Rick,
In my case, we are not dealing with Sec 125, but a simple bi-weekly, recurring Auto Allowance reimbursement that gets adjusted (reconciled) when EE's submit their expense/travel reports. If the PR module cannot perform this function out of the box, then I will have to develop custom db update triggers that adjust the deduction amounts when the calculations are performed.
Thanks for confirming what I am seeing in the base functionality.