The first instruction line item created for the tax adjustment is rolled up into the payment instruction for the benefit. This means that the person in receipt of benefits will receive benefits less the amount of the tax adjustment. For example, a benefit with a payment amount of $50 might be adjusted by a 10% tax rate so that the payment instruction for the benefit would be for a total of $45.
The second line item for the tax adjustment is issued to the tax authority by calling the Issue Concern Payments batch process (note that tax authorities are registered as service supplier participants). The system searches for all unprocessed tax payment instruction line items and rolls them up into one payment instruction for the tax authority. This allows the organization to issue a single payment to a tax authority for deductions made from multiple cases over a period of time. For example, the organization may issue a tax authority a payment once per tax year.