Negative pay occurs when an employees deductions exceed earnings. In this circumstance the employee actually owes the organization and the organization needs to recover the net amount from the employee.
Since this is generally not a practical option the system automatically advances an amount to the employee, a Negative Pay amount, to cover the deficit, leaving a NIL Net Pay Amount. The amount advanced is recovered automatically in subsequent period/s using a Negative Pay recovery code.
See this link for more information about negative pay and its recovery.
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