True/False: You can define the order in which to eliminate or reduce deductions if an employee's net pay is zero or drops below the minimum net amount for the run category?

• A. False
• B. True
• C. Not specified
• D. Cannot be reduced

Answer: (B)

When a pay run has a minimum net pay set and the calculated net would be zero or below, the payroll system can automatically adjust deductions by a defined order. You assign a priority to each deduction that can be reduced or eliminated, so the more flexible, voluntary deductions are targeted first, while essential withholdings stay intact. This ordering ensures the employee still receives at least the minimum net amount, aligning with both policy and compliance requirements. In practice, you configure the elimination or reduction sequence in the deduction or run category setup, and the system applies it in that defined order until net pay meets the minimum or there are no more eligible reductions.