You will set this up on the User Defined Fields screen. At the AMS Payroll, select Payer>Payer Edit>User Defined Fields. Double-click on the first blank line. Enter a field name as you would like it to appear on the check entry screen. Under ‘Adjustments to Pay‘ pull the arrow down and select NetPay. Click OK until you are back at the Payroll Menu. You will now have a box on the check entry screen to enter this add to net.
What is a net pay addition?
Net pay additions are funds provided in addition to wages. This most often includes bonuses, but it can also refer to a variety of other payments. This includes:
- Severance
- Vacation
- Back pay
- Overtime
- Commission payments, depending on how a company handles commission
These additions are taxed and treated differently by the IRS because they are considered supplemental wages. If you award or supply your employee with any of the above payments, you will need to add it as an addition within the payroll software.