Deduction priorities and arrears processing

Description

The payroll automatically processes arrears. The normal procedure is that when a limit is reached on a deduction before the complete amount could be deducted, the leftover amount will be processed in the following payroll period, and so on.

Each Wage type class, or individual wage type within a class may be assigned a priority. This means that for employees who do not receive enough pay to meet all their deductions before a limit is reached, those with highest priority will be deducted and processed first in arrears.

Change system parameters in customizing

For more detailed information, please refer to section Priorities and arrears in chapter Deductions in the Implementation Guide Payroll Singapore.