Configuration Approach - Deductions



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. |

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) |

| | |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 Payback CD |This required one character translate field 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_PAYBK |Maximum Arrears Payback |If the MAX_PAYBACK field is set to ‘Y’ this 8.2 required numeric |

| | |field should be set to the correct flat amount. This field will be |

| | |set appropriately for each deduction. |

|MAX_ARREARS_FACTOR |Maximum Payback – Factor x Reg Ded |If the MAX_PAYBACK field is set to ‘F’ this 1.2 numeric field |

| | |should be set to correct factor. This field will be set |

| | |appropriately for each 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_SENSITIVE |Time Sensitive |This one character field is used for Federal 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’ – 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 – Imputed Income |This 1 character required field is used to 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_ALLOW |Partial Deduction Allowed |This is a 1 character required field that defaults 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 Allowed |This is a 1 character required field that defaults 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 Termination |This is a 1 character required field that defaults to ‘N’ for No. |

|SEPCHK_DED [R] |Deductions taken from Sep Check |This is a 1 character required field that defaults 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 Deduction |This is a numeric field will a length of 8.2. This 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_EFFECT |Effect on True T4 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_RVGRS_EFFECT |Effect on True RL 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’. |

|PAY_TAX_EFFECT |Effect on Payroll Tax 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’. |

|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_CREDIT |Add to FICA Credit |This 1 character required field defaults to ‘N’ for 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 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.

• 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 has only four pay frequencies; biweekly, semi-monthly, monthly, and special monthly.

• The State will not allow for partial deductions.

• 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.

|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 |

| | |

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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