Setting up a non-cash Pay Code in Pay Master

Owned by Knowledge Assistant
Oct 31, 2024
Description of Issue
  • Where can we add Category 5 non-cash value to a pay code? 
  • We have set up a non-cash pay code but it keeps adding the amount to the Employee Gross in Earnings and Deductions. 
Context
  • Pay Master 
  • Payroll Processing 
  • Earnings and Deductions 
Cause

In newer versions of the software there is no longer a Category 5 for Non Cash. Non-cash options have been moved to their own field on the Pay Master. 

In Earnings and Deductions, we expect to see the amount designated as non-cash to be part of the Employee Gross so it can be taxed. The net pay is less than the non-cash amount since it is not actually being paid out. 

Resolution

To verify what the non-cash setting for the pay code is:

  1. Go to Payroll > Payroll Setup > Pay Master
  2. Search for the pay code in question
  3. Look at the Non-Cash field, possible options include:
    1. N - PAID EARNINGS (NOT NON-CASH) 
    2. Y - NON-CASH INCLUDE IN GROSS
    3. D - NON-CASH EXCLUDE FROM GROSS (See additional information in the link below)

To confirm an employee is not being paid out the non-cash amount: 

  1. Navigate to Earnings and Deductions (Payroll > Payroll Processing > Payroll Start and Status > Earnings and Deductions)
  2. Look up the employee which has a non-cash pay code
  3. Take their Total Gross pay and subtract their Deductions to arrive at Net Pay 
  4. The amount calculated and the amount displayed for Net Pay does not equal. The net pay displayed is less than the non-cash amount since it is not actually being paid out.
Additional Information

Pay Codes Setup as Non-Cash Exclude From Gross and Payroll Processing