Field Description - Rollover or Maximum Deduction Amount

The Rollover or Maximum Deduction Amount is processed as either a maximum dollar amount or revolving dollar amount according to the setting specified by the Rollover or Maximum Flag.  You can maintain the amount during Employee Master Maintenance in the Employee Master Scheduled Deductions Area.

• Year-to-date (YTD) dollar maximum:  If the flag specifies 1 - Maximum, then this amount determines the maximum amount deducted for the employee within the current year.
  
  Scenario:  If the employee has a 401K deduction of 1% with a maximum of $1500.00, the deductions automatically cease when the total reaches $1500.00.
   

• Revolving dollar amount:  If the flag specifies 2- Revolving Deduction, then this amount is used to determine payments to vendors.  The Revolving Deduction Report lists employees whose deductions have reached or exceeded the revolving amount.  The Revolving Deduction Rollover process resets the deduction balance as follows:

• If the deduction Rollover Balance exactly equals the revolving amount, then the rollover process resets the balance to zero.
  
  Scenario:  An employee contributes a Deduction Amount of $5.00 per pay period toward the purchase of U.S. Savings Bonds.  The system automatically updates the Rollover Balance with the total amount deducted so far in the current roll cycle.  When the Rollover Balance reaches the revolving amount ($35.00 in this case), the Revolving Deduction Rollover process automatically resets the Rollover Balance to zero and the Revolving Deduction Report triggers the employer to purchase a Savings Bond for the employee.  The employee continues to contribute $5.00 each pay period, and when the Rollover Balance again reaches $35.00, another Savings Bond is purchased.  This cycle repeats indefinitely.
   

• If the deduction Rollover Balance is greater than the revolving amount, then the rollover process resets the balance to the difference.
  Example:  If the deduction Rollover Balance is $35.00 and the revolving amount is $25.00, the rollover process resets the balance to $10.00.

Format:  7.2 numeric