Earnings Code
Enter the earnings code representing the earnings type you want to add or maintain, or click the Lookup button to list all earnings codes.
Note Code 000001 must be used for Regular Earnings, code 000005 must be used for Tips Reported, and code 000006 must be used for Tips Differential. Code TA is used for Tips Allocated, and code TE is used for Tips Earned. These codes
have a predefined type of earnings and a method of entry that cannot be changed. These codes are permanent an
d cannot be deleted.
Description
Enter the description for this earnings code (for example, sick pay).
Type of Earnings
Select the appropriate type of earnings for this earnings code.
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Select Xcluded from Tip Calc for earnings associated with tip reporting.
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Select Fringe to specify noncash fringe benefits. When an earnings code with a fringe earnings type is entered in Payroll Data Entry, an offsetting line with an FB deduction code is created automatically to deduct the line amount from the net check amount. The fringe benefit information displays in the box labeled "Benefits included in Box 1" of your W-2 Forms.
- Taxable Tips is reserved for earnings code 000005 (Tips Reported) and TE (Tips Earned) and cannot be entered for any other code. Allocated Tips is reserved for earnings code TA (Tips Allocated), and cannot be entered for any other code.
After earnings have been posted for an earnings code, this field cannot be changed until year-end processing has been completed.
Method of Entry
Select the method of entry.
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Select Standard if wages associated with this earnings code are calculated from hours or from a regular salary amount.
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Select Fixed Amount if the earnings are entered as a fixed dollar amount.
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Select Add Amount to Rate if the earnings are calculated using the employee's standard pay rate adjusted by a fixed amount (for example, night shift pay might use a pay rate based on a standard rate plus 50 cents per hour).
Employee Pay Rate
Select the employee pay rate.
This field is available only if you selected Standard or Add Amount to Rate in the Method of Entry field.
Benefit Types to Accrue
Select the All Benefit Types check box to accrue benefits for vacation, sick leave, and the user-defined benefit established in Payroll Options, or select any combination of these three benefits.
The description entered in the Accrual Benefit Description field in Payroll Options appears next to the third check box. If a third benefit type is not defined, this check box does not appear.
Fixed Amount
If you selected Fixed Amount in the Method of Entry field, enter the fixed dollar amount assigned automatically to this earnings code. When this earnings code is entered in Payroll Data Entry, this amount appears, and can be changed.
If you selected Add Amount to Rate in the Method of Entry field, enter the amount by which the employee's pay rate is to be adjusted.
Pay Rate Multiplier
Enter the number by which the pay rate is multiplied to arrive at the earnings amount. An entry of 1.000 has no effect on the pay rate (for example, regular earnings), and an entry of 2.000 doubles the pay rate (for example, double overtime pay).
Subject to Workers' Comp.
Select this check box if this earnings code is subject to workers' compensation. In Payroll Data Entry, the default workers' compensation code from the Employee master file will appear and can be changed. Clear this check box if you do not want the workers' compensation code from the Employee master file to be defaulted for the earnings code.
Post Exp. by Dept.
Select this check box if expense amounts for this earnings code are to be posted to General Ledger by department. The actual expense account used will be specified in Department Maintenance.
Clear this check box if you want all earnings amounts for this earnings code summarized to the General Ledger account specified in the Expense Account field.
Expense Account
Enter the general ledger earnings expense account for the earnings code entered. Click the Lookup button to list all general ledger accounts. This field is available only if the Post Exp. by Dept. check box is cleared.
If the account number is longer than the field, use the left and right arrow keys to view the entire account number.
Accounts can be created in this field if the appropriate settings are defined in the Auto Create when all Segments are Valid field in General Ledger Options.
Withholding
Select whether this earnings code is subject to withholding tax.
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Select Yes if this earnings code is subject to federal, state, or local withholding tax.
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Select No if it is exempt from withholding tax.
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Select Supplemental if this earnings code is subject to federal, state, or local withholding tax using the supplemental tax rate established in Tax Table Maintenance (for example, for bonus earnings).
Employee FICA
Select this check box if this earnings code is subject to employee FICA (Federal) tax. Clear this check box if the earnings code is exempt.
Employer FICA
Select this check box if this earnings code is subject to employer FICA tax. Clear this check box if it is exempt.
Employee Medicare
Select this check box if this earnings code is subject to employee Medicare tax. Clear this check box if it is exempt.
Employer Medicare
Select this check box if this earnings code is subject to employer Medicare tax. Clear this check box if it is exempt.
Unemployment Tax
Select this check box if this earnings code is subject to employer federal, state, or local tax jurisdictions. Clear this check box if it is exempt.
Employee SDI
Select this check box if this earnings code is subject to employee SDI (state) tax. Clear this check box if the earnings code is exempt.
Employee SUI
Select this check box if this earnings code is subject to employee SUI tax. Clear this check box if it is exempt.
Employee LDI
Select this check box if this earnings code is subject to employee LDI (local) tax. Clear this check box if the earnings code is exempt.
Other Local
Select this check box if this earnings code is subject to other local tax. Clear this check box if it is exempt.
Earnings Code Maintenance
