Pre-Tax Limit (PTL)

The Pre-Tax Limit Routine provides an additional configuration option for Pre/After Tax Processing by using the Amount/Percent 1 field as a pre-tax limit amount. When processing pre-tax deductions, the routine  ensures that no more than the amount entered in Amount/Percent 1 can be processed for the pre-tax deduction. Any remaining amount is processed for the after-tax deduction entered in the Cafeteria After-Tax Deduction Type and Cafeteria After-Tax Deduction Plan fields if there are enough remaining non-taxable earnings. If there are not enough non-taxable earnings, both the pre-tax and after-tax deductions is reversed. When utilizing this special routine, Pre/After Tax Processing must be selected, and Cafeteria After-Tax Deduction Type and Cafeteria After-Tax Deduction Plan fields are required.

Note: This functionality is only available when utilizing the Next Generation Payroll service.