Rate Periodization Formula Behavior for Missed Payroll Deductions During Leave Periods

Hello Team,

We have a requirement to stop payroll deductions when an employee goes on certain types of leave. Specifically, HSA/FSA deductions should stop during the leave period, and any missed deductions should be recovered after the employee returns from leave.

For example:

• Annual HSA/FSA contribution amount: $2,600
• Per pay period deduction: $100
• Payroll has been processed for 4 periods, so the YTD deduction balance is $400
• Remaining amount to be deducted: $2,200
• The employee goes on leave for 2 pay periods and returns in the 7th pay period
• Remaining pay periods after return: 20

In this scenario, when the employee returns from leave, the expected deduction amount should be recalculated as: