Payroll not adding benefits to Net Pay

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Posted on by Community Member

Hi,

We have pay code (salary), benefits and deductions setup. Benefits are not added in Net pay calculation. Even on Microsoft video demonstration I can see the benefits are not adding to net pay. I don't see any setup option which can enable that as well.

Below is example (assuming no tax):

Basic Pay = $1000

Benefit = $300

Deductions = $200

GP is calculating the Net Pay to be $1000-$200 = $800 and ignoring the benefits of $300.

Pay should be $1000+$300-$200= $1100

How can I make the benefits to be added to calculation.

We are using standard HR and Payroll (not advanced Payroll or extensions etc.)

Thanks in advance.

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Community Member on at

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RE: Payroll not adding benefits to Net Pay

Thanks Terry. Your video series on HR & Payroll are very helpful.
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Terry R Heley Microsoft Employee on at

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RE: Payroll not adding benefits to Net Pay

That would be correct, if it is "pay" they are receiving. Chris is correct in what he is stating. If you really are giving the employee some type of money in a form, then it should be a pay code and not a benefit. Benefits are not really money. Such as movie tickets, health insurance, could be stock that you want to tax them as a benefit, or a benefit for a stay fit gym. It is really not cash in their hands, but benefits to the employee. Hope this helps.

Thanks

Terry
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RE: Payroll not adding benefits to Net Pay

Thanks Chris for the response.

That would mean that we create pay codes for each benefit which needs to be added in the calculation.
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Chris.Hadden 726 on at

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RE: Payroll not adding benefits to Net Pay

Good morning,

When I think of net pay, I think of the dollar amount in which the employee will take home (gross-taxes and deductions). What you are describing sounds more like a total compensation statement, which shows what the employee 'earns' and what the employer is paying on their behalf (benefits).

I'm not sure if GP Payroll can create a total compensation statement for you out of the box or not, but the calculation you are describing above (Net= Gross-Deductions) is the correct/default GP logic, and I'm not sure if that could be changed without some type of customization.