Payroll benefits not included in Net Pay



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.

  • Hi KMDhariwal,

    Thanks for the clear explanation to your problem. I understand that you are expecting your net pay to reflect the adjust of deductions (-) and benefits (+). I don't believe this is a system issue, but instead more of an understanding over how GP is calculating net pay. Net pay is the amount an employee is expected to receive (take home) after deductions, taxes, etc. Benefits are also calculated as part of the payroll process but are not included in an employees take home pay (i.e. 401k retirement, long term disability, etc.). This is why you continue to see the net pay calculated as 800.00 in your example above.

    In the situation that the "Benefit" should truly be included in the employees net pay as a bonus or something similar, then I would set it up as a pay code and not a benefit code (with the appropriate tax configuration).