PERS Hour Cap Routine (PERS)
If the Special Routine ID is PERS Hour Cap Routine (PERS), then the deduction is calculated as per the PERS processing. If the deduction has an override amount, the deduction amount is set to the override amount and no further processing is needed. Otherwise, set up these fields on the Deduction Plan (DPLN) page as follows:
Amount/percent 1 defines the Hours Limit. This must be a valid whole number from 1 to 744. Enter the Hours Limit in the range of 1 - 744. If this value is not entered, the field defaults the value to 80.
Amount/Percent 2 defines the Minimum PERSable Earnings. This value is currently $185.
Amount/Percent 3 defines the Reduced Earnings Amount. This value is currently $61.
Amount/Percent 4 defines the numerator portion of the standard rate multiplier to be used when PERSable earnings are below the minimum. This value is currently 66.67.
Amount/Percent 5 defines the denominator portion of the standard rate multiplier to be used when PERSable earnings are below the minimum. This value is currently $100.
The system processes the pay details as follows to calculate the Subject Gross. Each event is put into a group that is defined by the User Defined Field on the Pay and Leave Events (EVNT) page. The SPAR entry PERS HOUR CAP USER FIELD identifies the User Defined Field that defines this group.
If the User Defined Field is blank, or has a value other than 1, 2, or 3, pay details are not included in the Subject Gross.
If the value in the User Defined Field is 1, the hours are accumulated into Group 1 Hours and dollars into Group 1 Dollars. All event types are added together to determine the Group 1 Hours and Dollars.
If the value in the User Defined Field is 2, the hours are accumulated into Group 2 Hours and the dollars into Group 2 Dollars by event type. Each event type has a separate total for Group 2 Hours and Dollars.
If the value in the User Defined Field is 3, all Contract Pay amounts are accumulated for all Group 3 Dollars.
When the total Group 1 hours are greater than the Hours Limit, pay rate is calculated for Group1 by dividing the Group 1 Dollars by the Group 1 Hours, and then the revised Group 1 Dollars is calculated by multiplying the calculated rate by Hours Limit.
For each event type in Group 2, when the total Group 2 hours are greater than the Hours Limit, pay rate is calculated for the Group 2 event by dividing the Group 2 event dollars by the Group 2 event hours. A revised Group 2 event dollars is calculated by multiplying the calculated rate by Hours Limit.
Subject Gross is then calculated as the sum of the Group 1, all Group 2 events, and Group 3 Dollars.
At this point, the special routine compares the Subject Gross to the Minimum PERSable Earnings (Amount/Percent 2) and performs the following:
If Subject Gross is greater than or equal to Amount/Percent 2 (Minimum PERSable Earnings), the value in Amount/Percent 3 is subtracted from the Subject Gross amount. The Deduction Amount is then calculated as the Deduction Percent multiplied by the reduced Subject Gross.
If Subject Gross is less than the value in Amount/Percent 2 (Minimum PERSable Earnings), Amount Percent 4 is divided by Amount/Percent 5 to get a multiplier (with 5 decimal places). The Subject Gross is multiplied by this calculated multiplier and rounded to the nearest penny. The Deduction Amount is then calculated as the Deduction Percent multiplied by the reduced Subject Gross.
