Two Tiered deductions

Paymate uses Payroll Categories to define Earnings, Benefits, Deductions, Payroll Tax, Accrual, and miscellaneous items. When you define a formula deduction or a formula benefit, you may specify it as Two Tiered.

When you click on Two Tiered Calculation you will see 4 more fields:

Example 1, if you specify:

• The formula as 100% of all Earnings
• The Annual Threshold as $40000.00
• The % for Lower Tier as 2%
• The Higher Tier as 4.8%
• Prorate Threshold is checked

Then the calculation on a single payroll would look like the following:

• Employee is paid Monthly
• Employee has $4000.00 paid on January timesheet
• Threshold on this timesheet would be $3333.33 (Annual Threshold / Employee Pay Frequency)
• 2% of $3333.33 is $66.67
• 4.8% of $666.67 is $32.00
• Result would be $98.67

Example 2, if you specify:

• The formula as 100% of all Earnings
• The Annual Threshold as $800.00
• The % for Lower Tier as 2%
• The Higher Tier as 4.8%
• Prorate threshold is unchecked

Then the calculation on a single payroll would look like this:

• Employee is paid Monthly
• Employee has $4000.00 paid on January timesheet
• 2% of $4000.00 is $80.00
• Result would be $80.00

Acclaim will use the lower tier percentage until the year-to-date of this category is reached to annual threshold ($800.00), then the program will use the higher tier percentage.