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Administrator Guide
Last Updated: 2023-06-23
Example: Set Up a Deduction to Recoup an Outstanding Balance on Termination (CAN)

Example: Set Up a Deduction to Recoup an Outstanding Balance on Termination (CAN)

This example illustrates how you can set up a deduction that recoups the balance of an outstanding flexible payment and deduction option when you terminate an employee.
Global Modern Services (GMS) enables construction employees in Canada to request loans to purchase protective equipment like safety boots, which they can then repay over multiple pay periods. As a payroll administrator, you want to set up a deduction for equipment loans that recoups its outstanding balance from employees who are terminated during the repayment period.
  • Create a deduction named
    Flex Deduction - Equipment Loan
     to use for flexible payments and deductions. See Steps: Create Deductions.
  • Security:
    Set Up: Payroll
     in the Core Payroll functional area.
  1. Access the
    Create Conditional Calculation
     task.
    1. Enter these values:
      Field
      Value
      Name
      FPaDO Recoup on Termination
      Category
      Payroll
    2. In the
      Calculation
       table, enter these values:
      Field
      Value
      Order
      a
      Condition
      Worker is Terminated as of Sub Period End Date
      Result
      Flexible Payment - Outstanding Balance
    3. In the
      Default Response
       field, enter
      Flexible Deduction Amount
      .
    4. Click
      OK
       and
      Done
      .
  2. Access the
    Edit Deduction
     task.
    1. From the
      Deduction
       prompt, select
      Flex Deduction - Equipment Loan
      .
    2. Click
      OK
      .
    3. In the
      Calculation
       field, enter
      FPaDO Recoup on Termination
      .
    4. Click
      OK
       twice, then click
      Done
      .
  3. Access the
    Maintain Flexible Payment and Deduction Options
     task.
    1. From the
      Country
       prompt, select
      Canada
      .
    2. Click
      OK
      .
    3. Add a row and enter these values:
      Field
      Value
      Payment/Deduction Type
      Equipment Loan
      Deduction
      Flex Deduction - Equipment Loan
    4. Click
      OK
       and
      Done
      .
After running payroll, use the
View Flexible Payments and Deductions
 report confirming that the balance recouped correctly.