Earnings Code Maintenance

Earnings Code Maintenance - Fields

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 earnings type and a method of entry that cannot be changed. These codes are permanent and cannot be deleted.

Description

Enter the description for this earnings code (for example, sick pay).

Earnings Type

Select the appropriate earnings type for this earnings code.

Select Excluded from Tip Calc for earnings associated with tip reporting.

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.

The earnings type cannot be changed for any of the preexisting earnings codes or for any earnings code that has been used to process payroll if the associated history is still on file.

Method of Entry

Select the method of entry.

Select Standard if wages associated with this earnings code are calculated from hours or from a regular salary amount.

Select Fixed Amount if the earnings are entered as a fixed dollar amount.

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's pay rate to use for this earnings code.

This field is available only if you selected Standard or Add Amount to Rate in the Method of Entry field.

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.

Apply to Box 14 on W-2

Select this check box to include year-to-date earnings for this earnings code in box 14 on W-2 forms.

Exclude from ALE Report

Select this check box to exclude hours entered using this earnings code from the ACA Applicable Large Employer Report. Clear this check box to include the hours in the report.

Time Off Types to Accrue

Select the All Time Off Types check box to accrue time off for all of the time off types established in Payroll Options, or select any combination of these types.

The time off descriptions entered in Payroll Options appear next to the check boxes. If a description is not entered, the check box does not appear.

Tax Rule

Enter a tax rule to determine which taxes the selected earnings code is subject to. Click the Lookup button to view the list of tax rules, which are maintained in the tax calculation engine. For more information, see Tax Rules for Earnings Codes.

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.