Stress Analysis Test and Weldments

I am working on a stress analysis test for a component, but I am running into an issue. This part I am working on includes sheet metal that is welded together on the sides. I applied the weld, but it does not show up in the simulation. Because of this, there is some pretty bad deformation/displacement. 

This is only one part file, so the weld includes the fusion of that part only. When doing this, there is a spot with a tiny bit of clearance between the two sheets of metal with a value of 0.001. There is no option to add tolerance to the weld itself, so I was thinking this could be the issue, but I am not 100% sure. 

I have included photos in this email to aid in what I am talking about. Please help!

Edu  SOLIDWORKS SIMULATION