Maximum Arrears Payback Procedures

• The Maximum Arrears Payback is used to split an existing arrearage so that the collection is made over several pay periods. If the existing arrearage is to be collected in full, you do not need to complete a Maximum Arrears Payback; the SHARP system will take the full amount in the next paycheck.
• The SHARP system will deduct either the amount of the Maximum Arrears Payback or the total amount of the arrearage whichever is less.
• Once a Maximum Arrears Payback is set up for a specific code (ADJUST or ADVNCE) for a specific employee, that Maximum amount will remain in place until removed by the agency. Therefore, it becomes necessary for the agency to monitor the arrearage balance and delete the Maximum Arrears Payback after the full amount of the arrearage is collected.
• The DA-179, Maximum Arrears Payback, and the corresponding page in SHARP are not to be used to establish an arrearage. The arrearage should be set up using the off-cycle Adjustment Process for ADJUST or the on-cycle process for ADVNCE.
• Currently all arrearages are set up using the ADVNCE or ADJUST deduction codes. These are the only codes that should be used in SHARP and on the DA-179, Maximum Arrears Payback.
• An employee can have an arrearage balance under both the ADVNCE and the ADJUST arrearage codes. If a certain amount needs to be collected on each code, you will need to set up a Maximum Arrears Payback amount for each code. If a payback amount is set up for only one of the codes, the system will attempt to collect all of one arrearage balance and the maximum payback amount on the other.

Procedures for Maximum Arrears Payback

1. Agency determines an arrearage exists for an employee. The best source of information is the PAY007, Deductions in Arrears, which lists all employees with an arrearage balance for that agency. This report will also list the deduction code or codes under which the arrearage is set up. Agencies can also find arrearage balances on-line on the Payroll Homepage > Payroll Annual/Period Processes Tile > Balance Reviews > Arrears, which will show a balance for a particular employee only.
2. If the arrearage payback is to be made over several pay periods, determine the amount to be collected each pay period using one of the following methods.
   • Divide the arrearage amount by the number of pay periods over which the arrearage collection is to take place. You may then round up or down to whole dollars if desired.When the employee is down to the last one or two collections, you may want to review the amount and readjust to avoid any tiny amount left over to collect on the next paycheck.
   • Determine a flat dollar amount to be collected each pay period. This amount should be agreed upon by both the agency and the employee.
3. Go to Payroll Homepage > Employee Payroll/Benefits Data Tile > Employee Deductions/ER Contrib > Override General Deductions.
4. Enter the Employee ID number and click on Search.
5. Enter the Deduction code, either ADVNCE or ADJUST.
6. Click on the small box next to the words "Maximum Arrears Payback" on the right side of the page.
7. Enter the amount to be collected from each paycheck in the box next to the words "Maximum Payback Amount". If you do not want any money collected, leave the amount box blank.
8. DO NOT click off the boxes marked "First Pay Period", "Second Pay Period", and "Third Pay Period". These refer to the number of paychecks in any given month.
9. If another Maximum Arrears Payback amount is needed for the other arrearage code, either ADJUST or ADVNCE, click on the Add Row button (+) and repeat steps 5 through 8.
10. Save the page.

• The Maximum Arrears Payback can be entered any time up until Final Pay Calculation to affect a paycheck.
  • If the Maximum Arrears Paycheck is entered after the first payroll calculation, you must force the paycheck to recalculate in order to pick up the payback amount.Go to the Payroll Homepage > Payroll Processing Tile > Set Check to Recalculate. 
• You will need to check the next on-cycle PAY002, Paycheck Register Report, to verify that the deduction is being taken as entered in the Maximum Arrears Payback page.

Form Completion Instructions - For Agency Use Only

• Dept ID - Enter the 10-digit department ID where the employee works.
• Employee ID - Enter the employee's 11-character ID number.
• Emp Rcd # - Enter the employee's one digit record number.
• Employee Name - Enter the employee's name as it exists in SHARP.

GENERAL DEDUCTION OVERRIDE - Complete this section if the arrearage was created through an adjustment process or the advance earnings process.

• Deduction Code - Enter the deduction code of the arrearage, either "ADJUST" or "ADVNCE".
  • The correct code can be found either on the PAY007, Deductions in Arrears Report, or on-line on the Payroll Homepage > Payroll Annual/Period Process Tile > Balance Reviews > Arrears.
  • If a Maximum Arrears Payback is needed for both ADVNCE and ADJUST, complete two forms, one for each code.
• Maximum Arrears Payback - Check the small box
• Amount to be collected per pay period - enter the amount to be collected on each paycheck. The amount to enter is the collection amount and not the total arrearage amount. To determine the amount to enter, see step 2 above.
• Sign and date the form and file in the agency's payroll documentation file.