Problem processing a negative payroll deduction.

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Posted on by Community Member Microsoft Employee

We are trying to process a negative payroll deduction in GP10. This is something we have done numerous times to return premiums to employees if they have a change in their coverage. We have done several different scenarios to try to get this to process - such as trying a different code or a different employee or trying to take the deduction instead of returning it. We have not been able to successfully return the premium using a different code or a different employee. We are able to take the premium deduction for the code. This deduction is initiated in the HR module. We tried a miscellaneous deduction that does not start in the HR module and were successful in returning funds to an employee. We have applied the latest tax update. We have no errors on the build check report - the return of the deduction is listed. It does not show up on the calculate checks report. We have not processed further because we would like to fix this first.

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jenderr 5 on at

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RE: Problem processing a negative payroll deduction.

I've had this happen several times where the deduction was a pre-tax benefit. You have to process it through the payroll module for payroll taxes to be correct. You can fix this by entering a Maximum Yearly Amount, which is what the correct annual deduction should be. If the maximum amount is less than what has already been withheld, the difference will be shown on their check as a negative deduction and payroll taxes will correct themselves. For example if I had taken $300.00 out of someone's check for the year but it should be $200.00, then I would enter $200.00 as the Maximum Yearly amount and the next check built would automatically pay the employee the $100.00 back. Just make sure you inactivate the deduction after payroll is processed.
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Leah Crum 5 on at

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Re: Problem processing a negative payroll deduction.

Am trying one today. Try changing the deduction frequency to "annual" just for this pay period. Also, be sure that the sequencing is set up so that the refund goes AFTER other TSA deductions. I think my taxes are a bit low, and cannot reconcile them. On a $5K refund, they are off by about $20.00.
L Vail 65,271 on at

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Re: Problem processing a negative payroll deduction.

If you used a 'business expense' pay code instead of a negative deduction could you accomplish the same thing?