Once:
👉 Gross Pay
has been:
•calculated
•reviewed
•edited if necessary
the next payroll step is:
👉 deduction and withholding processing
This process calculates:
•federal withholding
•state withholding
•FICA
•Medicare
•unemployment contributions
•IRA deductions
•benefit deductions
•other payroll obligations
to arrive at the employee’s:
👉 Net Pay
(the actual paycheck amount).
Payroll Period Processing
When Gross Pay records are generated:
👉 MLS 2026 automatically assigns a payroll period number
to the payroll batch.
During deduction processing:
👉 the operator is prompted for this payroll period number.
Once entered:
•all payroll records for that payroll period are processed automatically.
Automatic Deduction Calculation
MLS 2026 calculates payroll deductions based on:
•employee setup
•withholding information
•tax tables
•payroll formulas
•deduction company records
•payroll periods
•supplemental withholding settings
The system automatically computes:
•payroll taxes
•payroll deductions
•retirement contributions
•employee obligations
for each employee included in the payroll batch.
Payroll Review Screen
After calculations are completed:
👉 the payroll records are displayed for review.
Management may:
•review withholding totals
•inspect deductions
•confirm net pay amounts
•verify payroll accuracy
•make corrections if necessary
before payroll checks are finalized.
Re-Opening Existing Payroll Records
If deductions were already calculated previously:
👉 the system allows access for review and editing
without recalculating the payroll automatically.
This is especially useful when:
•reviewing payroll prior to printing checks
•verifying accounting
•correcting setup issues
•adjusting payroll records
Types of Deductions Calculated
MLS 2026 automatically calculates:
•Federal withholding
•State withholding
•Local taxes (if applicable)
•FICA / Social Security
•Medicare
•FUTA / SUTA obligations
•IRA deductions
•Insurance deductions
•Garnishments
•Retirement contributions
•Employee benefit deductions
•Payroll advances
•Other custom deductions
based on the payroll setup information previously configured.
Why Setup Accuracy Is Critical
⚠️ Payroll deductions are only as accurate as the setup data.
Incorrect:
•tax tables
•formulas
•employee setup
•deduction settings
•withholding information
will produce:
👉 incorrect payroll calculations.
For this reason:
all payroll setup areas should be reviewed carefully before live payroll processing begins.
Important Payroll Warning
⚠️ If deduction errors are discovered:
do NOT simply override the numbers unless absolutely necessary.
Instead:
👉 locate and correct the actual source of the problem.
Common causes include:
•outdated tax tables
•incorrect employee withholding setup
•wrong payroll periods
•invalid deduction percentages
•incorrect state formulas
If the underlying problem is not corrected:
👉 the system will continue producing incorrect payroll calculations in future payroll cycles.
Why Root Cause Correction Matters
Manual correction of payroll numbers may temporarily fix:
•one paycheck
but it does NOT correct:
•future payroll processing
•year-end totals
•payroll reports
•tax filings
•accounting entries
Correcting the setup data ensures:
•future payroll accuracy
•reliable withholding
•balanced accounting
•accurate W-2 reporting
Net Pay
After all deductions are calculated:
👉 the remaining balance becomes:
•Net Pay
This is:
•the actual employee paycheck amount
•the amount printed on payroll checks
•the amount available for direct payment
Net Pay equals:
👉 Gross Pay
minus
👉 Taxes and Deductions
Recommended Payroll Review Procedure
Before approving payroll:
👉 carefully review:
•Gross Pay
•Federal withholding
•State withholding
•FICA and Medicare
•IRA deductions
•Benefit deductions
•Payroll advances
•Net Pay totals
Look carefully for:
•unusual deductions
•negative balances
•missing withholding
•excessive payroll variances
Recommended Best Practices
When processing payroll deductions:
•Verify payroll period numbers carefully
•Review withholding calculations
•Confirm tax tables are current
•Verify employee W-4 information
•Review deduction company setup
•Investigate unusual payroll changes
•Correct setup issues at the source
•Review payroll reports before printing checks
Recommended Companion Sections
This section works closely with:
•Gross Pay Processing and Review
•Payroll Tax Setup
•Employee Withholding and Deductions
•Other Payroll Deductions
•Payroll Reports
•Payroll Troubleshooting
Together, these sections provide a complete payroll withholding and paycheck calculation workflow within MLS 2026.