Summary

The K. % of net excl non-tax allow method calculates the amount as a percentage of residual net earnings excluding non-taxable allowances. You can use this method in non-taxable deductions only.

Note: Residual net earnings is the "running total" of net earnings at the point when the deduction is made in the pay calculation process.

If you select this calculation methods, then you should:

• Set the Details (i) tab | Rank deduction field to "Yes"
• Specify a unique value in the Details (i) tab | Rank field.

  Note: If you do not specify a Rank value or if you specify a Rank value that is used by another deduction, then the order in which PayGlobal processes the deductions is unpredictable.

Calculation

PayGlobal uses the following steps to calculate the transaction total:

1. Derive the value of Rate as entered in the transaction. Generally rate code '0' and a rate unit used for this transaction.
2. Derive the Quantity using:

   Quantity = 'Running total' of net earnings excluding non-taxable allowances at the point when the deduction is made in the pay calculation process.

3. Calculate the Transaction total for this transaction using:

   Transaction total = Quantity * (Rate / 100).

4. Obtain the value of Maximum amount as set in the Deduction | Details (i) tab.
5. The transaction total used is:

   The lesser of Transaction total and Maximum amount.

6. Obtain the value of Min nett pay as entered in the Deductions | Details (i) tab.

Is the transaction total more than the nett pay?

Calculate the nett pay using:

Nett Pay = Min nett pay / 100

If the transaction total is more than the nett pay, the setting of the Full amount only field in the Details (ii) tab page of the deduction takes effect.

• Yes

  Transaction total is '0'. The full amount is only deducted if the transaction total can be paid.

• No

  The transaction total is recalculated using:

  Nett Pay = Nett pay * (Min nett pay / 100)

  This transaction total is rounded to the nearest dollar.

See also

Deduction Calculation Methods