Making positive adjustments and netting to zero

Note: For more information on deductions, see the Payroll User Guide.

Sometimes, when you create an adjustment where gross pay less other deductions leaves a positive balance, you must use a wash deduction to net an adjustment to zero. For example, when you record a payment to an employee by a third party. Since you do not make this payment to the employee, the wash deduction reduces the net to zero and takes the place of what normally would be the employee's net pay.

Making an adjustment and then netting it to zero records the taxable wages for the employee, but does not affect company balances.

Access Deduction (PR05.1).
Define a wash deduction.
Access Employee Deduction (PR14.1).
Assign the wash deduction to the employee.
Access Adjustment (PR82.1).
Specify the amount of the positive adjustment for the employee in the Amount field.
Specify the wash deduction.
Specify this information:

Deduction

Select the wash deduction.

Amount

Specify the wash deduction amount as the difference between the gross pay and the employee's deductions.

Note: When you specify a "wash" deduction, it enables the adjustment to net to zero, which satisfies the Adjustment (PR82.1) rule that the net result must be zero or negative.

Note: We recommend that you run Payroll Register (PR141) for an audit trail of the adjustments specified, immediately before running the Payroll Close (PR197).
Create an audit trail of the adjustment specified using Payroll Register (PR141).
Run Payroll Close (PR197) to update history.

If the adjustment needs to have an immediate effect on payroll history reports for year end processing, you can run Payroll Close (PR197) for a mini-cycle after you specify adjustments. If an adjustment does not need to be updated immediately, you can update it during the next normal payroll cycle when you run Payroll Close (PR197).