Withholding Overview
Withholdings are specific amounts or percentages that can be held from disbursements that are subject to state and federal taxes. Withholding only applies to plans with taxable events, such as a Variable Annuity.
Withholding can be defined at four levels: plan level, policy level, activity level and client level. The WithholdingScreen business rules defines the fields that are used to capture withholding information. All levels of withholding reference this rule to determine the fields displayed to the OIPA user when withholding information is captured. The withholding information entered into those fields is saved in two withholding database tables. The AsWIthholding table holds the withholding record GUID and the level of withholding. The AsWIthholdingFields table holds all the actual withholding values.
Plan Level Withholding
Plan level withholding defaults are set when the plan data is configured in the Rules Palette. The Withholding tab of the Plan Data editor shows the fields configured in the WithholdingScreen business rule. Values entered into those fields are saved in the AsWithholdingField table. Plan level withholding is applied to policies and activities with the withholding configuration present in the transaction XML <Withholding>Yes</Withholding>.
Policy Level Withholding
Policy level withholding values are captured in OIPA. The WithholdingScreen business rule defines the fields that will appear to the user in OIPA. A Withholding link will appear in the Left Navigation Menu, if the Policy screen was configured to include the Withholding button and if proper security privileges belong to the user.
When an OIPA user selects the Withholding link at the policy level, the fields displayed are the fields configured in the WithholdingScreen business rule. The values entered are saved in the AsWithholdingField table, and the policy level designation is saved in AsWithholding. Policy level withholding takes precedence over plan level withholding and will apply to all activities with the withholding configuration present in the transaction XML <Withholding>Yes</Withholding>..
Policy level withholding can be locked down to prevent a user from entering withholding values when the policy is in a specified status. The optional <DisableWithholdingFields> element can be used in the WithholdingScreen configuration to accomplish this lock down of Policy level withholding.
Activity Level Withholding
Withholding can be defined at the activity level in configuration. This configuration makes a Withholding window available on the activity. An activity's withholding details can be set to process according to policy level withholding or activity level withholding. If activity level withholding is supported, then a Withholding link will appear in the Add Activity window when the activity is added.
Client Level Withholding
Client level withholding values are captured in OIPA. The WithholdingScreen business rule defines the fields that will appear to the user in OIPA. A Withholding link will appear in the Left Navigation Menu if the proper security privileges belong to the user.
Client level withholding is applicable when money is being disbursed at a client level via a client level activity. If client withholding has been established and activity withholding has been configured, the Withholding Type combo field on the activity withholding window would have client and activity values available. In this scenario, when activity is selected, the fields hold the client withholding values but are enabled and available for update.
CopyToWithholdingFields Business Rule
The CopyToWithholdingFields attached business rule can be configured and attached to a transaction. Then when the transaction is processed as an activity in OIPA, data can be passed from the activity to fields in AsWithholdingField.
The <Test> element within <Tests> can be used to set conditions for the update of the Withholding fields of a policy or client. When multiple test conditions are configured to determine if a pending activity or activities Withholding fields should be updated, all conditions must be met in order for the update to be made.
CopyToPendingActivityFields Business Rule
The CopyToPendingActivityFields business rule can be used to update withholding field values in policy activities that have not yet become active on the system and have not processed the transaction math, specifically, those activities in a Pending status.
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