Deductions_exceed_gross

Deductions exceed gross (Calculate Payroll Report)

Issue

I used the Calculate Payroll routine and the Calculate Payroll Report has a message that says, "Deductions exceed gross" for one employee. What does that mean and how do I fix it?

Calculate payroll report

Explanation

When an employee's deductions exceed their gross pay on a payroll check, it means that the total amount of deductions (such as taxes, benefits, retirement contributions, garnishments, and so on) is larger than the employee's earnings for that pay period. This situation can occur for a few reasons:

  • Wage garnishments. If the employee has a wage garnishment, such as for child support, student loans, or tax levies, it could be more than the gross pay, leaving the employee with no net pay (or a negative amount). 

  • Benefit deductions. For employees with substantial benefit premiums (health insurance, life insurance, retirement contributions), if these deductions are higher than the gross earnings, it could result in no net pay or a negative payroll check. 

  • Incorrect payroll setup or errors. This might happen due to payroll errors, such as incorrectly applied deductions or overestimated amounts. Sometimes, this can happen if there is a mistake in data entry or in incorrect deduction was applied. 

  • Loan repayment or other debts. If an employee has taken out a loan from the employer (for example, an advance) or if there are other repayment obligations, these deductions might exceed their earnings for a particular pay period. 

  • Negative net pay due to retroactive adjustments. In some cases, payroll adjustments (such as correcting past overpayments) can result in a situation where the deductions for the current period exceed the earnings. 


Solution

If deductions exceed gross pay, the payroll clerk should immediately investigate the cause and correct any errors. It might also result in the employee receiving no payroll check for that period, or in some cases, even being asked to pay the balance if the negative net pay is due to an error or advance repayment. 

202502, 2025Feb05, 92809

Copyright © 2026 Caselle, Incorporated. All rights reserved.

    • Related Articles

    • Deductions exceed gross

      Issue I used the Calculate Payroll routine and the Calculate Payroll Report has a message that says, "Deductions exceed gross" for one employee. What does that mean and how do I fix it? Calculate payroll report Explanation When an employee's ...

    • No gross amounts (Calculate Payroll Report)

      Issue I used the Calculate Payroll routine and the Calculate Payroll Report has a message that says, "No gross amounts" for one employee. What does that mean and how do I fix it? Calculate payroll report Explanation When an employee's payroll check ...

    • Deductions Exceed Gross

      Message: The net amount is invalid because the deduction amount exceeds the gross amount. Would you like to abort the check reference? Explanation: In single check entry mode, the net amount equals the gross amount minus deductions. To save the ...

    • How do I review the Calculate payroll report? (2025.02)

      When you run Calculate Payroll, a report prints. The report includes Payroll checks not calculated. Lists employees that were not calculated and the reason why the payroll check was not calculated. Hours totals. Total hours for regular pay type pay ...

    • Calculate Payroll - Payroll Checks

      Use the employee settings and the default settings in the payroll system to calculate a payroll check. A payroll check is calculated by determining an employee's gross pay, applying taxes and deductions, and arriving at the net pay (the amount the ...