Some government agencies require that the deduction amount be based on the number of hours worked. For this type of deduction, the rate given is applied on a per hour basis. For example, if a person works 35 hours and has an hourly deduction rate of $0.025 per hour, the deduction amount would be $0.88 (rounded). With this type of deduction, the Limit and Allowance fields are ignored. The entry in the flags field for this deduction type is h.
Some deductions are expressed solely as a time deduction. An example of this might be a donation to the United Way of one hour's pay each month. In this case, the system subtracts the number of hours specified at whatever the hourly rate is for the employee. In order for this to work properly, the Hourly Rate field must be filled in for the employee (even salaried employees). The Rate field specifies the number of hours to be deducted. Again, the Limit and Allowance fields are ignored. The entry in the flags field for this deduction type is ha.