Salary Deferrals
The Sparkrock 365 salary deferral functionality provides the capability for you to withhold for each pay a specific amount of an employee pay check. The money that is withheld is paid back to the employee in even payments at a later time when the employee is not receiving their normal salary earnings.
This functionality is only offered for earnings that are associated with positions and assignments where the Pay Type is Salary and on non-excluded allowance records.
Prerequisites
To process salary deferrals in Sparkrock 365, some setup is required. For more information, see Set Up Salary Deferrals.
Salary deferral amount adjustments
Sparkrock 365 provides the capability to adjust posted salary deferral amounts so that compensation ledger entry errors can be corrected.
To adjust a salary deferral amount
On the Human Resources Manager role center, choose
, enter employees, and then choose the related link.The Employees page opens.
Select the employee for which you want to set up salary deferral amount adjustments, and then on the action bar, choose Related > Compensation / Payroll > Compensation Ledger.
The Compensation Ledger Entries page opens.
On the action bar, choose Actions > Reclass Deferred Amounts.
The Deferred Salary Reclass page opens.
On the Options FastTab, specify one of the following values for Reclass Type:
New Assignment: Moves the deferral amount to a new assignment, without modifying the deferral amount. This option is the default option.
Amount Adjustment: Refreshes the page and displays the New Deferred Amount. In New Deferred Amount, the new deferral amount for an existing compensation ledger entry can be specified.
For both Reclass Type options, the following results occur on the Compensation Ledger Entries page:
To indicate that the original line has been reclassed, Deferred Salary Reclassed for the original line is selected.
A line is created to offset the original entry.
A line is created for the adjusted entry.
The only amounts that are populated on the new lines are Earned Amount and Deferred Amount.
Compensation journal
Salary deferrals are processed in the compensation journal.
Deferral
If a pay cycle period is set to have a Deferral Action of Deferred, on the Compensation Journal page, Deferred Amount displays the calculated deferral amount for each line of eligible employee earnings.
Payout
If a pay cycle period is set to have a Deferral Action of Deferred, on the Compensation Journal page, Deferred Amount displays the calculated deferral amount for each line of eligible employee earnings,
Sparkrock 365 pays out the deferred salary at the HR position code level, not at the HR assignment entry number level. The deferral amount can only be paid back to the employee for a single HR position code in the same batch.
If circumstances require an employee to receive their salary deferral payout in a single pay period, on the Compensation Journal Load page, turn on Force Payout.
This action forces Sparkrock 365 to payout the entire deferral amount for the related HR Position Code.
Show deferral amounts on a pay stub
If an employee has a deferral, salary deferral amounts can be displayed on their pay stub.
To show deferral amounts on a pay stub
On the Human Resources Manager role center, choose
, enter primo payroll integration setup, and then choose the related link.The Primo Payroll Integration Setup page opens.
On the Payroll Processing FastTab, turn on Print Deferred Salary on Pay Check.
The payroll setup on the Check Setup FastTab must have Payroll Check Report set to Custom. This setup causes the Sparkrock 365 specific payroll check/stub to be used. The check is long stub/check format.
The salary deferral amounts are printed on the stub under the Net Pay line. If the employee has multiple assignments, with different HR position class codes, where those assignments have salary deferrals enabled, multiple lines are printed in the Deferred Salary section.
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