Summary
We have our medical deduction code setup to take current deduction plus one arrears. This is setups is completed within Payroll by navigating to: Payroll > Administration > Setup > Structure > Deductions > Double click to open the deduction > Processing Rules tab > Arrears section. We have the box "Process Arrears" checked and the "Maximum Arrears to Process" set to 1.
We have learned via case CS1165388, that "For deductions created through benefit enrollment, the arrears process rule applies to each benefit enrollment timeframe.". This creates a problem.
We had an employee out on leave and her medical deduction went into arrears twice. While on leave, she made an update to her benefits which resulted to different values on the Employee Deduction Field. The values went from 3 to 4. However, the deduction code itself did not change. She was in the same benefit plan, with the same deduction code. She simply changed her election option, which changed the values on the Employee Deduction Field. The system took one from each time frame (3 and 4), plus the current deduction. That resulted in 2 arrears, plus the current for a total of 3 deductions for the same deduction code being withheld from their pay.
In order to resolve this issue, the arrears process rule should NOT look at the benefit enrollment timeframe. Instead, it should look at the deduction code itself and adhere to the Arrear Rules setup at the Deduction Code level.
Business Impact
Employee had too much withheld for her medical deduction based on the arrears policy we have established. The payroll setup and our company policy both state, one arrear and one current deduction within a pay period. Given the complexity added to the arrears process as it relates to benefit deductions, the employees pay check was impacted negatively.
Workaround
We were advised to check arrears whenever there's a benefit update. Updates happen frequently, so this will add time to an already lengthy payroll process.
