Zero and negative net pay: how OneHRIS protects employees

When it happens

A pay period can produce low gross pay because of:

• Several days of unpaid leave or AWOL
• An extended absence in the 2nd half of the month when statutory deductions are scheduled
• A mid-period hire or separation leaving only a few days of earnings
• Multiple loan amortizations scheduled in the same period

How OneHRIS handles it

When the total of all scheduled deductions would push net pay below zero:

1. Mandatory deductions are applied first in full: SSS, PhilHealth, Pag-IBIG, withholding tax.
2. Loan and benefit deductions are applied next, stopping when gross pay is exhausted.
3. Any deduction that cannot be taken is flagged on the pay register as Skipped — insufficient pay.
4. HR sees the flag during pay register review and decides the resolution before approving the run.

The employee's payslip shows the deductions that were taken and a note that the remaining deduction was not collected.

2nd half absence and statutory contributions

Statutory contributions are often scheduled entirely on the 2nd-half payroll (the month's full contribution amount deducted on the second payslip). If an employee takes unpaid leave for the full 2nd half of the month, their 2nd-half gross pay may not cover the statutory amount.

OneHRIS flags this situation. The contribution is still owed for the month — it was computed based on the full monthly basic salary — so HR typically carries the uncollected portion to the next pay period's deduction queue.

Carrying to the next period

HR can set a deduction to Carry Forward rather than skip. On the next pay period, the carried amount is added to the normal deduction schedule. To do this, open the flagged deduction on the pay register, select Carry to Next Period, and save before approving the run.

AWOL and final pay

An employee who goes AWOL may have zero or negative net pay across several periods and an outstanding cash advance. At separation, OneHRIS flags the record as collectible from the employee, generates zero net disbursement, and still issues an accurate year-end tax calculation for the income actually received. See how to compute an employee's final pay.