How to Manage Unpaid Insurance Premiums During LWOP

If an employee has low net pay (or no net pay), payroll may be notified that the employee has a Negative Check. A warning ("Net pay is NEGATIVE!") appears on the prelist (PYREEL) and also in the PROBLEM SUMMARY at the end of the prelist. This is a CRITICAL warning and must be resolved. Failure to fix the problem will result in the employee being skipped from the Distribute and Pay and/or the PY/GL posting job to fail. 

Offset the deduction to fix the negative check (HRPYPR, Miscellaneous tab):

• If the insurance premiums(s) are pretax, payroll will assign a deduction to offset the deduction (and the taxes).

• If the insurance premiums(s) are aftertax, payroll will assign a deduction to offset the deduction (only).

• Enter Begin/End dates that match the pay period dates.

• Run a prelist (PYREEL) to verify the offset amount was processed

• Payroll/Benefits will post any unpaid insurance premiums(s) into the arrears transaction tracking (PYUPAT) and use the arrears tracking screen to manage self payments and balances. Payroll/Benefits will post a transaction for any self-paid premiums(s) into the arrears transaction tracking. Note that after the offset amount is processed, the balance in PYUPAT is now $0.0.

• Payroll/Benefits will run and archive the Arrears Tracking Report (PYREFLAR) to keep a record of all employees with an insurance balance due unpaid insurance premiums.