Defining deduction order

You can enable the Use Deduction Order feature during payroll configuration. Deductions are processed in a user-defined order when the Calculate Payments action is run.

This feature is only available to organizations that have Federal features enabled.

  1. Select Payroll Administrator > Setup > Payroll Configuration.
  2. Open a country configuration.
  3. On the Payroll tab, select the Use Deduction Order check box.
  4. Click Save.
  5. Select Administrator > Set Up > Payroll > Deduction Structure or Payroll Administrator > Setup > Deduction Structure.
  6. On the Deduction Codes tab, right-click a deduction structure and select Update.
  7. On the Processing Rules tab, in the Order field, specify a numeric order between 1 and 99 for each deduction code.
    The same order number must be used for all garnishment type deductions.

    The same order number must be used for linked deductions and matched deductions.

  8. In the Priority field, assign a priority to prioritize within the order.
  9. Click Save.
    When a payroll cycle is run, when processing Gross to Net:
    • The available wages are reduced by the Calculate Payments action based on the order and priority defined on the deduction code.
    • Arrears are created based on the Deduction Code Arrears option when deductions exceed available net.