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 known as a "Tax Deduction" and is a debit against the benefit. The second, known as a "Tax Payment", 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.