What is a Net Pay Adjustment?
When calculating salaries or pay items in Net, Buddy adds a Net Pay Adjustment as a new pay item. This is the amount generated by the reverse calculation to cover the deductions generated on the gross.
How to Set Salaries on Net Pay
Net Salary
In the Salary Details of the employee, you can change the Salary Type to Net.
This will default the full salary as net, and the net-to-gross calculation will apply to the full salary, including any pay items.
In such cases, the Net Pay Adjustment should be equal to the total amount of deductions, which would all be paid by the employer.
Net to Gross Items
Companies may also decide to apply the Net-to-Gross calculation only on specific items.
For these instances, when creating a custom pay item, when Choosing the Type for Pay Items, select Net to Gross.
When adding this item to a payslip, Buddy will first calculate the payslip without this item. Then, the pay item will be included, and any difference in deductions will be reverse-calculated and added as a Net Pay Adjustment.