How do you know which deductions are close to their limit?
How do you know that a deduction has reached its limit and is no longer being deducted from an employee's check?
One way to keep an eye on recurring deductions that have a limit, is to run the Employee Master File Report of Other Deductions.
Run this report after each payroll is run and updated to the General Ledger. From this report, you will see which deductions are still in the Employee Master File and what the cumulative amount is. By keeping these reports, you are able to see which deductions are getting close to being "paid" or reaching their limit. Note that it is the Update to the General Ledger that updates the cumulative amount and also removes the one-time deductions and the recurring - with limits that reach the maximum limit.
Another way of knowing that a deduction has dropped off because the deduction reached the maximum limit is to go to the last check record that the deduction was taken from and see the Recurring Limit and Cumulative amount that is stored with the check record. Although the cumulative amount in the check record does not reflect this check's deduction line, when the "calculated amount" of the deduction line PLUS the cumulative amount equal the Recurring Limit, the deduction is going to be removed from the Employee Master File when the General Ledger Update is run.
- Locate the check record.
- Click the Other Deductions tab of the check record.
- Click on the deduction (garnishment) line.
- If the garnishment line was something that was imported from the Employee Master File, you will see the Recurring Limit and the Cumulative total that was in the system prior to this check record. (Remember the cumulative amount in the check record won't reflect this check's deduction line). When the "calculated amount" of the deduction line plus the cumulative amount equal the Recurring Limit, the deduction will be removed from the Employee Master File when the General Ledger Update is run.