Net Pay Thresholds for the US

To avoid cutting low-value employee checks, you can set a threshold so that when the payroll process detects any amount below it, it automatically applies the value to an employee tax obligation in this order.

1. Federal income tax

2. Social Security

3. Medicare

Values above the threshold are paid to the employee normally. You set this threshold for your legislative data group (LDG), so it applies to all your organizations.

To enable this threshold:

1. From your home page, under Quick Actions, click Show More.

2. Under Payroll, click Calculation Value Definitions.

3. Select your US LDG.

4. Search for and select the Employee net pay threshold definition.

5. Enter an effective as-of date.

   If you don't, any changes you make are effective as of the current date.

6. In the Calculation Values table, click Add Row.

7. Enter from and to values of 0 and 999999999.

8. Select the Flat Amount calculation type override.

9. In Flat Amount, enter the amount of the threshold.

   For example, to set a threshold of $5, enter 5.