FMLA Enhancement Processing

In compliance with the FMLA (Family and Medical Leave Act), the application allows your organization to adjust the contract limit, update benefits totals for employees, and create detailed distributions and fund accounting interface records for the health care benefits of employees whose gross pay is negative. The system will also adjust the contract limit with the full amount of docking when the amount to be docked is more than the employee is paid.

The primary option for this enhancement is the Adjust Negative Gross checkbox on the Human Resources Profile. If this checkbox is selected and the gross pay would otherwise be negative, the amount of docking will be changed to equal the paid amount. The total gross pay would then equal zero. For more details, refer to the Pay Run Calculation section below.

When the set up outlined in this section is completed, the Adjust Negative Gross checkbox on the Human Resources Profile is selected, and your organization performs pay run processes, the following will occur:

• Contract limit will be adjusted by the full value of the negative pay.

• Flat-amount deductions that are flagged to maintain arrears will have the arrears updated for the employees whose total gross pay is negative.

• Flat-amount benefits will be accumulated for employees whose total gross pay is negative.

• Pay checks with a gross pay of zero will be produced for these employees.

• Check history records will be created.

• Detailed distributions will be created for the benefit amount.

• Fund Accounting interface records will be created for the benefit amount.

• Manual or voided checks will be included if applicable.

For information and full procedures for the pay run processes, refer to Pay Run Processing.

Pay Run Calculation

The following is important when processing a payroll, manual check, or paycheck worksheet if the circumstances for negative pay are met and the Adjust Negative Gross checkbox is selected:

• In payroll pre-calculations, calculations, manual checks, and the paycheck worksheet, a message will display telling the user that the gross pay is negative and will be set to zero. The employee will then continue through the rest of the process and receive a zero-value check. The standard processing for employees with gross pay equal to zero will occur, including the accumulation of arrears for flat-amount deductions and the calculation of flat-amount benefits, including detailed distributions.

• If more than one docking record exists for the employee, the system will reduce each one by the same percentage.

• There may be circumstances that can lead to the amount that is reduced from docking to be a different value from the amount to be reduced from the contract limit for an employee. For example, if a manual docking amount was entered using a job class code that does not match the employee's pay rate. In this circumstance, the docking pay will be reduced, but there will be no corresponding change to the contract limit.

• If an employee has a pay rate that is included in the docking rate but is not a contracted position, the docking pay will be reduced but the contract limit will remain zero.

• If the employee has a pay rate with a contract limit that is less than the amount to be docked, the system will not reduce a contract limit below zero, and the amounts will be different.

Set Up the Human Resources Profile

1. From the System Administration menu, select Administration. From the Profiles menu, select Human Resources Profile.

2. Select the Payroll tab.

3. In the Pay Run Procession Options section, select the Adjust Negative Gross checkbox to enable the FMLA enhancement processing.

4. Click Accept to save the updated profile.

Review the Employee Setup

1. From the Human Resources menu, select Entry & Processing. From the Employee menu, select Employee Information.

2. In the Search Criteria section, enter criteria identifying the records to list, and then click Search. To run an advanced search, use the Advanced button.

3. In the List section, select the desired employee, click Payroll Information on the Action Bar, and then select Deductions.
   The employee record must have at least one deduction which is benefit method S or A, or flat-amount benefits. Only flat-amount benefits are processed for employees whose total gross pay is zero. The deduction arrears are only updated for flat-amount deductions. Therefore, after the total gross pay is changed from a negative amount to zero, only flat-amount benefits or deduction arrears will be processed.

4. If needed, click Add New to add a new deduction.

5. Complete the deduction information and then click Accept.

If an employee on FMLA leave has flat amount benefits that should not be accumulated, these deduction codes must be manually inactivated.

Set Up Pay Codes to Process FMLA

1. From the Human Resources menu, select Reference Tables. From the Payroll menu, select Pay Codes.

2. In the Search Criteria section, enter criteria identifying the records to list, and then click Search.
   The system will only reduce the contract limit for negative pay for pay codes starting with 09 (LWOP pay codes)

3. If your organization's existing pay codes cannot be used, you may have to add a new pay code. For more information on this process, refer to the Pay Code Table.