When an employee's deductions exceed his/her pay, there are two options for handling the paycheck: either exclude/include the deductions based on priority or remove the employee from the register. This option is designated in Payroll Configuration.
When the first option is selected in Payroll Configuration, the Priority field determines if a deduction will be withheld from an employee’s salary when the employee does not have enough salary to cover all his/her deductions.
Deductions with a priority of 0 are required to be deducted from the employee's pay. So a priority of 0 will ensure that garnishment deductions are deducted in front of other voluntary deductions.
The default value is 1. Deduction priorities 1 and higher will be deducted from the employee’s salary as long as the employee has enough salary to cover the deduction.
The priority will be applied within the Deduct Order, so for example, the system will first apply deductions with the Tax order & priorities 0, 1, etc., then deductions with the Pre-Social Security order & priorities 0, 1, etc., and so on.
Return to Add a Deduction or Benefit
Return to Manage Deductions Overview