Net Pay does not equal Gross minus Deductions

Owned by Knowledge Assistant
Apr 12, 2022
1 min read



Description of Issue

The Net pay is not calculating correctly. Gross Pay minus the deduction total does not equal the Net Pay amount.



Context

  • Munis

  • Payroll

  • Payroll Earnings and Deductions



Cause

System functioning as designed, Non-cash pay codes are not actually paid out to the employee.



Resolution

  1. Review each pay code in the payroll and check the Category Code for the pay codes

    1. If a pay code is a Category 5, it is a non-cash pay code and the amount of the pay code is added to the total gross

    2. The amount of the pay code is not paid to the employee so it is not part of the Net pay

  2. Determine the amount of all non-cash pay codes

    1. As an example, if the non-cash pay code is $100.00 and the Total Gross is $985.56, the gross for net pay calculation is $885.56

  3. Next, subtract the total Deduction value that is displayed from the net pay gross in step 2

    1. As an example, if the deduction value is $569.09, the calculation would be $885.56-$569.09 resulting in a net pay of $316.47



Additional Information

Another possibility is a deduction code that was not taken. It would show up in the Not Taken column of the Withholding tab