Using the Max Amount Feature in Payroll Items

If you wish to setup an Annuity or Regular Payroll Item that should have a Maximum Amount withheld for Employee, Employer or both you can do that!! Here is what you need to know...

In the Employee Deduct Max Type, choose when the Annuity or Regular Payroll Item should start. The Max Amount will start over based on the period selected. For the max amount field to be checked when the payroll is being processed, a Deduct Max Type must be set:

Annual (Processing from 1/1/YY to 12/31/XX)
Fiscal (Processing 7/1/XX to 6/30/XX)
Specific Date

If a Deduct Max Amount is desired then a Max Amount greater than 0.00 needs to be entered for proper withholding to occur.

When the Max Amount feature is used, the Payroll Item will be withheld until the maximum amount has been reached. Once the maximum amount has been reached the Payroll Item becomes dormant and will not be withheld until the Max Type option that was selected begins again.

*IMPORTANT*- If using Specific Date Deduct Max Type, there must be a Specific Date (Pay Date) entered in the Specific Date field. This will determine when the Max Amount starts being withheld.

NOTE-The same options are available for Employer Max Amount as well. The same rules apply as far as Max Deduct Type, Amount and Specific Date (if applicable)

Mass Load can be used to update Max field data. Here is a Sample CSV file with Max Deduct header information.

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