Adjustments from a regular paid leave to a leave type that is not subject to PFML premiums will cause a reduction in liability of premiums. HRMS does not process negative Year-to-Date (YTD) earnings. If the reduction in PFML premiums exceeds the amount of premiums that have been collected within the calendar year, HRMS will redline during payroll processing. For example, if you attempt to process a retroactive Supplemental PFML and there are not enough YTD wages to cover the reduction, the redline will state “Negative YTD in TCRT Not Allowed”.
There are 2 common scenarios which may cause this redline crossing a calendar year or at the beginning of a new year:
Removing regular paid leave (subject to PFML calculations) and replacing it with a Supplemental PFML leave (not subject to PFML calculations), OR
Entering PFML Supplemental leave in retro.
Working Through this Redline
If you have an employee who falls in one of the two scenarios for retroactive PFML Supplemental Leave and you receive a redline, you must remove the PFML Supplemental leave for the period and replace it with a different type of regular paid leave. Once the employee has processed enough YTD PFML premiums to cover the negative adjustment, the correct supplemental leave type can be re-entered and processed. This will result in a reduction of the current period liability and premiums.
Identifying Refund Amounts
If you added PFML Supplemental Leave for an employee in HRMS and receive the above redline when running a Payroll Simulation:
Double click on the Results Table (RT):
Scroll down the Results Table to identify and make note of Wage Types /387 and /399:
Monitoring YTD Amounts
Once you have identified how much the reduction amount is, replace the PFML Supplemental leave with other paid leave to allow for processing. In subsequent payrolls, you can check the employee’s YTD premium amounts for wage types /387 and /399 by running the Wage Type Reporter until the employee has enough YTD premium balance to process the PFML Supplemental leave and subsequent reduction.
Run the Wage Type Reporter (PC00_M99_SWTR) with Wage Types Wage Types /387 and /399 for the currentyear for the employee. Once the amount reflected for the employee reaches the reduction amount identified previously, replace the regular paid leave with the PFML supplemental leave.