PrePay Deduction Setup

Purpose: Use this document as a reference for how to setup PrePay deductions in ctcLink.

Audience: Benefits Administrators and Payroll Administrators.

You must have at least one of these local college managed security roles:

  • ZC Benefits Maintain PrePay
  • ZC Payroll Data Maintenance
  • ZD Benefits PrePay Inquiry
  • ZD HR Local Config Vw
  • ZZ HR Local Configuration
  • ZZ Payroll Data Maintenance
  • ZZ Payroll Processing
  • ZZ SS Payroll

If you need assistance with the above security roles, please contact your local college supervisor or IT Admin to request role access.

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: NavBar > Navigator > 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 hire.

NOTE: PrePay deductions are taken based on the PrePay calendar set up schedule.  PrePay payments to the vendor are sent when the deduction is not withheld from the employees paycheck or the employee is not paid but still in an active HR Status.

There are 3 key parts to setting up the PrePay Deductions:

  1. Verify PrePay Deduction Mapping
  2. Create the PrePay Calendar
  3. Assign the PrePay Pay Cycle to the employee

PrePay Deduction Setup

Part 1 - View PrePay Deduction Mapping

Navigation:  Set Up HCM > CTC Custom > PrePay Deduction Mapping

  1. The PrePay Deduction Mapping search page displays.
  2. On the Find an Existing Value tab, enter your company code.
  3. Select the Search button.
  1. The PrePay Deduction Mapping page displays.
  2. 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, contact ERP Support to have it added to the Mapping Table.
PrePay Deduction Mapping

Part 1 is now complete.

Part 2: Create the PrePay Calendar

You must have at least one of these local college managed security roles:

  • ZC Benefits Maintain PrePay
  • ZC Payroll Data Maintenance
  • ZD Benefits PrePay Inquiry
  • ZD HR Local Config Vw
  • ZZ HR Local Configuration
  • ZZ Payroll Data Maintenance
  • ZZ Payroll Processing
  • ZZ SS Payroll

If you need assistance with the above security roles, please contact your local college supervisor or IT Admin to request role access.

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.

If you don’t want the PrePay calendar to be applied to an employee, assign a Pay Cycle that does not have an associated pay schedule (ex: 06A) to that individual employee.

Navigation:  Set Up HCM > CTC Custom > PrePay Calendars

  1. The PrePay Calendars search page displays.
  2. Select the Add a New Value button in the upper right-hand corner of the search window.
  3. Enter the Company code.
  4. Enter the Calendar ID you want to create.
  5. Select the Add button.
Add a New Value tab
  1. The PrePay Calendar page displays.
  2. Enter the Description of the Pay Calendar (ex: PrePay Calendar).
  3. In the PrePay Calendar Deductions section, select the Plan Type and Deduction Code you need to attach to this calendar.
  4. NOTE:  You can assign all plan types and deduction codes to one calendar.
  5. Select the [+] Add a Row button to add another deduction code to this calendar until all deduction codes are added.
  6. Select the Save button.
PrePay Calendar tab
  1. Select the PrePay Schedule tab.
  2. The PrePay Schedule tab displays.
  3. 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, i.e.:  

  • Pay Cycle S2 could be used for all Full-Time Faculty
  • S6 could be used for all Part-Time Faculty  

Each college has already established Pay Cycle codes so use those or create new ones as needed.  Pay Cycles will determine the Schedule and PrePay Factor for the row you are creating.  

  1. Enter the Effective Date (effective date should align with the beginning of a pay cycle).
  2. 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).
  3. 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).
  4. Select the Save button.

NOTE: You can set up multiple Pay Cycles with PrePay Schedules on one PrePay Calendar.  

In the example below, there are five pay cycle data rows created and used by Company 070, which are as follows:  

  • NO for no prepays
  • NT for non-traditional faculty
  • S0 for separating employees
  • S2 for full-time faculty
  • S6 for part-time faculty  

If needed, additional pay cycles/prepay schedules can be created for an assignment to employees whose prepay cycle/schedule differs from the established ones.   

PrePay Schedule tab

NOTE: In the example below, row 4 of 5 is for Pay Cycle S2 (FTF), which will apply the one-time, lump sum PrePay deduction on the 05B payroll.  This prepaid deduction amount will cover 6 pay periods starting with 6A payroll and ending on 8B payroll.

PrePay Schedule tab

NOTE: You can set up more than one PrePay Schedule on the PrePay Calendar.

In the example below, Row 5 of 5, Pay Cycle S6 (PTF) will apply the one-time, lump sum PrePay deduction on the 05B payroll (covering 3 pay periods) and another lump sum Prepay deduction on the 06A (covering 4 additional pay periods).  The total prepaid deduction amount in this case will cover 7 pay periods starting with 6A payroll and ending on 09A.

PrePay Calendar page - PrePay Schedule tab highlighting more than one schedule on a calendar

NOTE:  When updating an existing schedule for a previously established Pay Cycle, override in Correct History mode. Update the schedule and prepay factor details on existing data row instead of adding a new effective dated data row.

Example:  To update S6 pay cycle’s schedule to deduct on 05B a lump sum that will  cover 7 pay periods, override the data set up for S6 pay cycle as shown below.

PrePay Calendar page - PrePay Schedule tab highlighting pay cycle update using Correct History

This completes Part 2.

Part 3: Assign the PrePay Pay Cycle to the Employee

You must have at least one of these local college managed security roles:

  • ZC Benefits Maintain PrePay
  • ZC Payroll Data Maintenance
  • ZD Payroll Inquiry
  • ZD Benefits PrePay Inquiry
  • ZZ Payroll Processing
  • ZZ Payroll Data Maintenance
  • ZZ SS Payroll

If you need assistance with the above security roles, please contact your local college supervisor or IT Admin to request role access.

Navigation:  Payroll for North America > CTC Custom > Employee PrePay

  1. The Employee PrePay search page displays.
  2. Enter an Empl ID.
  3. Enter the Company code.
  4. Select the Search button.
  1. The Employee PrePay page displays.
  2. From the PrePay Override tab, enter the Pay Cycle associated with the PrePay for this employee.
  3. Select the Save button.
Employee PrePay page - PrePay Override tab

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 Long Term Disability deduction from being applied as a prepay deduction.

  1. In the PrePay Override tab, select the Plan Type and Deduction Code where the override is to be applied.
  2. To prevent the specific deduction from being applied, select the Calendar ID of 00 "Bypass Prepay Process".
  3. Select the Save button.
  4. Based on this override, all prepay deductions that are tied to the S2 pay cycle will be applied for this employee except the Long Term Disability deduction.
Employee PrePay page - PrePay Override tab

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 PrePay Deductions" process needs to be run during the payroll processing day, for the prepay deductions to reflect on the paycheck.

The process to setup prepay deductions is now complete.

End of procedure.

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