Calculating deductions and net pay

Use Earnings and Deductions Calculation (PR140) to calculate and report employee deductions, company deductions, and net pay for all employees with Current status time records. The Earnings and Deductions Calculation (PR140) creates up to five reports.

Earnings and Deductions Calculation (PR140) can be processed for an entire company, one process level, or multiple process levels making up a processing group.

For more information on Pay to Bill features on the Earnings and Deductions Calculation (PR140), see the Pay to Bill User Guide. Before calculating deductions and net pay, time records must be entered, and if required, forms such as FLSA Overtime Calculation (PR132) and Tip Calculation (TP135) must be run. Calculating FLSA overtime (U.S. and CA) Calculating tip credit records (U.S. and CA)

Calculate deductions and net pay

  1. Access Earnings and Deductions Calculation (PR140).
  2. Run the report for an entire company, one process level, or multiple process levels making up a processing group by choosing the parameters in the Company, Processing Group, or Process Level fields.

    To assist with balancing, it is recommended that you run Earnings and Deductions Calculation (PR140) and Payment Print (PR160) with the same parameters in the Company, Processing, and Group, and Process Level fields.

    Note: You can continue to process payroll without correcting employee error time records by bypassing employee errors. If you do not bypass employee errors, the time records in error must be corrected before you can continue to process payroll.
  3. Select the Selection tab to define the parameters for the earnings and deductions calculation. Specify this information:
    Payment Date

    Type the payment date. The payment date prints on payments when Payment Print (PR160) is run. This date determines what deductions and one-time deductions to process.

    Deduction Cycle

    Select a deduction cycle. The deduction cycle determines which deductions are taken for the payroll cycle.

    Error Time Records

    Select Yes to process only Error status time records.

    If you select No or leave the field blank, Payroll processes all time records and produces an edit report.

    Running for errors only reduces run time significantly.

    Print Error Records

    Select Yes to print only Error status time records on the edit report.

    If you select No or leave the field blank, Payroll produces a report of all employees with time records processed in the cycle.

    Rerun

    Select the value indicating if the report is a re-run. Payroll cycle: troubleshooting

    Report Only

    Select Yes to produce an edit report without creating actual payment records.

    If you select No, the report creates payment records in addition to the edit report. You must create payment records before you can run Payment Print (PR160).

    Bypass Employee Errors

    Select whether or not you want to bypass employee errors and continue with the payroll cycle.

    Delete Error Time Records

    Select whether or not to delete time records that are in error when you run Earnings and Deductions Calculation (PR140).

  4. Select Yes or No in the Bypass Employee Errors field to indicate if you want to bypass employee errors and continue with the payroll cycle.

    Select Yes or No in the Delete Error Time Records to indicate whether or not you want to delete time records that are in error when you run Earnings and Deduction Calculation (PR140).

    If Then
    You select Yes in the Bypass Employee Errors field and Yes in the Delete Error Time Records field

    the application bypasses employees with time record errors and marks Payroll Cycle Status (PR00.1) with an asterisk (*). The * means you can continue processing the payroll cycle.

    The application deletes the time records in error status and creates the Error Time Record Deleted report. The time records that were in error are no longer in the application. If you want to process time records that had an error status, you must enter the records again or create manual payments on Manual Check (PR80.1).

    Do not select Yes if you wish to immediately correct and process those time records that were in error.
    You select No in the Bypass Employee Errors field and No in the Delete Error Time Records field and there are employee time records in error

    the application marks PR00.1 with an E and you must correct the errors and re-run Earnings and Deduction Calculation (PR140) before continuing with the payroll cycle. If you choose to process errors, both the Bypass Employee Errors and Delete Error Time Records flags must be set to YES.

    When the fields are set to No, the application does not delete error time records and you can immediately correct the error time records and re-run PR140 before continuing with the payroll cycle.
    You select No in the Bypass Employee Errors field and Yes in the Delete Error Time Records field you receive an error message when you perform the Add form action.
    You select Yes in Bypass Employee Errors, and No in Delete Error Time Records

    the Time Record is changed to Error status, the Error Time Record shows on the Error report, PR140 continues processing,Payroll Cycle Status (PR00.1) shows an asterisk.
  5. Select the More tab to further define the parameters for the earnings and deduction calculation. Specify this information:
    Employee Sequence

    Select employee sequence to override the default print order defined for the company.

    Garnishment Report Sequence

    Select the value indicating the order to list garnishments.

    This report is used to verify the calculation of the garnishments processed in this payroll cycle.

    Override Bank Code

    If you select a bank code, your selection overrides the bank and cash accounts associated with the Employee's process level.

    To complete a bank code override, you must also select the override bank code in Payment Print (PR160).

    No Dir Dep, All System Payments

    If you select yes, the payroll produces only system checks for employees regardless of whether or not the employees are setup for direct deposit on the employee master.

    Tax Warning Messages

    Select whether to create a report of tax engine tax warning messages.

    Total Common Currencies, Countries

    Select whether or not you want to total all common work countries and common currencies.

    Funding Source Report

    Select the kind of report you want to create

    Include Retro Pension

    Select whether or not to include retroactive pension payments.

    Create CSV

    Select whether a CSV file is created from the data in the report. Select 1 to create a CSV file.

  6. Select the Add form action to add the job.
  7. Select the Submit form action to Submit the form.
    Note: You cannot run Earnings and Deductions Calculation (PR140) if you are prompted to first run Deduction and Garn Fee Update (PR115).
  8. If prompted to update employee deductions, run Deduction and Garn Fee Update (PR115). Updating deduction changes

    If prompted to set up federal garnishment for category G, run Load Req United States Federal Garnishment Rules (PR925) for your federal tax authority. Loading U.S. Federal garnishment rules

    Caution: 
    It is recommended that you verify the Earnings and Deductions report before proceeding with the payroll close.
  9. Access Payroll Cycle Status (PR00.1) .
  10. Verify the completion of the Earnings and Deduction Calculation.
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