Error_Deductions_exceed_gross

Error: Deductions exceed gross

Issue

The employee's total deductions exceed the employee's gross pay. 

 

Explanation

When deductions exceed gross pay, there isn't enough gross pay to cover all the deductions. This situation is called a negative net pay or insufficient earnings. It may occur with 

  • High deductions. For example, large benefit contributions for eaht insurance, retirement, and so on; significant wage garnishments or child support orders; or advanced repayments or other deductions. 

  • Low gross pay. For example, reduced hours or unpaid time off; adjustments like docked pay or retroactive corrections; supplemental pay-only checks without regular earnings. 

 

The payroll system will not calculate a check for a negative amount. 

 

Solution

To fix this issue, 

  • review the employee's deductions. Including, federal, state, and local taxes; court-ordered garnishments (child support, tax liens, or creditor garnishments); and voluntary deductions (benefits, retirement contributions, and so on). 

  • based on your findings, the employee may need to adjust voluntary deductions to avoid negative pay. 

 

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