NEGATIVE_ARREARS is an optional toggle field. This toggle is only ever 'ON' for one pay component - Advance Recovery. If this toggle is ON, the negative deduction is considered to be a recoverable advance, and an arrears transaction is generated for the purpose of recovering the advance on a subsequent pay. If the toggle is OFF, the negative deduction is treated as a refund or reimbursement to the employee, for which no recovery is required.
Negative deductions occur when we have to pay the employee back for taking too much money from their pay for whatever reason (e.g. they were listed as Family deduction and should only have been Single for some Benefit plan).
Collect Back toggle is only set ON for pay component usage of 5 - ‘Advance Recovered’. If Collect Back is set ON for deductions this will result in an incorrect calculation during the next pay as arrears will be generated and the gross amount reduced.
