Issue/Symptom/Question

How does PENTA handle multiple entries in the Minimum Net Pay pop-up window for payroll deductions?

Applies To

• PENTA for Windows > Payroll > Setup > Deductions, Reimbursements and Other Compensation > Master Deductions
• PENTA for Windows > Payroll > Employees > Voluntary Deductions
• Limited to Master Deductions where the Calculation Base # is one of the following:
  •  4 - Percentage of Net Pay
  •  7 - Percentage of Disposable Net Pay
  • 13 - Amount Per Pay Period (After Tax)
  • 14 - Greater of Monthly Amount or % of Gross

Resolution/Fix/Answer

When there are multiple Minimum Net Pay rules defined for a deduction, PENTA uses the rule that provides the employee with the greatest amount of net pay.

Example: In this example there are two minimum net pay rules; Minimum Net Pay Amount and Minimum% of Disp Net

• Employee garnishment deduction with calculation base 7 (Percentage of Disposable Net Pay) set up as 65% of disposable net pay
• Employee's weekly Gross Pay = $700.00
• Employee's weekly statutory deductions (state and federal taxes) = $150.00 
• Disposable net pay = $700.00 - $150.00 = $550.00
• Garnishment deduction calculated at 65% of $550.00 = $357.50
• In this example the deduction is reduced from $357.50 to an amount of $275 
  • Minimum Net Pay Amount = $217.50
  • Minimum % of Disposable Net = $550.00 * .50 = $275.00
  • $275.00 > $217.50, therefore the net pay after taxes and the garnishment deduction can not be less than $275.00
    • Disposable net pay of $550.00 less the minimum net pay amount of $275.00 results in $275.00 for the garnishment deduction