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Employee Net Pays

Details

One or more Net Pay Detail records define how an employee receives his/her net pay, either by regular check, ACH (direct deposit), or both.

An employee's Employee Net Pays Detail records determines if the employee normally is paid by check or direct deposit:

• If an employee is paid by a regular payroll check, a Net Pay Detail record for a check is needed to process the check. Typically, new hire processing adds the default paycheck record automatically.
• For a direct deposit, the net pay detail contains all of the employee's banking information needed for direct deposit, including the bank transit and bank account numbers. This screen determines any pre-notification process.

An employee may have more than one Net Pay Detail record. Per employee, the system allows an unlimited number of direct deposits where each net pay has a unique net pay code. Most often, employees have a two or three net pay records. To display more than seven net pay records for one employee, use custom payment forms and/or have employees use the self-service payment information views.

For Net Pays, the processing sequence determines the order that funds are subtracted from available wages. The final net pay should always be 100% and paycheck net pay should be defined and active, even when the employee only has one net pay record.

The Employee Net Pay detail reports the employee's net pay amounts by Current, Month, Quarter and Year-to-date net wages, per net pay code based on the most recently posted payroll that included this employee.

An Employee Net Pay detail cannot be deleted if year-to-date payment amounts exist.

Business Scenario

The employee's net pay is distributed among the different payment forms based on the percentage or dollar amount and the process sequence. The process sequence determines how the percentages or dollars process. Net pays can include checks as well as direct deposits, and amounts to be distributed can be entered in percentages or actual dollars.

To set up an employee's Net Pay for earnings that have a pre-defined goal or limit, such as Holiday Savings Plan, enter (1) the total Net Pay Limit Amount, and then (2) enter a Net Pay Amount. Alternatively, use the Net Pay Percentage field to pay only a defined portion of the employee’s total earnings with this net pay.

Changes to the setup of an employee's net pay records take effect based on the settings on the records and when the changes are entered. Net payments and net payment distributions are calculated as part of the Gross-to-Net process.

Employee Payment Scenario

The processing sequence works with the amounts or net pay percentages.

If an employee has $1,000 for net pay distribution and wants $500 to go to checking, and split the remainder into two different savings accounts, complete the following steps.

1. Create the initial net pay record with a sequence of 1 and amount of $500 or 50% to checking.
2. To direct the second net pay to savings for half of the remaining amount ($500) create the record with a sequence of 2, amount of $250 or 50% (50% of the remaining dollars), to the designated savings account.
3. To direct the remaining amount $250 to a third net pay record it would be sequence 3, amount $250 or 100% (100% of what remains - $250), and to the designated savings account.

For field-by-field information, refer to the details topic for Employee Net Pays, or for more information about pre-noting a direct deposit, refer to the Pre-Note topic.