PrePay Deduction Setup - 13i
Purpose: Use this document as a reference for how to setup PrePay deductions in ctcLink.
Audience: Payroll Administrator
NOTE: PrePay deductions are taken based on the PrePay calendar set up schedule. PrePay payments to the vendor are sent when the deduction (as long as it is set up in the PrePay calendar) is not withheld from the employees paycheck.
There are 3 key parts to setting up the PrePay Deductions, 1. Setup/verify PrePay Deduction Mapping, 2. Create the PrePay Calendar and 3. Assign the PrePay Pay Cycle to the employee.
The Pre-Pay setup process is done typically for employees who are entitled to health benefits coverage for the full year, but only receive a paycheck for part of the year. This process allows for a one-time lump sum deduction using the pre-pay deduction code associated with the original deduction code. On the paycheck where the one-time pre-pay deduction is taken, you will see the regular deduction amount plus the pre-pay lump sum deduction amount. After that, you will not see any deductions until the pre-pay balance is reduced to zero, at which point, the original deduction will begin automatically.
All employees should have a “Pay Cycle” assigned to them, which you can see in the Employee PrePay page (Navigation: Main Menu Payroll for North America CTC Custom Employee PrePay). The Pay Cycle should be assigned to the employee as part of the New Hire process, but can also be done after that.
NOTE: PrePay deductions are taken based on the PrePay calendar set up schedule. PrePay payments to the vendor are sent when the employee has an existing pre-pay balance for a deduction (as long as it is set up in the PrePay calendar).
Part 1: Setup/Verify PrePay Deduction Mapping
Navigation: Main Menu > Set Up HCM > CTC Custom > PrePay Deduction Mapping
- The PrePay Deduction Mapping table should already have deduction codes applied. Check to make sure the deduction code you need to add to your PrePay Calendar is included in the PrePay Deduction Mapping. If not included, select the Correct History button on this page to edit the existing list with the effective date of 12/31/2014.
- Select the [+] Add a Row button to add the Plan Type and Deduction Code
- Select the Save button.
Part 2: Create the PrePay Calendar
Navigation: Main Menu > Set Up HCM > CTC Custom > PrePay Calendars
NOTE: It is likely you will only need one PrePay Calendar for the year. One PrePay calendar can accommodate many Pay Cycles/PrePay Schedules. PrePay calendars do not need to be recreated each year. If an employee has a Pay Cycle assigned then the PrePay calendar will be applied automatically each year based on the PrePay Calendar Schedule.
- Select the Add a New Value tab and enter the Company and Calendar ID you want to create, then select the Add button.
- Enter the Description of the Pay Calendar (ex: 2017 PrePay Calendar).
- Enter the Effective Date of the calendar (use 12/31/2014 to ensure all eligible deduction codes are available).
- In the PrePay Calendar Deductions section, select the Plan Type and Deduction Code you need to attach to this calendar.
NOTE: You can assign all plan types and deduction codes to one calendar.
- Select the [+] Add a Row button to add another deduction code to this calendar until all deduction codes are added.
- Select the Save button.
- Select the PrePay Schedule tab.
- Enter the Pay Cycle
NOTE: Pay cycles have been established outside of ctcLink, your benefits administrator can provide the list. Pay Cycles are used to apply a prepay calendar schedule to an individual employee or group of employees, ie: Pay Cycle F1 could be used for all Full Time Faculty; C1 could be used for all Classified employees. Each college has already established Pay Cycle codes so use those or create new ones as needed. Pay Cycles will determine the Schedule an PrePay Factor for the row you are creating.
- Enter the Effective Date (effective date should align with the beginning of a pay cycle)
- In the PrePay Calendar Schedules section, enter the Schedule (this is the pay period in which the one time, lump sum PrePay deduction will be taken for the Pay Cycle assigned to this calendar)
- Enter the PrePay Factor (this is the number of pay periods that the one time, lump sum PrePay deduction will cover for the Pay Cycle assigned to this calendar).
- Click Save.
NOTE: You can set up multiple Pay Cycles with PrePay Schedules on one PrePay Calendar. In this example there are two pay cycle rows, but you could add a row for each pay cycle in your company. This will allow you to only have to create one Pay Calendar for the year. In this example, row 1 of 2 is for Pay Cycle P1, which will apply the one time, lump sum PrePay deduction on the 06A, this amount will cover 2 pay periods.
NOTE: You can set up more than one PrePay Schedule on the PrePay Calendar.
On Row 2 of 2, Pay Cycle S2 will apply the one time, lump sum PrePay deduction on the 05B payroll, this amount will cover for 5 pay periods.
Part 3: Assign the PrePay Pay Cycle to the Employee
Navigation: Main Menu > Payroll for North America > CTC Custom > Employee PrePay
- Enter an Empl ID and select the Search button.
- Enter the Pay Cycle associated with the Pre-Pay for this employee
- Click the Save button.
NOTE: The “Create Pre Pay Deductions” process needs to be run during the payroll processing day (step 24), for the pre-pay deductions to reflect on the paycheck.
NOTE: You also have the option to override the prepay deductions in the Employee PrePay Deduction Override section. You might elect to override a specific deduction for the employee if that deduction does not need to be included in the prepay setup.
Below is an example of a prepay override. In this example, the override is to prevent the Uniform Classic deduction from being applied as a prepay deduction.
- In the PrePay Override tab, select the Plan Type and Deduction Code that the override is to be applied.
- To prevent the deduction from being applied completely, select the Calendar ID of 00 "Bypass Prepay Process".
- Click Save.
Based on this override, all prepay deductions that are tied to the S2 pay cycle will be applied for this employee except the Uniform Classic deduction.
To prevent any prepay deductions from taking place for a specific employee, you can select the PrePay Calendar "NO PREPAY" in the Employee PrePay Deduction Override section.
NOTE: You can also apply a different prepay calendar to the employee prepay record by selecting the calendar that you wish to override with.
The "Create Pre Pay Deductions" process needs to be run during the payroll processing day, for the pre-pay deductions to reflect on the paycheck.