Costpoint Online Help

Contents of the Manage Deduction Group Limits Screen

Use the fields and options to configure the Manage Deduction Group Limits screen.

Contents

Field Description
Deduction Group

Enter a code to represent the deduction group.

Description

Enter a description for the deduction group code.

When the Group Limit is reached, calculate the remaining deduction/contribution amounts by:

From these options, select how the Compute Payroll screen will calculate deductions/contributions when the employee reaches the deduction limit.

The following will be applied by Compute Payroll process:

  • Contributions are always calculated after deductions even for the Priority option. If a contribution’s priority is greater than a deduction, the deduction will still be taken before the contribution.
  • When the deduction group reaches the limit, the deductions will be calculated first and if the limit is reached then the contributions will be set to zero. 
  • The application will not calculate contributions until all deductions have been calculated. 
  • The application will apply limits to the deductions before calculating the contributions.
Field Description
Priority

Select this option to calculate the remaining deduction/contribution amount based on the Priority specified in the Manage Deduction Group Limit screen until the group limit is reached.

Percentage

Select this option to prorate the remaining deduction/contribution amount across the applicable deductions/contributions.

Equally

Select this option to calculate the remaining deduction/contribution amount by dividing the balance equally over the number of deductions/contributions. Note that if the resulting deduction/contribution amount is greater than the intended amount, then the intended amount will be used.

Example

Step 1:

Calculated Amount Percentage Group Limit Balance Paycheck Amount
Deduction DEDA 40.00 0.2500 200.00 50.00
Deduction DEDB 50.00 0.2500 200.00 50.00
Contribution 401K 150.00 0.2500 200.00 50.00
Contribution DEDB 300.00 0.2500 200.00 50.00
TOTALS 540.00 1.0000 200.00

Since the amount for the DEDA deduction would be over the calculated amount, it should be reduced to the new amount (see Step 2 below) and subtracted from the balance. The balance should then be divided equally between the remaining deductions.

Step 2:

Calculated Amount Percentage Group Limit Balance Paycheck Amount
Deduction DEDA 40.00 N/A N/A 40.00
Deduction DEDB 50.00 N/A N/A 50.00
Contribution 401K 150.00 0.2500 110.00 50.00
Contribution DEDB 300.00 0.2500 110.00 50.00
TOTALS 540.00 1.0000 200.00
Set Group Limits by

Select an option on how to group limits for new records on the Manage Deduction Group Limits screen:

  • Date Range: Select this option to set one group limit for a date range.
  • Age and Date Range: Select this option to set multiple group limits for employee age ranges.
Warning: You will not be able to change the setting for existing records. Once you save the record, you will no longer be able to change the selected option.

Setup Example

You wish to set 401K and catch-up deduction ranges for employees based on their ages for a particular calendar year or date range. You will need to:

  1. Add a new record on the Manage Deduction Group Limits screen and s elect the Age and Date Range option .
  2. Enter the year's start and end dates in the Effective Dates subtask.
  3. Click the Group Limits by Age subtask link and enter the age ranges and the limit for each age. If the employee's age falls within the age range during the dates set in the Effective Dates subtask record, the deductions linked to the deduction group will not be withheld once the Group Limit has been reached.
From Age * To Age * Group Limit

0

49

23,500

50

59

31,000

60

63

34,750

64

99

31,000

If you do not want to have limits by age, you can select the Date Range option and set one Group Limit amount for all employees for a date range on the Effective Dates subtask.

Subtask

Subtask Description
Effective Dates Use this subtask to enter a starting and ending date for the deduction group limit.