Revised: 09/30/2013
Go to>>Maintain>>Earnings Master
Setup and maintain earnings codes in this view. Earnings codes are used in the Employee Master and Time Card Entry to enter and track earnings and entitlements.
For a new earnings code enter a unique 4 character alpha numeric code (do not make codes more than 4 characters long). Earning Codes are used to set up default earnings Information for an employee in the Employee Master and to enter earning and entitlement information in Time Card Entry.
For Example:
H = Hourly Pay
SAL = Salary Wage
S = Sick Pay
OT = Overtime
VAC = Vacation Pay
For an existing earnings code enter or select the code to view or edit the information. The code itself is a key value and may not be changed.
For a new earnings code, enter a description of up to 20 characters to describe the function of the code.
For an existing earnings code, the previously entered description will be shown. The description may be edited.
Place a checkmark in the box if the earnings code is taxable. Leave the field blank if it is not taxable.
Note: A nontaxable earning will not be included in taxable income, no FICA, federal, state or user defined deduction will be withheld from this earning. An example of a nontaxable earning could be a reimbursement for car allowances
Place a checkmark in the field if the earnings code is to have federal taxes withheld.
If there is no checkmark in the field, the earnings may be taxable for federal withholding, but you do not want the taxes withheld. You must also leave the Earnings Is Taxable field unchecked. No federal taxes would be withheld but the earnings would be included in the gross taxable wages for reporting purposes.
Place a checkmark in this field if the code is a salary code. If this field is unchecked it indicates that the code is an hourly code.
Salary codes do not use hours in the calculation of the gross amount. The system will track hours for a salaried employee if the "using Salary Hours" field is checked in Payrol Settings. Hours would be reduced for sick, vacation, holidays, etc. in Time Card Entry in the same manner as hourly hours.
For Example:
If a salary code is chosen and data is entered as a salary of 1000.00 for 80 hours. The gross pay would be 1000.00 as the 80 hours would be ignored.
Only check this for one hourly code. All other hourly codes should not have this field checked.
This field is not used to indicate if the code is an hourly type earning but is the master hourly code. This is used as the basis for automatically calculating the pay rate for other earning codes, such as overtime where you are calculating the overtime pay against the main hourly rate.
The hourly code that is checked as the Main Hourly Code should be the code used in the Employee Master's Default Earning Information area as the first line, even if the employee is a salary employee. This code's rate will be used to lower the salary amount when an absent earning code is used in Time Card Entry.
Place a checkmark in the field if the code can be categorized as an absence code. Absence codes could be: SICK, HOLIDAY, AND VACATION TIME among others.
This field is tied to the Absent Code field and should be check marked IF there is also a checkmark in Absent Code and the employee should receive pay when absent.
If the employee should not receive pay while they are absent leave the field blank.
Place a checkmark in the field if this code should reduce the number of regular hours during a pay period. Usually used with Absence Codes.
For Example:
If an employee had his regular number of hours worked for 80 hours per pay, and he took 8 hours as a vacation earning code (classified as an absent code; with pay; allowed to reduce master hours.) Then his 80 hours of regular pay would be reduced to 72. The 72 hours of regular pay plus the 8 hours of vacation pay would equal his 80 hours. If Allow Code to Reduce Master Hours was not checked then the employee would receive 88 hours of pay.
If this field is checked for the earning, then a special federal withholding percent should be entered in Settings>>Payroll Settings>>Main>>Spec Fed %>>Percent.
The federal withholding for earnings under this code would be calculated using the special percent.
If this box is checked, earnings entered for an employee using this code will not be used as part of the Benefit Expense distribution. This is not the dollar amount of the expense, but rather, where it is charged in the General Ledger.
For Example: An employee has earnings to general ledger Wage Account 4100 for $200.00, to 4200 for $200.00 and using a Non-Distributable Earning code to 4500 for $100.00 which totals to $500.00. A benefit based on dollars earned, such as Social Security @ 6.2%, will calculate the expense amount based on the total earned of $500.00 x 6.2% which equals $31.00 to be expensed. The normal benefit calculations would distribute Benefit Expenses to the general ledger based on the original Wage Accounts used as 40% ($200), 40% ($200) and 20% ($100). However, with the 4500 amount being Non-Distributable, the benefit percentages that will calculate are based on the $200.00 to account 4100 and $200.00 to account 4200 with a total calculated earning of $400.00. 50% of the $31.00 will be distributed to account 4100 and 50% to 4200 based on the $400 total that was distributable.
The Rate Factor is used to calculate the Rate for an Earning Code in Time Card Entry. If the Earning Code being entered in Time Card Entry is not one of the four Default Earnings setup in the Employee Master, the entry will calculate the Rate using the Rate entered on the first line of the employee's Default Earning Information times the Rate Factor entered for the Earning Code.
If this earning code is a "straight time" hourly code the rate factor is usually 1.
If the earning code is a salary code the rate factor is usually 0.00.
If the earning code is for overtime or will be a rate based on a factor of the normal rate, then enter the multiplication factor. For example: An overtime rate factor may be 1.50 or a holiday rate factor 2.00.
If the earning code is the same rate as the hourly rate, such as sick time, enter 1.
If the Code is marked as an Absent Code, then enter the Earning Code that is or will be tied to the Entitlement Master's Accumulation Code as the "Earning Code". This code may be the same code you are setting up.
When this "sick time" earning code is used in the payroll process, it will reduce the Entitlement Code setup in the Employee Master for that employee when setup properly.
For Example:
If you are creating an earning code of S for Sick Time Taken, which will be linked in the Entitlement Master as the Earning Code for one or more Accumulation Codes, it should be marked as an absent code with pay and the Absentee Earning Code should also be "S". If you want to setup a second sick time earning code of "SS" for Salaried Employee Sick, the absentee earning code field may also be filled in with "S" as long as the Entitlement Accumulation Code you want it to represent is also linked to "S" as the Earning Code or you could enter "SS" and link it to the Accumulation Code as the Earning Code.
When an employee takes a sick day, the "S" earning code is entered in Time Card Entry and the accumulation code for sick time, that has been linked to the "S" earning code and setup in their Employee Master file under Entitlements will be reduced by the amount of sick time taken.
Other Entitlement/Absence earning codes such as vacation or personal days should be setup in the same manner.
The Horizon Payroll System will create General Ledger transaction entries which can be interfaced to the Horizon Financial Series General Ledger. Each employee will have one entry for each general ledger account used for wage expenses. An employee could have multiple Earning Codes, but if they are all to the same general ledger account there will only be one general ledger entry. Using GL Compression Codes, the system can be set to separate entries for each Earning Code.
Entires to Earning Codes with matching GL Compression Codes will be combined based on the general ledger account.
Earning Codes that have a blank GL Compression Code will have one entry for each employee for each general ledger account used. The GL Memo field will list the employee's name.
|
Account |
Debit |
Date |
Source |
Memo |
|
4110 |
200.00 |
10/31/2013 |
PR |
Eppley, Mark |
|
4120 |
300.00 |
10/31/2013 |
PR |
Eppley, Mark |
If a GL Compression Code is entered for some or all Earning Codes
Earning Codes with no GL Compression Code will combine as above.
Earning Codes with matching GL Compression Codes will be combined. For example: Earning Codes with a GL Compression code of "SAL" will show as
|
Account |
Debit |
Date |
Source |
Memo |
|
4110 |
200.00 |
10/31/2013 |
PR |
Eppley, Mark (SAL) |
|
4120 |
300.00 |
10/31/2013 |
PR |
Eppley, Mark (SAL) |
If every Earning Codes has it own unique GL Compression Code, such as the OT Earning Code having a GL Compression Code of OT, then every Earning Code will list separately in the General Ledger.
This field should be left blank as it is no longer used.
The following "high" fields work to add alerts to the Time Card Register when filled in for hourly earning codes.
Enter a weekly hour alert amount. When the amount is reached for the earning code a warning will be shown on the Time Card Register if "Print High Individual Earnings Warnings" is checked when the report is run.
Enter a biweekly hour alert amount. When the amount is reached for the earning code a warning will be shown on the Time Card Register if "Print High Individual Earnings Warnings" is checked when the report if run.
Enter a semi-monthly hour alert amount. When the amount is reached for the earning code a warning will be shown on the Time Card Register if "Print High Individual Earnings Warnings" is checked when the report is run.
Enter a monthly hour alert amount. When the amount is reached for the earning code a warning will be shown on the Time Card Register if "Print High Individual Earnings Warnings" is checked when the report is run.
Select a Deduction/Benefit code when setting up a TIP earning code. Leave this field blank if this code is not a TIP earning code.
Enter a check mark in the box if the code is a TIP earning code that will be used to enter tip dollar amounts in Time Card Entry.
Enter a check mark in the box if the code will be used, by the program, to adjust an Employee's earnings up to minimum wage.