Payroll>>Process Payroll>>Cycle Changes
Deduction Cycle Change: Limit a Deduction
A "Limit Deduction" cycle change refers to a cap or limit on the amount that can be deducted from an employee’s salary over a certain number of pay periods.
To ensure that transactions are applied to subsequent payroll cycles beyond the initial entry, the deduction payroll code must be flagged as regular.
Cycle Changes: Limit Deduction
Simply enter the first letter in each field to access the drop-down lists for easy selection.
Cycle Change 1 indicates to the payroll:
- That pay cycles are to be limited (Y = Yes);
- The number of pay cycles to be limited is 12 i.e. after 12 pay cycles are run the payroll will stop processing the deduction.
- The number of pay cycles that have already been processed (in the above example it is 6). Therefore the payroll only has 6 more pay cycles to process before the deduction is stopped.
Cycle Change 2 - the monthly deduction amount is $1000.
Cycle Change 3 - the PAYEE to which the deduction is being paid.
Cycle Change 4 - the ACCOUNT to which the deduction is being applied.
The payroll will stop processing the employee’s deduction once it has reached the limited number of pay cycles
Do NOT enter both cycle change entries of LIMIT CYCLES and GOAL at the same time. Only ONE entry should be used.