US Involuntary Deds White Paper

8/20/2019 US Involuntary Deds White Paper

1/37

An Oracle White Paper

March 2015

Oracle Fusion Human Capital Management forthe US: US Involuntary Deductions


2/37

Fusion: US Involuntary Deductions

Disclaimer

The following is intended to outline our general product direction. It is intended for information purposes

only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code,

or functionality, and should not be relied upon in making purchasing decisions. The development, release,

and timing of any features or functionality described for Oracle’s products remains at the sole discretion of

Oracle


3/37


Table of Contents

Table of Contents .................................................................................. 1

Introduction ........................................................................................... 1

Assumptions.......................................................................................... 2

Calculation Component ........................................................................ 3

Calculation Component Details ............................................................ 5

US Involuntary Deduction Data ........................................................ 5

Involuntary Deduction Child Data ..................................................... 7

Involuntary Deduction Payment Details ........................................... 8

Involuntary Deduction Rules ............................................................. 9

Calculation Values on Calculation Cards ........................................... 12

Shared Overrides ............................................................................ 12

Alimony ........................................................................................... 15

Bankruptcy ...................................................................................... 16

Child Support .................................................................................. 16

Creditor Debt ................................................................................... 18

DCIA ................................................................................................ 18

Educational Loan ............................................................................ 18

Employee Requested ..................................................................... 18

Garnishment ................................................................................... 19

Spousal Support ............................................................................. 19

Tax Levy .......................................................................................... 20

Calculation Value Definitions .............................................................. 21

Deduction ........................................................................................ 21

Exemption Rule ............................................................................... 21

Fees ................................................................................................ 22

Limit ................................................................................................. 22

Dependent Calculation Rule ........................................................... 22

Wage Basis Rules ............................................................................... 23

Actions for Calculation Components .................................................. 24

End Dating ...................................................................................... 24

Deleting ........................................................................................... 24

Deduction and Fee Processing .......................................................... 25

Refunding an Involuntary Deduction .................................................. 26

Refund the Employee ..................................................................... 26

Balance Adjustment ........................................................................ 26

Appendix A: Maximum Withholding Amount Examples .................... 28


4/37


Appendix B: Standard IWO Form ...................................................... 29


5/37


1

Introduction

Oracle Fusion Human Capital Management for the US provides a robust and flexible solution for

processing involuntary deductions. There are numerous fields available for data entry to support

processing of an involuntary deduction. This white paper documents the fields a user must complete for

involuntary deduction orders.

The following sections document each field in the deduction definition process, including preconfiguration

assumptions, the calculation component, and continuing through all the calculation component details.

The following subjects are explained:

Assumptions

Calculation component

Calculation component details

Calculation values on calculation card

Calculation value definitions

Wage basis rules

Actions for calculation components

Deduction and fee processing

Refunding an involuntary deduction

Standard income withholding order

Maximum withholding amount examples


6/37


2

Assumptions

The following assumptions have been made for this process, and their details are out-of-scope for this

document:

Third-party payments and payees have been defined.

Involuntary deduction elements have been defined, and element eligibility has been created.

Involuntary deduction card for the employee has been created.

No legislative rules require configuration, unless an override of a seeded value is needed. Legislative

rules are provided as part of the application seed data and are applied appropriately when the

involuntary deduction is processed.

Note: e-IWO calculation components are not covered in this document.


7/37


3

Calculation Component

Users must first use the Manage Calculation Cards task to update the employee’s involuntary deduction

card and add a new calculation component.

Note: Prior to Release 8, the calculation component was called the “deduction component”.

Calculation Component Fields

Field Required Description

Calculation

Component

Yes Name of the calculation component you are creating. This list is

based on the involuntary deduction elements that have been set up

previously.

Element Name N/A Reporting name of the element associated with this calculation

component.Read only.

Subprocessing

Order

No Processing order override for cases when multiple card

components have been defined. Any positive number can be used

for this value. The lower the number, the higher the priority. When

multiple card components exist, use the subprocessing order to

ensure correct processing.

Enter a large number for the first card component, such as 100, and

for subsequent card components, use a lower or higher number,

depending on whether you want it processed before or after the

existing card components.

Recommended

Subprocessing Order Range

Secondary Classifications

1 – 100 Alimony

Child Support

Spousal Support


8/37


4

101 – 200 Bankruptcy Order

201 – 300 Tax Levy, Federal

301 – 400 Tax Levy, State

401 - 500 Debt Collection Improvement

Act

501 - 600 Educational Loan

601 – 700 Garnishment

701 - 800 Creditor Debt

801 – 900 Employee Requested

For example: An employee has both a child support and a

garnishment order. Enter 10 for the child support component and

610 for the garnishment component. This ensures the child supportprocesses before the garnishment.

In the case of duplicate subprocessing orders, involuntary

deduction elements are processed in order by the element entry

date.

In the case of duplicate involuntary deduction elements, where the

same start date is used and no subprocessing order is specified,

the elements are processed in order by the lowest element entry ID

(the order in which the element entries were created).

State Varies State, district, or territory issuing the support or withholding order.

Required for state-issued orders, such as alimony. Not applicable

for federal orders, such as Bankruptcy.

If the employee’s work state is different from the issuing state on

the order, enter the employee’s work state in this field. This

ensures the payroll process applies the correct state legislative

rules.

Reference

Code

Yes Reference code as provided on the originating order.

This value is populated in payroll run results and is passed on the

electronic funds payment file in the Case Identifier field on the

addenda record. Note: For child support orders, this value appears on field 1h of the

IWO form.


9/37


5

Calculation Component Details

Each calculation component created must have its component details defined. The involuntary deduction

type determines which details are required.

The following calculation components provide fields required for involuntary deduction definition:

US Involuntary Deduction Data

US Involuntary Deduction Child Data

Involuntary Deduction Payment Details Involuntary Deduction Rules

Note: Prior to release 8, the calculation component details were called “deduction component details”.

US Involuntary Deduction Data

The fields in this section provide configuration details on the involuntary deduction.

Review the following table carefully. Not all fields are valid for all involuntary deduction types.

US Involuntary Deduction Data Fields

Field Valid For Deduction

Type

Description

CSE Agency

Case

Identifier

Child Support Support order case ID assigned by the issuing state or tribal

CSE (Child Support Enforcement) agency. In a State CSE

case, this is the identifier reported to the Federal Case

Registry (FCR).


10/37


6



Type

Description

Prior to Release 7, this field did not exist.

Note: This value appears on field 1l of the IWO form.

Employee

Work State

All except Bankruptcy,

DCIA, Educational

Loan, and Federal Tax

Levy

Employee work state in the case where it is different from the

issuing state. This field is for reference only.

Note:

In these cases, you must also use the State field on the

calculation component to specify the employee work state.

Prior to Release 7, this field was titled “Issuing State”.

FIPS Code Child Support FIPS (Federal Information Processing Standards) code as

provided on the originating order. Issued by the SDU (state

disbursement unit) receiving the payment. This field is

passed on the electronic funds payment file in the FIPS code

field on the addenda record.

Note: This value appears on field 22 of the IWO form.

Support Other

Family

Child Support Identifier for multiple family wage earners. Based on this

field’s selection, the system determines the proper CCPA

(Consumer Credit Protection Act) limit to use for disposable

income for the governing state.If the employee has multiple child support orders, and they

have different values set in this field, the system uses the

value that is most advantageous to the employee (Support

Other Family = Yes).

Eligible for

Medical

Support

Child Support Family medical insurance coverage availability through

employer. Does not specify if the employee currently

participates in such family medical coverage plan. This field

is passed on the electronic funds payment file in the Medical

Support indicator field on the addenda record.

Date in

Arrears

N/A This field is not used.

Payments in

Arrears

Child Support Support payments for the identified order are in arrears. This

field is used for states where the proration rule varies based

on arrearage such as Oregon.


11/37


7



Type

Description


Arrears

Overdue

More Than 12

Weeks

Child Support Identifier for employees with overdue arrears. Based on this

field’s selection, the system determines the proper CCPA

(Consumer Credit Protection Act) limit to use for disposable

income for the governing state.

Note: This value appears on field 6c of the IWO form.

Filing Status Creditor Debt,

Garnishment, Tax

Levy

For Creditor Debt and Garnishment deductions in Florida,

filing status for additional exemptions.

For Tax Levy deductions, used in conjunction with

allowances to determine the proper amount exempt from the

levy.

Statement of

Exemptions

Received

Date

Tax Levy Determines the proper year to retrieve Form 1494 data when

calculating exemption amounts for federal tax levies. If no

value is populated in this field, the start date year is used.

Third-Party

Involuntary

Deduction

Number

All Two-digit identifier passed on the Third-Party Involuntary

Payments Extract. The value must be unique for each

involuntary deduction the employee has.


Involuntary Deduction Child Data

The following fields apply to support order deductions only.


12/37


8

US Involuntary Deduction Child Data Fields


Type

Description

Name of Child Child Support Dependent child’s full name, including first, middle, and lastname.

Multiple children per order is not currently supported.

Note: This value appears on field 3d of the IWO form.

Date of Birth

of Child

Child Support Dependent child’s birth date.

Multiple children per order is not currently supported.

Note: This value appears on field 3e of the IWO form.

Involuntary Deduction Payment DetailsThe fields in this section provide details on how involuntary deductions and their fees are paid. The LOVs

for these fields are populated by persons and organizations defined through the Manage Third Parties

task.

If you want to use a third-party organization payee for the involuntary deduction payments (such as for

the order amount payee), then you must select “External Payee” in the Party Usage Code field on the

Manage Third-Party Payment Methods task. This makes the organization payment method available for

selection as a payee on the employee's deduction card.

See Oracle Applications help for further information on configuration of third-party payees for involuntary

deductions.


Involuntary Deduction Payment Details Fields


Type

Description

Order Amount

Payee

All Payee for the order. This list shows both third-party person

payees as well as third-party organizations.

Note: It is recommended that third-party payees for these


13/37


9

Involuntary Deduction Payment Details Fields


Type

Description

orders be set up prior to creating the card component.

Note: For child support orders, this value appears on field 23

of the IWO form.

Processing

Fee Payee

All Processing fees are paid to the employer.

Note:

In order for processing fees to appear on the employee’s

statement of earnings and payslip, you must create a payee

for the employer and then select it here.

External

Organization

Fee Payee

All except

Bankruptcy, DCIA,

Educational Loan,

and Tax Levy

If applicable, select the appropriate payee for the fee from the

list of values.

Normally reserved for child support orders but can be imposed

for any state-mandated involuntary deduction.

If no payee is specified, no organization fee is deducted.


of the IWO form.

Person Fee

Payee

Employee Requested Payee for the employee-requested deduction.

If no payee is specified, no person fee is deducted.

Involuntary Deduction Rules

The fields in this section define how Oracle Fusion processes the involuntary deduction.



14/37


10

Involuntary Deduction Rules Fields


Type

Description

Involuntary

Deduction

Number

All Order identifier designated by the sender.

Note: For child support orders, this value appears on field 1j

of the IWO form.

Received

Date

All Date the order was completed or signed. Used to specify

when the deduction begins in payroll if no start date is

specified.

Note: For child support orders, this value appears on field 1e

of the IWO form.

Start Date All When the deduction should begin deducting in payroll. No

proration occurs if the start date is in the middle of a pay

period. If not specified, Oracle Fusion Payroll uses the

received date.

Note: The element entry starts on the same date as the card

component effective date and not as of this start date. If

applicable, the maximum withholding duration days are

tracked from this date. The start date should be on or after

the card component date.

Prior to Release 7, this field was located in the US Involuntary

Deduction Data component detail.


of the IWO form.

Description All Free text field.

Prior to Release 8, this field was required.

Frequency All Frequency of the order amount as specified on the support

order.

Note: For child support orders, this value appears on fields

5b through 11b or 13a through 13d of the IWO form.

Number of

Dependents

Creditor Debt,

Garnishment

Number of dependents declared by employee. North Dakota,

South Dakota, and Tennessee grant additional exemptions

based on number of dependents.

Prior to Release 8, this field resided in the Involuntary

Deduction Rules calculation component detail. For Release 8


15/37


11

and beyond, it is available as an enterable calculation value.

Issuing

Authority

All Name of the jurisdiction issuing the order, such as the state,

district, or territory. This field’s LOV includes the third parties

that have been configured with an external usage code of

“Issuing Authority”.

Note: For child support orders, this value appears on fields

1g, 1i, and 1k of the IWO form.

Initial Fee

Taken

All Whether the initial fee has already been taken.



16/37


12

Calculation Values on Calculation Cards

Calculation values can be added to deduction components to serve as overrides for the deduction

amounts. Each deduction type has its own list of selectable values.

Note: Prior to Release 8, Enterable Calculation Values on Calculation Cards was named Overrides

Allowed on Deduction Cards.

Shared Overrides

The following overrides may apply to all involuntary deduction types.

Note: For these value names, represents the deduction type and, when appropriate, the state

name. For example: Texas Alimony Additional Order Amount.

Field Description

Additional Order Amount

Specific amount added to the deduction. For support orders, this is added tothe total withholding amount. For other involuntary deduction types, this is

added to the order amount. User must effective date this override for the

appropriate period(s). The appropriate legislative rules are followed when

applying this amount.

Exemption

Percentage

Exemption limit override.

For support orders, this percentage overrides the CCPA limit. This applies

to all conditions (arrearage and support other family). If left blank, the

standard CCPA limit for the governing state and conditions applies.

Entry in this field must be expressed as a percentage. 10% would be

entered as 10.

Federal Minimum

Wage Calculation Rule

Methodology used in the calculation of protected pay.

For example: Protected pay for Educational Loan deductions is calculated

as the greater of either 30 times the federal minimum wage or an exemption

of 85% of disposable income.

Applies only to Federal types of DCIA and Educational Loan deductions.

Federal Minimum

Wage Factor

Wage factor used in the calculation of protected pay.

For example: Setting this value to 30, the protected pay for Educational

Loan deductions would be calculated as the greater of either 30 times thefederal minimum wage or an exemption of 85% of disposable income.

Applies to all types except Alimony, Child Support, Spousal Support,

Bankruptcy, and Tax Levy.

Note: Individual states determine whether they use this value or the State

Minimum Wage Factor value.


17/37


13

Field Description

Federal Minimum Wage Federal minimum wage override. If left blank, the current federal minimum

wage is applied.

Initial Fee Amount Initial fee amount override. If left blank, the governing state’s initial fee is

applied.

Maximum

Organization Fee Per

Month Amount

Maximum monthly organization fee override. If left blank, the governing

state’s monthly maximum is applied.

Maximum

Organization Fee Per

Year Amount

Maximum yearly organization fee override. If left blank, the governing state’s

yearly maximum is applied.

Maximum

Processing Fee Per

Month Amount

Maximum monthly processing fee override. If left blank, the governing

state’s monthly maximum is applied.

Maximum

Processing Fee Per

Order Amount

Maximum per order processing fee override. If left blank, the governing

state’s per order maximum is applied.

Maximum

Withholding Amount

Maximum limit of the deduction amount for the processing period. See

Appendix A for examples.

Maximum

Withholding Duration

Days

Maximum number of days the amount is deducted before stopping. The

start date set by the calculation component Involuntary Deduction Rules is

used in the calculation.

Note: The amount is still deducted in the pay period the maximum duration

is reached.

Replacement

Order Amount

For support orders, this value replaces the total withholding amount. For

other involuntary deduction types, this value replaces the order amount. If

entered, legislative rules are ignored in the calculation. The user must

effective date this override for the appropriate period(s).

State Minimum

Wage

State minimum wage override. If left blank, the current state minimum wage

is applied.


18/37


14

Field Description

State Minimum

Wage Calculation Rule

Methodology used in the calculation of protected pay.

For example: Protected pay for Iowa Creditor Debt is calculated as the

greater of 40 times the federal minimum wage or an exemption of 75% ofdisposable income.

The greater of is the rule. It can also be lesser of.

Applies to all types except Alimony, Child Support, Spousal Support,

Bankruptcy Order, and Tax Levy.

State Minimum

Wage Factor

Wage factor used in the calculation of protected pay.

For example: Protected pay for Maine Creditor Debt is calculated as 40

times the federal min wage, 40 times the state minimum wage, or an

exemption of 75% of disposable income, whichever is greater.

Applies to all types except Alimony, Child Support, Spousal Support,Bankruptcy, and Tax Levy.

Note: Individual states determine whether they use this value or the Federal

Minimum Wage Factor value.

Minimum

Withholding Amount

Value is not used.

Order Amount Total amount to deduct for the order.

Applies to all types except Alimony, Child Support, and Spousal Support.

Order Rate Total percentage rate to deduct for the order.

Applies to Creditor Debt, Garnishment, and Employee Requested types only.

A deduction’s order amount can be entered as either a rate or an amount.

When expressed as a rate, 10% would be entered as .1.

Organization Fee

Amount

External organization fee amount override. If left blank, the governing body’s

external organization fee, if applicable, is applied.

Processing Fee

Per Pay Period Amount

Per pay period processing fee amount override. If left blank, the governing

body’s processing fee, if applicable, is applied.

Protected Pay

Amount

Amount to be excluded from disposable income calculations. If entered, no

legislative rules are applied in the calculation. This money may be used for

qualifying voluntary deductions, such as union dues or life insurance

payments.

If both an exemption percentage and protected pay amount are specified,

the protected pay amount takes precedence.


19/37


15

Field Description

Protected Pay

Rate

Rate to be excluded from disposable income calculations. If entered, no

legislative rules are applied in the calculation. This money may be used for

qualifying voluntary deductions, such as union dues or life insurancepayments.

If both an exemption percentage and protected pay rate are specified, the

protected pay rate takes precedence.

Total Owed

Amount

Total debt amount for the order.

Note:

When creating the involuntary deduction element, if the user selects Yes for

“Processing stop when the total is reached”, the application stops the

deduction once the total owed is reached. If the user selects No, the

deduction continues beyond the total owed. The total owed is informational

in these cases. When defining deductions of Tax Levy and Bankruptcy

types, always select No.

Total Withholding

Amount

Total amount to deduct for the order.

Applies to Alimony, Child Support, and Spousal Support types only.

Note: For child support orders, this value appears on field 12a of the IWO

form.

Total Withholding

Rate

Total percentage rate to deduct for the order.

Applies to Alimony, Child Support, and Spousal Support types only. Entry in

this field must be expressed as a rate. 10% would be entered as .1.

Note:

For child support orders, this value appears on field 12a of the IWO form.

Alimony

Field Description

Alimony

Exemption Percentagewhen Employee has

Dependents and

Payments In Arrears

Percentage of allowable disposable income that is exempt from deduction.

An entry in this field overrides the Federal CCPA limit.

Note: This value is not available as a calculation value on the calculation

card. It is available for override in Calculation Value Definitions.


20/37


16

Field Description

Alimony

Exemption Percentage

when Employee hasDependents and

Payments Not In Arrears



Note: This value is not available as a calculation value on the calculationcard. It is available for override in Calculation Value Definitions.

Alimony


when Payments In

Arrears





Alimony


when Payments Not In

Arrears





Bankruptcy

There are no overrides specific to Bankruptcy involuntary deductions. If the employee has a 401 (k) loan

amount with a bankruptcy, use the Protected Pay Amount override to enter the flat amount of the 401 (k)

loan. This reserves enough money to deduct the 401k loan in the payroll run.

Child Support

Field Description

Child Support

Amount

Child support amount due.

This value is no longer used for Release 7 and onwards. Prior to Release 7,

this amount should be included in the Total Withholding Amount.


form.

Child Support Arrears Balance Amount

Amount of child support currently in arrears.

This value is no longer used for Release 7 and onwards.


21/37


17

Field Description

Child Support

Arrears Deduction

Amount

Amount deducted for child support currently in arrears.


form.



Child Support


when Employee has

Dependents and

Payments In Arrears





Child Support


when Employee has

Dependents and






Child Support


when Payments In

Arrears





Child SupportExemption Percentage


Arrears

Percentage of allowable disposable income that is exempt from deduction. An entry in this field overrides the Federal CCPA limit.



Child Support

Medical Support Amount

Amount deducted for medical support.


form.



Child Support

Other Amount

Additional amounts paid per the support order.


form.




22/37


18

Field Description

Child Support

Past Due Medical

Support Amount

Medical payments past due.


form.



For information on how to configure the Wisconsin child support receipt and disbursement fee, see

knowledge article ID 1987772.1 on My Oracle Support.

Creditor Debt

DCIA

There are no overrides specific to Debt Collection Improvement Act involuntary deductions.

Educational Loan

There are no overrides specific to Educational Loan involuntary deductions.

Note:

State level education loans follow federal rules. Set these up using the Educational Loan secondary

classification.

Employee Requested

Field Description

Employee

Requested Person Fee

Amount

Fee amount payable to a person.

Field Description

Creditor Debt

Exemption Amount Per

Dependent

Additional exemption amount per dependent override. If left blank, the

governing state’s exemption amount for dependents is applied.

Currently used by North Dakota, South Dakota, Tennessee and Virginia.

Creditor Debt

Number of Dependents

Number of dependents claimed by the employee.


23/37


19

Garnishment

Field Description

Garnishment

Exemption Amount Per

Dependent

Additional exemption amount per dependent override. If left blank, the

governing state’s exemption amount for dependents is applied.

Currently used by North Dakota, South Dakota, Tennessee, and Virginia.

Garnishment

Number of Dependents

Number of dependents claimed by the employee.

Note:

For Alaska, to deduct a processing fee for a student loan garnishment, the user must enter the Alaska

Garnishment Processing Fee Per Pay Period of 5 USD.

Spousal Support

Field Description

Spousal Support


when Employee has

Dependents and

Payments In Arrears





Spousal Support


when Employee has

Dependents and






Spousal Support


when Payments In

Arrears





Spousal Support



Arrears






24/37


20

Tax Levy

Tax Levy does not require an Order Amount override. If an Order Amount override is entered, the

application uses this amount in the calculations.

Use the Tax Levy secondary classification for federal tax levies that require publication 1494 calculations.

If a payroll deduction agreement is received instead (Form 2159), create an involuntary deduction usingthe Employee Requested secondary classification. Do not use the Tax Levy secondary classification for

state tax levies. State tax levies are not currently supported. Use the Garnishment or Creditor Debt

secondary classifications instead, entering the proper overrides to accommodate the rules for the state.

Field Description

Tax Levy Additional

Allowances

Additional allowances claimed by the employee including if they are at least

65 years old and/or blind.

Tax Levy NontaxDeductions At Time of

Writ

Total dollar amount of employee's exempt deductions.

Tax Levy Total

Allowances

Number of exemptions claimed by the employee.


25/37


21

Calculation Value Definitions

Oracle Fusion HCM (US) provides the legislative rules by state for processing of involuntary deductions.

This data can be viewed using the Manage Calculation Value Definitions task. Prior to Release 8, this

task was named Manage Deduction Ranges.

The following range groups are available and contain the legislative seed data by state.

Deduction

Exemption Rule

Fees

Limit

Dependent Calculation Rule

All calculation value definitions are at the legislative data group level and apply to any employee in that

legislative data group. Descriptions of the fields are provided in the Enterable Calculation Values on

Calculation Card section of this document.

Deduction

Exemption Rule


26/37


27/37


23

Wage Basis Rules

Oracle Fusion HCM (US) provides the legislative rules by state for determining disposable income for

involuntary deductions.

To view this data:

1. Start the Manage Component Group Rules task.

2. Query for and select the Involuntary Deductions component group.

3. Expand the Involuntary Deductions | Wage Basis Rules tree nodes, and select State.

You may need to resize the Calculation Component Group Overview pane to view the tree.

Note: Prior to Release 8, this task was named Manage Deduction Group Rules.

For Supplemental Earnings primary classifications, a check mark indicates that earning contributes to the

disposable income for that deduction calculation. For example: In the image above, Alabama has an

element with a primary classification of Supplemental Earnings and a secondary classification of Bonus.

The check marks indicate this earning contributes to disposable income for Child Support, Garnishment,

and Alimony calculations.

For Pretax Deductions primary classifications, a check mark indicates that deduction is subject to

disposable income. It does not reduce the disposable income for calculations of the indicated involuntary

deductions. For example: In the image above, Alabama has an element with a primary classification of

Pretax Deductions and a secondary classification of Health Care 125. The check marks indicate this

element is subject to disposable income for Child Support, Garnishment, and Alimony calculations.


28/37


24

Actions for Calculation Components

To remove calculation components from your payroll environment, you must perform the following

operations.

End Dating

To end date a calculation component:

1. End date all overrides associated with the calculation component and save.

2. End date each calculation component detail and save.

3. End date the calculation component.

Once the calculation component is end dated, the element entry is also end dated and no longer

processes in payroll runs after that date.

Note:

For employee terminations, if you do not end date the person’s card component, the element entry

continues to process based on the element definition’s termination rule.

Deleting

Delete a calculation component only if it was improperly defined and unusable, such as if the wrong

deduction type was selected, the wrong state was chosen, it was assigned to the wrong employee, and

so on.

1. Delete all overrides associated with the calculation component and save.

2. End date each calculation component detail and save.

3. Delete the calculation component.

Once the calculation component is deleted, the element entry is deleted.


29/37


25

Deduction and Fee Processing

When creating earnings elements, the element template provides an option for specifying how to process

and pay the element.

This setting on the earnings element can affect how Oracle Fusion calculates involuntary deductions:

Earnings Setting Involuntary Deduction Calculation

Process and pay with other earnings Payroll run deducts the order amount and fees (if

applicable) from the regular process run.

Process separately, but pay with other earnings Payroll run deducts the order amount from the

regular process only. It is not deducted again fromthe process separate run unless the order amount

has not been fully satisfied in the regular run.

The exception to this is for order amount overrides

entered as a rate. For these cases, the amount is

deducted from both the regular and process

separate runs. The fees (if applicable) are

deducted from the regular process only.

Process separately and pay separately Not currently recommended for involuntary

deductions.


30/37


26

Refunding an Involuntary Deduction

To refund an involuntary deduction that has been processed in a payroll, you must perform the following

operations:

Refund the employee

Perform a balance adjustment

Refund the Employee

To refund the employee, perform the option most appropriate for your business:

Create a nonrecurring voluntary deduction, and enter the refund amount as a negative deduction.

This can be processed in a payroll run.

Create a manual check payment through Oracle Fusion Payables.

Create a nonpayroll payment element to be processed in a payroll run.

Balance AdjustmentIn addition to the refund to the employee, the balances for the involuntary deduction element must be

adjusted.

Note:

See the Oracle Fusion HCM (US): Balance Adjustments (Document ID 1600728.1) on My Oracle

Support for further details on Balance Adjustments.

To perform the balance adjustment:

1. For the involuntary deduction results element you need to adjust, verify that element eligibility has

been created.

2. View the employee’s statement of earnings. Under Other Deductions, locate the deduction you are

refunding and make note of its payee and order number. This information will be needed later in theprocess.

3. From the Payroll Calculation work area, start the Adjust Individual Balances task.

4. Search for and select the appropriate employee.

5. Enter the appropriate effective date.

6. Select the involuntary deduction results element you want to adjust.

7. Enter values for the following fields:

Field Description

Deductions

Calculated

Specify the refund amount as a negative value.

Order Number Enter the order number as it appeared in the employee’s statement of earnings.

Third Party

Payee

Enter the third-party payee as it appeared in the employee’s statement of earnings.


31/37


27

8. Update the costing details as appropriate. Because the employee refund has already been

performed, ensure Include in Payment Balance is set to “No”.

9. Submit the adjustment.

10. Repeat these steps for each fee that must be adjusted.

Note:

For processing fees, there is no Third Party Payee, but you must still provide the Order Number.


32/37


28

Appendix A: Maximum Withholding Amount Examples

The following examples illustrate how a maximum withholding amount is applied to a Bankruptcy Order

involuntary deduction.

Gross Wages $600

Protected Pay $0

Disposable Income $600

Maximum

Withholding Amount

$300

Bankruptcy Order

Total Withholding

Amount

$400

Bankruptcy Amount

Deducted

$300 Selects the lowest amount from the following: Disposable

Income, Maximum Withholding Amount, or Total

Withholding Amount

Not Taken $100


33/37


29

Appendix B: Standard IWO Form

Each field of the standard IWO (Income Withholding) form is designated by a unique identifier. This

identifier is referenced in the mapping of the involuntary deduction fields.

The Administration for Children and Families website provides this form and instructions on how to

populate it.


34/37


30


35/37


31


36/37


32


37/37


Oracle Fusion Human Capital Management for

the US: US Involuntary Deductions

March 2015

Author: Mary Nell Mclaurine

Contributing Authors: John Lawson

Oracle Corporation

World Headquarters

500 Oracle Parkway

Redwood Shores, CA 94065

U.S.A.

Worldwide Inquiries:

Phone: +1.650.506.7000

Fax: +1.650.506.7200

oracle.com

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

This document is provided for information purposes only, and the contents hereof are subject to change without notice. This

document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in

law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any

liability with respect to this document, and no contractual obligations are formed either directly or indirectly by this document. This

document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our

prior written permission.

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective

owners.

Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license

and are trademarks or registered trademarks of SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo

are trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of The Open Group. 0113

Documents

US Involuntary Deds White Paper