One of the considerations for weekly or biweekly pay groups that use scheduled amounts is the possibility of 53 weekly or 27 biweekly pay dates in some years. Scheduled amounts can include automatic deductions or generated earnings.
If there are automatic deductions or generated earnings, or both, associated with those weekly or biweekly pay periods, an additional pay date could create an overpayment by both employer and employees because scheduled deductions would be applied as usual to the extra pay date for the year.
To avoid that possibility, you can specifically exclude scheduled amounts on the 53rd or 27th pay date when applicable.
Important: It is strongly recommended that you not use this setting for payroll elections sourced by Benefits. Benefits still calculates amounts based on the 27/53 divisor. However, if you configure an earning or deduction for benefits to exclude scheduled amounts and also configure the parameter for a payroll election sourced by Benefits, it may result in an incorrect YTD withholding.
If some of your organization's pay groups are affected, this option must be set by an authorized user to apply it to any future pay runs, and you (the payroll administrator) must also ensure that you recalc any open pay runs that you processed before you applied this option.
Exclude Scheduled Amount for 27/53 Pay Date
Before You Begin: This option only applies to automatically applied scheduled amounts. In an effort to allow adjustments or other corrective entries, this option won't exclude scheduled amounts on any manually applied pay run entries (for example, quick entries). You must take care when creating manual entries on final weekly or biweekly pay runs for a given year.
To set this option for both earnings and deductions:
- Go to Payroll Setup > Earnings and Deductions.
- Click the Earnings tab or the Deductions tab, depending on what you are setting.
- Select the earning or deduction to which you want to apply this exclusion.
- In the Options tab, select the Exclude scheduled amount for 27/53 pay date checkbox.
- Click Save and then click Refresh.
Important: When the Exclude scheduled amount for 27/53 pay date checkbox has been set, you must recalculate any affected, open pay runs for pay groups with weekly or biweekly pay dates. Future pay runs will have the exclusion automatically applied, but you must recalc any open pay runs that you processed prior to setting this option.