When the Generate Instruction Line Items batch process is run, or when payments are generated online, the system determines whether or not taxes should be applied to the benefit. If taxes should be applied, the system creates two instruction line items. The first of these is a debit against the benefit. As described in the following section, the second is used to pay the tax authority.
The two instruction line items created for a tax adjustment are related to each other by a relationship record. This allows for traceability back to the case nominee from whose payment the tax adjustment was made. For example, when a bulk payment is issued to a tax authority (see below), each line item in that payment will be traceable back to a case nominee.