Direct Deposit Deduction not included in Net Pay



Description of Issue

Added a new direct deposit deduction, but it is not being considered as part of the net pay and it should be.

The YTD Net Pay on advices is showing the incorrect amount, it should be much higher. 

Context
  • Payroll
  • Payroll Start and Status
  • Advice Register and Export
  • Direct Deposit File
  • Payroll Control Settings
Resolution
  1. Go to Payroll Control Settings. (Payroll > Payroll Setup > Payroll Control Settings)
  2. Click on the line for Check - Include all category 7 direct deposits in net and click Accept.
  3. Click Update. Change the Value field to Y. Click Accept. 

Note - Once the control setting is set to Y, this will only impact payrolls going forward and will not update past payrolls.

Cause
  • Payroll Control Setting for, Check - Include all category 7 direct deposits in Net, was set to N.
  • Additional direct deposit deduction code was set up as Calc Code 02-Amt from Employee Deduction.
Additional Information

When the Control Setting for Include all Category 7 Direct Deposits in Net is set to Y, it will adjust the Net Pay and YTD Net Pay on the Advices and Advice Register. 

The YTD Net Pay is calculated by looking to the Yearly Accumulators and summing all the gross amounts then subtracting employee deduction amounts. If the Control Setting is set to N it will subtract the additional direct deposit amounts. If the setting is set to Y, it will instead include those as part of the YTD Net Pay. 

Example:

An employee's total Yearly Accumulator Gross amount is $90,000.00

Their Total Deductions equal $35,900.00. They have three Direct Deposits. The primary is deduction 9999 for $10,600.00 and there are two additional flat amount direct deposits for $25,000.00 and $5,000.00. 

If the control setting is set to N, their YTD Net Pay will show $24,100.00

If the control setting is set to Y, their YTD Net Pay will show $54,100.00