (federal funds mostly).

Example of how this setting calculates:

• An employee has pay code 150 (3,929.40) and 400 (436.60) in payroll. 

• They also have deduction 5000 for Local Tax and Deduction 2000 for Health Insurance. 

• Deduction 5000 is not subject to pay 150 so it is setup in the Payroll Exceptions with a processing code 1-All pays are included Except. 

• Deduction 5000 also has deduction 2000 setup to be excluded in Payroll Exceptions with a processing code 2-No deductions are exempt except with the Apply Pay Exceptions checkbox checked. 

• The Deduction detail for deduction 5000 in payroll without the, Apply Pay Exceptions checkbox checked, will show two lines for deduction 2000 in the Deduction Gross breakdown.

  • -37.89 would show as the amount from pay 150

  • -4.21 would show as the amount from pay 400

• Since pay 150 is excluded from 5000 the amounts being withheld from other deductions exempt from 5000 should not be included in the deduction gross calculation. 

• When the. Apply Pay Exceptions checkbox checked, the deduction gross breakdown would only show one line for 2000.

  • -4.21 from pay 400.