Unable to finalise - Negative net pay was encountered
Article ID
11165
Article Name
Unable to finalise - Negative net pay was encountered
Created Date
20th November 2019
Product
IRIS PAYE-Master
Problem
When trying to finalise a pay period you get the error:
Unable to proceed with Finalise & Update.
Negative net pay was encountered during pay calculation.
Please correct then recalculate and reproduce report etc.
Resolution
Negative net pay is unacceptable in the system and needs to be corrected before you can proceed.
In order to correct we need to set up a “company loan” to pay the employee enough to bring the net pay back up to at least £0.00. If you wish to produce a payslip the net pay value needs to be greater than £0.00.
Go to “Company” > “Details” > “Additions/Deductions“
Scroll down the list to the first entry labelled as “unused” and rename to “Company Loan“, set the pay type to “Add” and untick the tax, NI and pen boxes. The multiple value should be 1.
“Save” and “close“.
Go back into the variations for the employee with the negative net, add in your new company loan pay code and type in the temp column the value required to bring the pay back up to at least zero.
Recalculate and reprint your reports. This has corrected your current pay period and you can now finalise.
In the following pay period(s) the value of this company loan needs to be deducted from the employees NET pay to repay the additional payment back to the company.
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