A tax rule must be entered in Earnings Code Maintenance for each earnings code.
The following table lists the tax rules that may meet your business needs for various earnings codes.
Note These tax rules are provided as examples. Sage cannot and does not guarantee the applicability of any tax rule to your circumstances. Before processing payroll for your employees, test all tax rules to make sure the calculation provides the expected result. For specific tax advice, see your professional tax service provider.
Earnings Description Sage Earnings Code Tax Rule Tax Rule Description Notes Regular Earnings 000001 -800039 Regular Wages Overtime Earnings -800033 Overtime Wages Overtime - Double Earnings -800015 Double Overtime Wages Holiday Earnings -800021 Holiday Wages Time Off - Sick Earnings -800023 Illness Leave Wages Time Off - Vacation -800067 Vacation Leave Wages Time Off - Personal -800037 Personal Leave Wages Bonus - Regular Taxes -800005 Bonus Wages Uses regular withholding calculation Bonus - Supplemental Flat Rate Taxes -800051 Supplemental Bonus Wages Uses supplemental tax rate Bonus - Puerto Rico Christmas -800103 Puerto Rico Christmas Bonus Commission - Regular Taxes -800011 Commission Wages Uses regular withholding calculation Commission - Supplemental Flat Rate Taxes -800053 Supplemental Commission Wages Uses supplemental tax rate Expenses -800017 Expense Reimbursement Not included in taxable wages or the gross wage amount Earnings Code with No Taxes 000000 No Taxes Not included in taxable wages, but is included in the gross wage amount Tips Reported 000005 -800041 Reported Tip Wages Tip Differential 000006 -800039 Regular Wages Tips Allocated TA -800001 Allocated Tip Wages Tips Earned TE -800041 Reported Tip Wages Fringes -800055 Taxable Fringe Benefit
