Pays that need to be included in an employee's gross pay but not included in the employee's net pay (for example a car allowance or a clothing allowance) are in/out pays. An in/out pay is entered as an earning for applicable employees but is subtracted as a deduction from the employee's net pay after taxes have been taken. In Payroll, In/Out pays are set up as Other pays using the Pay Setup window. 

In/Out pays are included in gross pay as well as taxable and subject-to wages, then taken out of the employees' net pay as a deduction.

Notes:

• If you mark a pay as exempt from one or more employee/employer taxes, the pay is not included in taxable or subject-to earnings when the tax is calculated.
• In/Out pays are an Other Pay Type and will send only the amount to Job Cost if distribute to JC is selected, units are not sent.

Setting up other pays

1. From the Setup menu, select Pays.
2. Enter a Pay ID and Description for this pay.
3. Select Other as the Pay type.
4. Mark In/Out check box.
5. Select the relevant applications Distribute to box to create entries for this pay.
6. Click Deduct to set up the deduction.
   1. Enter the deduction Description.
   2. Enter the Liability account.
   3. Click Ok.
7. When finished entering information for this pay, click Save, then Close.