Correcting excess deductions

An excess deduction is a code generated by the system to hold unassigned dollar values, positive or negative.

  • When the total deductions are greater than the earnings paid.
  • When the net pay exceeds the maximum allowable net pay amount, the remainder is an excess deduction.

    Note: If the Excess Deduction was created due to a net pay limit, it can be corrected by either issuing an in-house cheque or paying the missing net pay on a subsequent run in Powerpay.

  • Correct on the next pay run using the Deductions & Contributions page.Closed From the Payroll menu, select Regular Payment > Deductions & Contributions..

  • Enter the Excess Deduction as the opposite value (positive or negative).

Note: Excess deductions need to be corrected before running T4s or before an employee is terminated. If they are not corrected, they are ignored.

Tasks

To correct excess deduction for an employee:

  1. Check the excess deduction amount (XD) on the Payroll Report for the employee.
  2. Verify that the employee has enough earnings to cover the regular deductions plus the excess deductions you want to request.
  3. Select the employee from the Employee list.
  4. Go to the Deductions & Contributions page.Closed From the Payroll menu, select Regular Payment > Deductions & Contributions.

  5. If the Excess Deduction is negative, enter a POSITIVE value in the Excess Deduction field to deduct from the employee. If it is positive, enter a NEGATIVE value to pay it to the employee

    Powerpay REDUCEs or INCREASEs the Excess Deduction (XD) year to date by the amount you indicate. You do not need to collect or pay the entire amount of excess deductions on one pay.

  6. Click Save.
  7. When you preview your payroll, check the employee's deductions and net pay to verify that the excess deduction was correctly allocated and that a negative net pay was not generated.

Note: You can verify that the excess deduction has been corrected by looking at the employee's register in the next payroll package.