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Deduction Codes

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					Jiasoj

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                      sl         Configuration Approach
   State of Connecticut          Deductions
   CORE-CT Project


Item Overview:
The Deduction tables are used to set up the deductions taken from employee’s pay. These tables are used
to define frequency, tax information, arrears processing, and other specific information for each deduction
that may be taken from an employee’s pay.

Menu Path:
Home/Define Business Rules/Define Payroll Process/Setup 1/Deduction Table

                                         DEDUCTION_CLASS
                                         DEDUCTION_FREQ
                                          DEDUCTION_TBL




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Record Information:
 PS RECORD NAME            RECORD NAME                  DESCRIPTION
 DEDUCTION_CLASS           Deduction Class              This table defines the deduction classification
                                                        information. It is used by batch payroll to
                                                        determine factors for calculating how a deduction
                                                        affects the pay.
  DEDUCTION_FREQ           Deduction Frequency          This record defines how often per month a
                                                        deduction is taken for each pay frequency.
  DEDUCTION_TBL            Deduction Table              This record defines all payroll deductions
                                                        including a description, maximum for arrears, tax
                                                        effects, partial deduction setup and GL accounts.




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   State of Connecticut             Deductions
   CORE-CT Project


Approach:

The State of Connecticut will use this table to identify employee deduction codes and the tax effect associated with
each deduction. The State’s current system defines deduction codes using 2 digit alpha-numeric values. The
deduction codes in CORE-CT will be smart-coded to contain a meaningful set of numbers and/or characters (i.e.
BONDS, RENT, CHET etc.). Deductions will be grouped by plan type, either general deductions or benefit
deductions – Plan types tell the system which calculation routine to use when processing the deduction. The plan
types that will be used in CORE-CT are:
00          General Deduction
10          Medical
11          Dental
12          Medical/Dental
15          Domestic Partner Medical
16          Domestic Partner Dental
20          Life
21          Supplemental Life
25          Dependent Life
45          U.S. Savings Bonds

Unique deduction codes will be set up for each union. This will result in an increased number of deduction codes,
but greater accountability for accurate deduction amounts.

Within the deduction table is functionality to have partial deductions, arrears processing, imputed income
calculations, deductions taken from separate a check and stopping a deduction at termination. The Comptroller’s
Office along with the Benefits team will work together to define this functionality for each deduction.



Information Source:
     The information for this table should be gathered from the Office of the State Comptroller.

Data Entry Method:

            _______On-Line Pages

            ___X__ Excel Spreadsheet

Fields on Record:
 PS RECORD NAME/
 PS FIELD NAME                  FIELD NAME                      DESCRIPTION
 DEDUCTION_TBL
 PLAN_TYPE                      Plan Type                       This 2 character required field will be populated
                                                                with the plan type of the particular deduction that
                                                                is being setup. The State of Connecticut will use
                                                                Plan Types
                                                                00 (General Deduction)


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                                                        10, 11, 12, 15, 16 (Medical and Dental)
                                                        20, 21, 25 (Life)
                                                        45 (Savings Bond)
  DEDCD                    Deduction Code               This is a 6 character required field that contains
                                                        meaningful naming standard for deduction codes
                                                        that the State will use. The State will use
                                                        numbers and characters to ensure that deduction
                                                        codes are meaningful to users.
  EFFDT                    Effective Date               The effective date is a required field that defaults
                                                        to the system date. The State will always set this
                                                        value to ‘01/01/1901’.
  DESCR                    Description                  This is a 30 character description that helps to
                                                        clarify the type of deduction.
  DESCRSHORT               Short Description            This 10 character short description defaults to the
                                                        first ten bytes of the long description but it
                                                        should be set to a meaningful value since this is
                                                        what will be populated on the check.
  DED_PRIORITY             Deduction Priority           This is a 3 byte numeric field that defaults to a
                                                        value of ‘500’. This field is used to define the
                                                        order in which deductions are taken. The lower
                                                        the number is the earlier the deduction is taken.
                                                        This obviously becomes important in the
                                                        scenario where an employee does not have
                                                        enough gross pay to cover all deductions. MSA
                                                        currently has a three number priority field that
                                                        will be used as the basis for defining this value.
  SPCL_PROCESS             Special Process              This one character translate field has three
                                                        existing values: B – for Savings Bond, G – for
                                                        Garnishment, and U for Union Dues. If the
                                                        deduction being defined does not fall into one of
                                                        the three translate values it should be left blank.
  MAX_PAYBACK              Maximum Arrears              This required one character translate field
                           Payback CD                   defaults to ‘N’ – for No Maximum. The other
                                                        two valid translate values are ‘F’ for Factor X
                                                        Regular Deduction and ‘Y’ for Flat Maximum
                                                        for Payback. This field will be set appropriately
                                                        for each deduction.
  MAX_ARREARS_PAY          Maximum Arrears              If the MAX_PAYBACK field is set to ‘Y’ this
  BK                       Payback                      8.2 required numeric field should be set to the
                                                        correct flat amount. This field will be set
                                                        appropriately for each deduction.
  MAX_ARREARS_FAC          Maximum Payback –            If the MAX_PAYBACK field is set to ‘F’ this
  TOR                      Factor x Reg Ded             1.2 numeric field should be set to correct factor.
                                                        This field will be set appropriately for each


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                                                        deduction.
  GVT_DIST_DEST            Distribution Destinations    This one character field is used for Federal
                                                        functionality and should always be set to the
                                                        default value of ‘N’.
  GVT_REPORTING_CD         Reporting Code               This two character field is used for Federal
                                                        functionality and should always be set to the
                                                        default value of ‘NA’.
  GVT_TIME_SENSITIV        Time Sensitive               This one character field is used for Federal
  E                                                     functionality and should always be set to the
                                                        default value of ‘N’.
  PERMANENCY_NLD           Permanent/Incidental         This one character required field is used for
                                                        implementations if the Netherlands and therefore
                                                        should always be set to the default value of ‘B’.
  TAX_CLASS_NLD            Tax Class                    This one character required field is used for
                                                        implementations if the Netherlands and therefore
                                                        should always be set to the default value of ‘1’.
  UNION_CD                 Union Code                   This 3 character field prompts from the
                                                        UNION_TBL. This field only becomes available
                                                        when the SPCL_PROCESS of ‘U’ is selected
                                                        above. For Union Dues deduction codes, this
                                                        field should be set to the value of the appropriate
                                                        union.
  DEDUCTION_CLASS
  PLAN_TYPE                Plan Type                    This 2 character required field will be populated
                                                        with the plan type of the particular deduction that
                                                        is being setup. The State of Connecticut will use
                                                        Plan Types
                                                        00 (General Deduction)
                                                        10, 11, 12, 15, 16 (Medical and Dental)
                                                        20, 21, 25 (Life)
                                                        45 (Savings Bond)
  DEDCD                    Deduction Code               This is a 6 character required field that contains
                                                        meaningful naming standard for deduction codes
                                                        that the State will use. The State will use
                                                        numbers and characters to ensure that deduction
                                                        codes are meaningful to users.
  EFFDT                    Effective Date               The effective date is a required field that defaults
                                                        to the system date. The State will always set this
                                                        value to ‘01/01/1901’.
  DED_CLASS                Deduction Classification     This is a 1 character required field that defines
                                                        tax deduction classifications – current values are
                                                        ‘A’ – After-Tax, ‘B’ – Before-Tax, ‘L’ – QC
                                                        Taxable Benefit (Canada only), ‘N’- Nontaxable
                                                        Benefit, ‘P’ – Nontaxable Btax Benefit, and ‘T’ –


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                                                        Taxable Benefit. Because the majority of
                                                        deductions for the State of Connecticut are ‘After
                                                        Tax’ normally the default to ‘A’ will be
                                                        accepted. For those deductions that have a
                                                        different classification this field will be set to the
                                                        appropriate value.
  DED_SLSTX_CLASS          Sales Tax Type               This 1 character required field is used for
                                                        Canadian Sales tax only- The default for the
                                                        State will be set to ‘B’ – None.
  TAX_GRS_COMPNT           Taxable Gross Component      This 5 character field prompts from the
                                                        TAXGR_CMPNT_TBL – This field becomes
                                                        available when deduction classification is set to
                                                        ‘L’ - QC Taxable Benefit, ‘P’ – Nontaxable Btax
                                                        Benefit, and ‘T’ – Taxable Benefits. This field
                                                        will only be used by the State of Connecticut if
                                                        the Benefits team determines it is necessary to
                                                        calculate a benefit deduction.
  FICA_EFFECT              Effect on FICA Gross         This 1 character required field defines what
                                                        effect the deduction has on FICA gross – Valid
                                                        values are ‘A’- Adds to, ‘N’ – No effect, ‘S’ –
                                                        Subtracts from. The default for this field is ‘N’.
                                                        This field will be set appropriately.
  FUT_EFFECT               Effect on FUT Gross          This 1 character required field defines what
                                                        effect the deduction has on Federal
                                                        Unemployment Tax. Valid values are ‘A’- Adds
                                                        to, ‘N’ – No effect, ‘S’ – Subtracts from. The
                                                        State currently does not use this functionality.
                                                        Accept default of ‘N’ for State of Connecticut.
  GTL_DPL_EFFECT           GTL/DPL Effect –             This 1 character required field is used to
                           Imputed Income               determine the effect Dependent Life & Group
                                                        Term Life have on imputed income. The valid
                                                        values are ‘D’ Add to Dependant Life, ‘G’ Add
                                                        to Group Term Life, and ‘N’ No Imputed Income
                                                        Calculated. The State will be processing
                                                        imputed income on employee life insurance, so
                                                        this field should be set as appropriate for each
                                                        deduction.
  WITHHOLD_FWT             Withhold FWT                 This is a 1 character required field that defaults
                                                        to ‘N’ for No. The other possible value for this
                                                        field is ‘Y’ for Yes. This field is dependent on
                                                        the DED_CLASS value. If the DED_CLASS for
                                                        a deduction is ‘T’ for Taxable Benefit, this field
                                                        should be set to ‘Y’. Otherwise, this field should
                                                        be set to ‘N’
  PARTIAL_DED_ALLO         Partial Deduction Allowed    This is a 1 character required field that defaults

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  W                                                     to ‘Y’ for Yes. The State of Connecticut does
                                                        not allow partial deductions. Therefore this field
                                                        will always be set to ‘N’.
  DED_ARREARS [R]          Deduction Arrears            This is a 1 character required field that defaults
                           Allowed                      to ‘Y’ for Yes. The State will only set this field
                                                        to ‘Y’ where the deduction code being defined
                                                        allows for arrears processing. All other
                                                        deductions will have this field set to ‘N’.
  STOP_DED_TERM            Stop Deduction at            This is a 1 character required field that defaults
                           Termination                  to ‘N’ for No.
  SEPCHK_DED [R]           Deductions taken from        This is a 1 character required field that defaults
                           Sep Check                    to ‘N’ for No. Although the State will potentially
                                                        use separate check functionality to pay items like
                                                        sick leave payout, no deductions should be taken
                                                        from those payments. Therefore, this field should
                                                        always be set to ‘N’.
  DED_YTD_MAX              Maximum Yearly               This is a numeric field will a length of 8.2. This
                           Deduction                    field will be used by specific deduction such as
                                                        United Way.
  GL_EXPENSE               GL Account # - Expense       This is a 35 byte character field that is used to
                                                        store the GL Expense number when using Non-
                                                        Commitment Accounting. Since the State is
                                                        using Commitment Accounting this field should
                                                        always be left blank.
  GL_LIABILITY             GL Account # - Liability     This is a 35 byte character field that is used to
                                                        store the GL Liability number when using Non-
                                                        Commitment Accounting. Since the State is
                                                        using Commitment Accounting this field should
                                                        always be left blank.
  CPP_EFFECT               Effect on CPP Gross          This is a 1 byte required field that can either be
                                                        set to ‘Y’ for Yes or ‘N’ for No. This is tied to
                                                        Canadian functionality and should be set to ‘N’.
  CUI_EFFECT               Effect on EI Gross           This is a 1 byte required field that can either be
                                                        set to ‘Y’ for Yes or ‘N’ for No. This is tied to
                                                        Canadian functionality and should be set to ‘N’.
  QIT_EFFECT               Effect on QIT Gross          This is a 1 byte required field that can either be
                                                        set to ‘Y’ for Yes or ‘N’ for No. This is tied to
                                                        Canadian functionality and should be set to ‘N’.
  QPP_EFFECT               Effect on QPP Gross          This is a 1 byte required field that can either be
                                                        set to ‘Y’ for Yes or ‘N’ for No. This is tied to
                                                        Canadian functionality and should be set to ‘N’.
  TRUE_T4GERS_EFFE         Effect on True T4 Gross      This is a 1 byte required field that can either be
  CT                                                    set to ‘Y’ for Yes or ‘N’ for No. This is tied to
                                                        Canadian functionality and should be set to ‘N’.


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  TRUE_RVGRS_EFFEC         Effect on True RL Gross      This is a 1 byte required field that can either be
  T                                                     set to ‘Y’ for Yes or ‘N’ for No. This is tied to
                                                        Canadian functionality and should be set to ‘N’.
  PAY_TAX_EFFECT           Effect on Payroll Tax        This is a 1 byte required field that can either be
                           Gross                        set to ‘Y’ for Yes or ‘N’ for No. This is tied to
                                                        Canadian functionality and should be set to ‘N’.
  T4A_EFFECT               Effect on T4A Gross          This is a 1 byte required field that can either be
                                                        set to ‘Y’ for Yes or ‘N’ for No. This is tied to
                                                        Canadian functionality and should be set to ‘N’.
  RV2_EFFECT               Effect on RL-2 Gross         This is a 1 byte required field that can either be
                                                        set to ‘Y’ for Yes or ‘N’ for No. This is tied to
                                                        Canadian functionality and should be set to ‘N’.
  ADD_TO_FICA_CRED         Add to FICA Credit           This 1 character required field defaults to ‘N’ for
  IT                                                    No. This value should always be accepted since
                                                        this functionality only ties to pension plan
                                                        deductions.
  DEDUCTION_FREQ
  PLAN_TYPE                Plan Type                    This 2 character required field will be populated
                                                        with the plan type of the particular deduction that
                                                        is being setup. The State of Connecticut will use
                                                        Plan Types
                                                        00 (General Deduction)
                                                        10, 11, 12, 15, 16 (Medical and Dental)
                                                        20, 21, 25 (Life)
                                                        45 (Savings Bond)
  DEDCD                    Deduction Code               This is a 6 character required field that contains
                                                        meaningful naming standard for deduction codes
                                                        that the State will use. The State will use
                                                        numbers and characters to ensure that deduction
                                                        codes are meaningful to users.
  EFFDT                    Effective Date               The effective date is a required field that defaults
                                                        to the system date. The State will always set this
                                                        value to ‘01/01/1901’.
  PAY_FREQUENCY            Pay Frequency                This record is a child of the DEDUCTION_TBL.
                                                        Therefore, there can be many rows on this table
                                                        to the one row on the DEDUCTION_TBL. Since
                                                        the State has four pay frequencies there will
                                                        always be four rows on this table for each
                                                        deduction code. One row will be set to ‘B’ for
                                                        Biweekly. One row will be set to ‘S’ for Semi-
                                                        Monthly. One row will be set to ‘M’ for
                                                        Monthly. One row will be set to ‘L’ for Special
                                                        Monthly.
  PAY_PERIOD1              First Pay Period             This is a 1 byte required field that indicates


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                                                        whether the deduction being setup is taken the
                                                        first pay period of the frequency defined in the
                                                        PAY_FREQUENCY field above. This field can
                                                        either be set to ‘N’ for No or ‘Y’ for Yes. This
                                                        field will be set appropriately for each deduction.
  PAY_PERIOD2              Second Pay Period            This is a 1 byte required field that indicates
                                                        whether the deduction being setup is taken the
                                                        second pay period of the frequency defined in the
                                                        PAY_FREQUENCY field above. This field can
                                                        either be set to ‘N’ for No or ‘Y’ for Yes. This
                                                        field will be set appropriately for each deduction.
  PAY_PERIOD3              Third Pay Period             This is a 1 byte required field that indicates
                                                        whether the deduction being setup is taken the
                                                        third pay period of the frequency defined in the
                                                        PAY_FREQUENCY field above. This field can
                                                        either be set to ‘N’ for No or ‘Y’ for Yes. This
                                                        field will be set appropriately for each deduction.
  PAY_PERIOD4              Fourth Pay Period            This is a 1 byte required field that indicates
                                                        whether the deduction being setup is taken the
                                                        fourth pay period of the frequency defined in the
                                                        PAY_FREQUENCY field above. This field can
                                                        either be set to ‘N’ for No or ‘Y’ for Yes. This
                                                        field will always be set to ‘N’ since the State
                                                        does not have any pay frequencies that require
                                                        four periods in one month.
  PAY_PERIOD5              Fifth Pay Period             This is a 1 byte required field that indicates
                                                        whether the deduction being setup is taken the
                                                        third pay period of the frequency defined in the
                                                        PAY_FREQUENCY field above. This field can
                                                        either be set to ‘N’ for No or ‘Y’ for Yes. This
                                                        field will be set appropriately for each deduction.
                                                        This field will always be set to ‘N’ since the
                                                        State does not have any pay frequencies that
                                                        require five periods in one month.

Dependencies and Timing:
    UNION_TBL
    DED_SUBSET must be set up prior to setting up DEDUCTION_TBL

Testing Considerations:
    Validate that an employee processes correctly when he/she does not have enough gross pay to
       cover all deductions.
    Validate that each deduction has the proper Tax classification –‘After Tax & Before Tax’
    Ensure that any deductions that affect the FICA gross are working properly.


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   State of Connecticut                Deductions
   CORE-CT Project


            Validate that any deductions with a maximum amount on the deduction table function properly.
            Ensure that no deductions are taken from separate checks.
            Check that deductions are being taken for the appropriate pay periods within each frequency.
            Validate that employee deductions are processed correctly where the employee has multiple
             active jobs.

Assumptions:
    The MSA deduction priority numbers that exist today will be used as the basis for defining
      deduction priority in HRMS.
    The State will create different Union Dues deduction codes for each Union Code and
      classification (i.e. dues versus fees).
    The State does not process a payroll tax for unemployment (FUT or SUT). The State is required
      to track SUT and FUT balances.
    The State has only four pay frequencies; biweekly, semi-monthly, monthly, and special monthly.
    The State will allow for partial deductions in limited situations.
    Deductions will not be taken from payments that are identified as separate checks on the Paysheet
      or Additional Pay pages.
    The Year to Date Deduction Maximum field will be used to enforce such items as the united way.
    The State is using Commitment Accounting.
    The Comptroller’s Office along with the Benefits team will define functionality for setting up partial
             deductions, arrears processing, deductions taken from separate a check and stopping a deduction at
             termination.
            The State will allow for arrears processing.
            Each agency in the State has one holding account for agency recovery

Revisions
Date:
Comments:


Name:
Changes Needed:

Reasons:


Input Provided By:
Name                                                           Title, Department
Nancy Ribes                                                    Payroll Team Lead, OSC
Ryan Oakes                                                     Configuration Team Lead, Accenture
Josh Woodrum                                                   Payroll Team Lead, Accenture




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                                             SIGNOFFS

Configuration Team


            _________________________    _________________________

            _________________________    _________________________


Configuration Team Leads


            _________________________    _________________________
              Ryan Oakes                Ron Kuehner

Module Team Leads


            _________________________    _________________________


Team Leads


            _________________________    _________________________
              Rajeev Sharma                   Anne North


            _________________________
              Sue Martin




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