When could a member’s LES show a negative net pay, and how is it resolved?

• A. If deductions exceed earnings; verify all deductions, adjust entitlements, and correct any erroneous codes.
• B. If earnings exceed deductions; net pay would be negative.
• C. Negative net pay cannot occur.
• D. Only when there are tax issues.

Answer: (A)

Net pay on the LES is gross earnings minus total deductions. A negative net pay can appear when deductions exceed earnings in a given pay period. This often happens if a deduction is entered in error, multiple deductions apply that shouldn’t, or an entitlement is mis-coded, leading to higher deductions or lower reported earnings than warranted.

To fix it, verify every deduction and the entitlements applying to the member, correct any erroneous codes, and adjust the entitlements as needed. Once the corrections are made, the pay system will recalculate, and the next LES will show the correct net pay.