Recurring deductions

A recurring deduction is a pay record assigned to a resource that deducts pay from the resource’s settlement on a regular schedule, such as per pay. Before you can assign a recurring deduction to a resource, you must create the recurring deduction.

image1 See it in action

The recurring deduction setup defines how the system applies the deduction. It determines:

  • The pay type on which it is based

  • The deduction description that prints on a resource’s settlement sheet

  • The calculation method used for the deduction (whether it is a flat amount or a percentage of pay)

  • The frequency that it is processed, such as per pay

You set up a recurring deduction in the Deduction Maintenance window. To access the window, go to Tools > Setup > Recurring Adjustments > Deduction Maintenance.

In the Existing Deductions section at the top of the window, click Retrieve to view existing records.

You create new records in the Deduction Details section at the bottom of the window.

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  1. You must set up a pay type before you set up the recurring deduction record. For details, see Setting up a pay type for a recurring adjustment.

  2. After you set up a recurring deduction, you assign it to the appropriate resources. For details, see Assigning recurring adjustments to an individual resource or Assigning recurring adjustments to a group of resources.

Creating a recurring deduction

To create a deduction, follow these steps.

  1. Go to Tools > Setup > Recurring Adjustments > Deduction Maintenance.

  2. To view your existing deductions, click Retrieve.

  3. To create a deduction, click Add.
    A new row is added to the grid.

  4. On the Setup tab, enter the appropriate information in each field.

    Required field: *
    Read-only field: §

    Field Definition

    Detail section

    ID

    System-assigned numeric ID for the deduction record, created when you save the new record

    Description *

    Enter a description of the deduction.

    Type §

    Defaults to Deduction

    Pay Type

    Select a pay type.

    Note: The pay type must exist before you create the deduction record. For details, see Creating a pay type for a recurring adjustment.

    Recurring Adjustment Type section

    These fields let you determine how the system should calculate the deduction.

    Basis

    Select an option for calculating the deduction:

    • Flat rate
      Apply the same flat dollar amount each time the deduction is processed.

    • % Pay
      To calculate the amount, the system totals all taxable earnings for the settlement and multiplies that sum by the specified percentage.

    Default Rate

    Use this field to apply the same deduction or percentage each time the recurring pay is processed. This is useful when you want to use the same amount or percentage for all resources.

    Do one of the following:

    • If Basis is Flat Rate, enter a flat dollar amount.

    • If Basis is % Pay, enter the percentage as a decimal. For example, for 4%, enter 0.0400.

    • If the recurring pay record does not use a default rate, leave the default entry 0.0000.

    Terms section

    These fields let you determine the frequency of the deduction and conditions under which the deduction applies.

    Term

    Specify when the system should apply the deduction.

    • Per Pay
      Apply each time you prepare pay for a pay period.

    • Per Miles
      Apply to trips for which a resource received pay, based on the number of miles traveled.

      Selecting this option activates the Quantity, Left, and Mileage fields in the Criteria section.

    • Per Trips
      Apply for every trip segment (or for groups of trip segments) for which pay is being issued.

      Selecting this option activates the Quantity and Left fields in the Criteria section.

    • Per Linehaul Revenue
      Base the deduction amount on the combined line haul revenue generated by the resource for the pay period being settled.

      Selecting this option activates the Quantity and Left fields in the Criteria section. For more information, see Processing a line haul revenue deduction.

    • Schedule
      Apply based on a schedule that you define.

      To define the recurring deduction schedule, click Edit Schedule. For details, see Setting up a deduction schedule.

    Criteria section

    When you select Per Miles, Per Trips, or Per Linehaul Revenue in the Term field, the system activates all or some of these fields.

    Quantity

    The default is 1.00. This means that:

    • For Per Miles, the deduction is applied once for each mile on each trip for which pay is issued. The deduction rate is multiplied by the total number of miles.

    • For Per Trips, the deduction is applied for each trip segment (or groups of trip segments) for which pay is issued. The deduction rate is multiplied by the total number of trip segments.

    • For Per Linehaul Revenue, the deduction is applied for each line haul revenue dollar. The deduction rate is multiplied by the total number of line haul revenue dollars.

      Note: Line haul revenue dollars equal the sum of all billed or invoiced line haul revenue that is generated by the resource for a pay period. The system uses the line haul revenue as recorded on trip invoices to calculate the total line haul revenue.

    Enter a different quantity to apply the deduction based on a specific number of miles, trip segments, or line haul revenue. For example, for Per Miles, you would enter 100 to apply a recurring deduction for every 100 miles driven.

    Left *

    Applies rounding when Quantity is something other than 1.

    Select the rounding method used when the number of miles, trip segments, or line haul revenue dollars is not evenly divisible by the number entered in the Quantity number.

    • Round Near
      Round the number up or down to the nearest whole number.

    • Round Up
      Round the number up to the next whole number.

    • Round Down
      Round the number down to the preceding whole number.

    For example, if Quantity is 3 and the number of miles is 400, the result is 133.333.

    • If you select Round Near, the number rounds down to 133.

    • If you select Round Up, the number rounds up to 134.

    • If you select Round Down, the number rounds down to 133.

    Mileage *

    Identifies which type of miles is counted when a mileage-based recurring deduction is calculated. Options are:

    • Any
      Use both loaded and empty miles to calculate a recurring deduction.

      Note: This includes all miles driven, even if line haul pay for one or more trips is not based on miles.

    • Empty
      Use only empty miles. This includes all empty miles driven, even if line haul pay for one or more trips is not based on miles.

    • Loaded
      Use only loaded miles. This includes all loaded miles driven, even if line haul pay for one or more trips is not based on miles.

    • Hub
      Count hub miles. This includes all hub miles driven, even if line haul pay for one or more trips is not based on hub miles.

    • Paid
      Count only those miles for which mileage-based line haul pay was issued during the pay period.

      Note: The system totals all miles used to create mileage-based line haul pay, even if that number is different from the actual miles driven.

    Process Control section

    Set up sequential deductions here.

    Sequential

    Select the check box to set up the system to repay multiple recurring deductions sequentially (one after the other).

    The system completes the deduction having the earliest issue date before starting the next deduction.

    Sequential deductions require both of the following. The deductions must:

    • Be based on the same deduction type

    • Have a maximum amount recorded

      Note: You record a maximum amount when you assign the recurring adjustment to a resource.

  5. To save the recurring deduction record, click image5 Save.

After you set up a recurring deduction, you assign it to the appropriate resources. For details, see:

Setting up a deduction schedule

Selecting Schedule in the Term field activates the Edit Schedule button. When you click Edit Schedule, the Recurring Adjustment - Schedule window opens.

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Use the options in the Recurrence Pattern and Range of recurrence sections to set up a deduction schedule.

Field Definition

Recurrence Pattern

Indicate how often the recurring deduction will be processed. The fields on the right side of the section vary according to your selection.

Daily

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These options display on the right side of the window:

  • Every x day(s)
    Schedule the deduction regularly over a number of days. For example, enter 1 to process pay every day of the week, enter 7 to process pay once a week, and so on.

  • Every weekday
    Schedule the deduction for each weekday (Monday through Friday).

Weekly

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These options display on the right side of the window:

  • Use the Recur every # week(s) field to schedule the deduction on a weekly basis. For example, enter 1 to process the deduction each week, enter 2 to process the deduction every two weeks, and so on.

  • Use the check boxes to identify the day(s) of the week when the deduction will be processed. You must select at least one day.

Monthly

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These options display on the right side of the window:

  • Day # of every # month(s)
    Schedule the deduction on a specific day of the month.

    For example, to process the deduction on the first day of each month, select the radio button, enter 1 in the first field, and enter 1 in the second field.

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  • The # Day of every # month(s)
    Schedule the deduction on a specific day of the week on the scheduled months.

    For example, to schedule the deduction on the last Friday of each month, select the radio button, select Last in the first field, select Friday in the second field, and enter 1 in the third field.

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Range of recurrence

Start

Enter the date when the recurring deduction schedule goes into effect.

Note: Set the start date to the pay period before the first recurring deduction is to be processed.

End

Enter the ending date for the recurring deduction schedule.

Note: If the recurring deduction schedule should continue indefinitely, select the No End Date check box.

To save the schedule, click OK in the Recurring Adjustment - Schedule window.

Processing a line haul revenue deduction

The Per Line Haul Revenue option allows you to base deductions on the sum of the billed or invoiced line haul revenue generated by the resource in the pay period being settled. The system uses the line haul revenue as recorded on trip invoices to calculate the total line haul revenue.

This option is especially helpful for clients who want to deduct an expense automatically. An example of this is payments for auto liability insurance made by an owner-operator.

The following example shows how the system applies a deduction using the Per Line Haul Revenue option. This deduction was set up to deduct flat rate payments for auto liability insurance on a line haul revenue basis.

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In our example, tractor O/OP 400 has three trips (#880, #881, and #882) that are ready to settle for a specific pay period. The following illustrations show the billed revenue amounts for these trips.

The combined line haul revenue is $2,410.40 ($800 + $710.40 + $900.00.)

Order #880 - Revenue $800.00

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Order #881 - Revenue $710.40

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Order #882 -Revenue $900.00

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During the Collect process in the Final Settlements Folder, the system applied the Per Linehaul Revenue deduction. Notice that the system:

  • Applied an auto liability insurance standing deduction of $12.05.

  • Combined the line haul revenue for orders #880, #881, and #882 listed in the Collected Details Quantity field. The system:

    • Totaled the line haul revenue recorded on the invoice for each order

    • Rounded the total revenue amount of $2,410.40 up to $2,411.00, based on the Round Up value specified in the recurring deduction setup.

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Assigning a recurring deduction to a resource

When you assign a recurring deduction to a resource, the amount can vary for each type of deduction and for each resource.

While assigning a recurring deduction, you can record an initial deduction. The deduction adjustment must have a status of Initial. Once that status is Drawn, you can no longer make an initial deduction adjustment. For more information, see [RecordingInitialDeduction].

To assign a recurring deduction adjustment:

  1. Go to Tools > Setup > Recurring Adjustments > Recurring Adjustment Assign Asset.
    The Assign Assets window opens.

  2. Make entries in the Asset fields at the top of the window:

    1. In the first field, select the resource type.

    2. In the second field, enter the resource ID.

  3. Click Retrieve to view the currently assigned recurring adjustments.

  4. Click Add at the top of the window.
    The Assignment tab at the bottom of the window displays the resource type and resource ID you selected at the top of the window.

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  5. Complete the information in the following fields.

    Field Definition

    Recurring Adjustment

    Select the recurring deduction adjustment you want to add.

    Max Amount

    Enter the maximum amount allowed for the adjustment, if applicable.

    Remainder

    If you entered an amount in the Max Amount field, the outstanding dollar amount is shown here. The value is calculated as:

    maximum amount minus amount paid to date

    Adjustment Rate

    Enter the amount to be deducted per transaction.

    Paid to Date

    The total amount of the deduction paid to date.

    Acct Balance

    Not applicable for recurring deductions.

    Issued

    Defaults to the current date. If necessary, enter another issue date.

    Ref Type/Num

    If applicable, select a reference number type in the first field. In the second field, enter the corresponding reference number.

    Note: The fields in the Loan Details and Pay To Details sections are not used with recurring deduction adjustments.

  6. If applicable, make entries in the PayTo Details section.

    Assigning a deduction to a Pay To activates the Apply Per Resource and Apply to Inactive Resources check boxes in the Pay To Details section. You must select the Settle by PayTo check box on the PayTo’s profile to apply the recurring adjustment for these options. Make selections as needed.

    • Apply Per Resource
      Select the check box to apply the recurring adjustment to all resources showing trip pay on their Pay To’s settlement.

    • Apply to Inactive Resources
      Select the check box to apply the recurring adjustment to resources showing no trip pay on their Pay To’s settlement.

      For example, you could use this option to collect vehicle insurance on a per-pay basis even when the vehicle is not used to complete a trip for a specific pay period.

      Notes:

      1. The Apply to Inactive Resources check box applies only when you select the Apply Per Resource check box.

      2. Selecting both check boxes applies the recurring adjustment in the Pay To’s settlement for all resources associated to the Pay To.

      3. When the check boxes remain clear, the system applies the recurring adjustment to the Pay To.

  7. Depending on whether you want to record an initial deduction amount, do one of the following.

If you do not want to record an initial deduction amount

You can make initial deductions only when the deduction adjustment has a status of Initial. Once that status is Drawn, you can no longer make an initial deduction adjustment.

  1. Click image18 Save.

  2. Click image19 Close.

If you want to record an initial deduction amount

  1. Click Initialize Adjustment.
    The Initialize Deduction window opens.

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  2. Enter the amount of the initial deduction into the Paid to Date field.

    Note: If a maximum amount is set for the recurring adjustment, the amount you enter here must be less than the maximum amount.

  3. Click OK.

  4. Click image18 Save.

    Notice that the Status changes to Drawn and the Remainder and Paid to Date fields are adjusted by your initial deduction.

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  5. Click the Transaction tab to see transaction details.

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Deleting a recurring deduction

You can delete a deduction record within the Deduction Maintenance window, if it is not assigned to a resource.

To delete a recurring deduction record, follow these steps.

  1. Go to Tools > Setup > Recurring Adjustments > Deduction Maintenance.

  2. To display your existing recurring deduction records, click Retrieve.

  3. In the Existing Deductions grid, select the record you want to remove.

  4. Click Delete.
    The Recurring Adjustment Maintenance - Confirm Delete message appears:
    "Are you sure you want to delete the selected rows?"

  5. Click OK to delete the record.