About Minimum Net Pay

The Minimum Net Pay area of PR Employee Dedns/Liabs is used when the amount of a deduction may be limited to allow the net check to be equal to or greater than a designated amount or percentage of disposable earnings.

The typical use of this is for garnishments.

These fields are enabled only if the deduction/liability code is a deduction type and has a method of N (Rate of Net). The minimum net pay may be set up here for the employee as either an amount or a percent of net pay. If a percent of net pay is used, the earnings and deductions that make up that net pay (disposable earnings) are determined by the garnishment group that is assigned to the deduction/liability code.

Note: A garnishment deduction should be set up with a method of N (Rate of Net) to be able to access the Minimum Net Pay fields. However, the calculation method may be overridden for an employee to be a Rate of Gross or a flat amount. Therefore, a garnishment may be set up with many possible combinations for calculation of the deduction and/or minimum net pay.