Deductions allow the organization to allot part of a person's benefit payments to a specific purpose. This purpose is dependent on the category of deduction. There are three deduction categories within the application: applied deductions, un-applied deductions, and third party deductions.
For applied deductions, the amount is deducted from the benefit and applied toward any participant's outstanding liability. For example, $10 of a person's weekly benefits can be applied toward paying off an overpayment that was previously issued to him or her.
For un-applied deductions, the amount is also deducted from the benefit. It is then saved on the system as an unprocessed instruction line item payable to the organization. Un-applied deductions are used to recoup monies previously paid out by the organization. For example, if a person was previously issued money out of an emergency fund, deductions could be made from the person's benefit payments as a means of recouping the money for the organization.
Third party deductions allow a portion of a person's benefit to be directed toward bills, charges, or debts owed to a third party. Third party payments are made to any other participants registered on the system. For example, a person can use a portion of a benefit to pay his or her electricity bills. The electricity provider is a registered utility on the system.
Deduction are set up as part of case administration. A complete history of deductions, active and inactive, is maintained at the case level. For detailed information on setting up and maintaining deductions over time, see the Cúram Deductions Guide.