DetailsThe Guarantee (Net) Pay Detail is designed for employees who are guaranteed a minimum income by a Guaranteed Annual Wage Plan (GAW) agreement with the employer. A traditionalGAW plan is an agreement between the employer and employee, or the employee's representative, to guarantee that the employee receives a net pay amount even when no work is available.
Additionally, an employee Guarantee Pay Detail can be used to reserve a portion of net from a levy or garnishment; however, the payroll process doesn't discern between deduction codes when reserving this amount, which means voluntary deductions (health insurance, United Way, 401k) aren't withheld either. Use caution and look for pay periods where manual check adjustments are needed in the event that the employee doesn't earn enough to equal the total of the guaranteed wages, all taxes, and all deductions.
CAUTION! When an employee earns less than the total of his or her guaranteed wages and taxes if this processes without the use of a manual check to apply the appropriate adjustments, then no amount is reserved and all deductions process in deduction-sequence order based on the employee deduction details. This can result in a zero net pay for an employee and results that are out of compliance with the order for the garnishment or levy.
To avoid a zero net pay, use the pay entry "Manual Check" to force an adjustment to the deductions and reserve the available net pay.
The PAY00005 report lists employees who have guaranteed net pays.