EPY: Garnishment Disposable Earnings Not Calculated Correctly if Employee has Low Earnings and Arrears for a Deduction Allowed in the Disposable Earnings Definition
Last updated on DECEMBER 18, 2015
Applies to:PeopleSoft Enterprise HCM Payroll for North America - Version 9 to 9.1 [Release 9]
Information in this document applies to any platform.
Arrears deduction amounts are incorrectly being taken into consideration for the calculation of a garnishments disposable earnings (DE):
- if the actual deduction is setup to be included in the DE
- even if there is not enough net income to deduct the arrears deduction amount
- Employee has a garnishment set up with Deduction 'ABC' defined as a 'Deduction Allowed in DE Calculation'; and
- Deduction 'ABC' is defined on the Deduction Table Process Page with 'Partial Deduction Allowed' and 'Deduction Arrears Allowed'; and
- On a previous payroll, the employee received insufficient funds to deduct the full amount for Deduction 'ABC' which resulted in the uncollected amount (e.g., $50) placed in arrears.
When the program calculates the employee's Disposable Earnings, the employee's arrears amounts are incorrectly applied as if the employee had sufficient funds to withhold the arrears amount for Deduction 'ABC'. As a result, the Disposable Earnings are understated (by $50 in the above example, i.e., the employee's Disposable Earnings were incorrectly calculated as $950 instead of $1,000).
Note: Warning message 008210 - 'The employee's paycheck may need to be manually processed in certain situations.' may also be issued.
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