Gross-to-Net Errors

A gross-to-net error occurs when the gross wages minus the taxes and deductions that print on an employee's payment do not equal the net wages on the payroll register. The Payroll Register report (R073012) displays GTN or ERR next to each employee who has a gross-to-net error. You typically print the Payroll Register report during the pre-payroll processing step of the payroll cycle.

(Release 9.2 Update) When a gross-to-net error occurs during pre-payroll, the system updates the status code in the Pre-Payroll field on Work With Pay Cycle Workbench to X. When the payroll ID is set to X, the system does not allow you to continue further with the payroll cycle processing until you resolve the gross-to-net errors.

To ensure that the system creates the appropriate journal entries, you must correct gross-to-net errors. Depending on the way in which the company options are set up, you might be required to correct these errors before you can continue with payroll cycle processing.

Typically, gross-to-net errors occur because incomplete or incorrect tax area information has been entered into the system. For example, a gross-to-net error occurs if the system deducts a tax from the employee's gross wages, but the tax area information that is associated with that tax has not been set up in the system. This situation might occur if the organization has recently started doing business in another state, but tax area information for that state has not yet been entered into the system. To correct the gross-to-net error, you must set up the missing tax area information and reprocess pre-payroll.

Gross-to-net errors can also occur if the system deducts a tax from the employee's gross wages, but the tax area information that is associated with that tax is not set up to print on the employee payment. To correct the gross-to-net error, you must change the tax area information so that all taxes that are deducted from the employee's wages are printed on the payment. After you correct the tax area information, you must reprocess pre-payroll.