Working with targets for employee deductions

Targets allow you to set a maximum amount to an employee's deduction. When the payroll deduction is taken, the remaining target amount is reduced. When the target reaches zero, the deduction is no longer taken from the employee.

Targets:

  • are often used for low-interest employee loans, charity deductions, and so on.
  • carry over into future calendar years until complete. They do not zero out with a year-end signal.
  • become effective as of the payroll submission on which it is entered and does not factor in previous year-to-date values for the deduction code.

When a target is in place, three fields are used to control the deduction: Permanent Value, This Pay Only and Remaining Target.

Every time the deduction is taken on a payroll, the Remaining Target field decreases by the amount shown in the Permanent Value field unless a This Pay Only value is entered. This gives you a pay-by-pay update on how much is owing on the deduction.

If a This Pay Only value is present, the Permanent Value is not available for this pay only, and the This Pay Only value is deducted from the employee's earnings.

The Remaining Target value is current as of the last processed payroll. (What you see is what is left after the last payroll is processed.) The displayed value for the target does NOT reflect the amount that is SCHEDULED to be deducted on the current pay.

Tasks

  1. Click the Pay Period menu and click the Enter button for the pay period you want to work with.
  2. Open the Deductions & Contributions Cycle page.Closed From the Company menu, select Cycles > Deductions & Contributions Cycle. and ensure the particular deduction code has check mark to deduct on the preferred pay cycle of the month. For example: Cycle 1, Cycle 2 or Cycle 3 and so on.

  3. Ensure the proper Deduction and Contribution Cycle is selected, while creating a pay period.

  4. Open the Deductions & Contributions page.Closed From the Payroll menu, select Regular Payment > Deductions & Contributions.
  5. Select the employee from the Employee List.

  6. Select one of the options to control the targeted deduction:

    • To start a targeted deduction - Enter a Remaining Target value to be reached for the deduction, and enter a Permanent Value that the employee pays when the deduction is requested.

    • To change the payment for the current pay only - Enter the amount in the This Pay Only field.

    • To change the regularly deducted amount permanently - Enter a new amount in the Permanent Value field.

    • To take the deduction when it's not requested on this pay - Enter the regular amount in the This Pay Only field (useful if the deduction needs to be taken on an extra run).

    • To decrease or increase the amount of the target - Change the Remaining Target value to a different dollar value.

      Note:

      • The Remaining Target value is current as of the last processed payroll. The Remaining Target value does NOT reflect the decrease that happens when the current payroll is processed.

      • If your processed payroll is cancelled, review the latest Payroll Register to confirm the correct remaining target amount displays. The amount may be incorrect as Powerpay does not recognize a cancelled deduction.

    • To stop the targeted deduction for the current pay - Enter a This Pay Only value of 0.00.

    • To stop the targeted deduction for a period of time - Enter a Permanent Value of 0.00. The Remaining Target value remains, and you can reactivate the deduction again at a later time by entering a dollar value in the Permanent Value field. Record the regular Permanent Value for when you start the deduction again.
    • To stop the target but continue to take the deduction - Completely DELETE whatever is in the Remaining Target field. Enter Complete or 0.00, and verify that the Permanent Value is what the employee is to pay regularly for the deduction.

    • To stop employee deductions permanently before the target is fulfilled - If, for some reason, you want to stop an employee's payments to a deduction that has a remaining target value, you must mark the target value as complete prior to it actually being completed. Enter a Remaining Target value of 0.00 and a Permanent Value of 0.00.

    • To start a target again - Change the Remaining Target value (could be Complete or 0.00) to the new target value. Be sure that a Permanent Value is present and that the code is included in the appropriate Deductions and Contributions cycle.
  7. Click Save.

If a target has been reached and the deduction needs to be continued indefinitely, the target needs to be cleared.

  1. Click the Pay Period menu and click the Enter button for the pay period you want to work with.
  2. Navigate to the Deductions & Contributions page.Closed From the Payroll menu, select Regular Payment > Deductions & Contributions.
  3. Select the employee from the Employee List.
  4. Clear the value in the Remaining Target field (the field should be blank).
  5. Verify that the Permanent Value for the deduction is correct.
  6. Verify that the deduction is requested for the Deductions and Contributions Cycle.
  7. Click Save.

After the Remaining Target is reached, the word COMPLETE appears in the Remaining Target field. You have two options:

  • Remove the permanent value for the deduction:

    • You will no longer receive warning messages saying that the deduction target has been reached, and
    • The deduction will no longer be taken from the employee.
  • Delete the entry COMPLETE from the field.
    • The deduction will continue to be taken based on the entry in the Permanent Value field and the pay cycle set-up.

See also