PR> Computer Checks
Summary
Deductions are calculated in the Payroll module based on a hierarchy. Within each phase of the hierarchy, deductions are calculated in alphabetical order of the deduction code. This document outlines the additional deduction hierarchy criteria required by the State of Massachusetts.
Please refer to the Payroll Deduction Hierarchy topic for more information about the standard deduction hierarchy.
MA State-specific Details
Minimum salary deductions work on a per check basis in Springbrook. Each check calculates the "Percent of Gross" deductions using the YTD or annualized amount of that check. For example:
Deduction 1MATRS has a minimum salary of $1000 and is Percent of Gross 2%.
Employee has one check in the batch for $600 and another for $1000.
Standard Deduction Calculation:
Check #1 $600 (check value) - $1000 (minimum salary limit) = -$400 (will be set to $0)
Check #2 $1000 - $1000 = $0
Check #1
$0 * 2% = $0
Check #2
$0 * 2% = $0
Deduction Amount = $0
Massachusetts requires the minimum salary be applied to multiple checks when an employee has been paid on multiple checks in the same batch. When Massachusetts is selected in SS Setup (SS> Utilities> System Setup> Organization tab> State field), the Payroll module will be updated to reflect these calculation requirements.
When an employee has multiple checks in the same batch, deductions will be applied in the order from lowest check amount to highest check amount. As the calculation moves from lowest to highest, the amount of the prior, lower-amount check will be used in the calculation of the next check. For example:
Deduction 1MATRS has a minimum salary of $1000 and is Percent of Gross 2%.
Employee has one check in the batch for $600 and another for $1000.
Massachusetts Deduction Calculation:
Check #1 $600 (check value) - $1000 (minimum salary limit) = -$400 (will be set to $0)
Check #2 $1000 - $400 (Remainder of the minimum salary after 1st check)= $600
Check #1
$0 * 2% = $0
Check #2
$600 * 2% = $12
Deduction Amount = $12