Use the PR Earnings Codes form to set up earnings codes, which identify and categorize types of earnings (for example, hourly, salary, double time, and so on).

1. In the PR Earnings Codes form, in the Earnings Code field, enter a number that uniquely identifies the earnings code.
   Note: The numbers you assign to earnings codes determine the sequence in which the system processes earnings. See Determining Earning Code Sequences for more information.
2. In the Description field, enter a description of the earnings code.
3. From the Method drop-down, select the method the system users to calculate earnings. See Determining Earnings Code Calculation Methods for more information.
   Note: If you select L-Allowance:

   • on the Subject Earnings tab, enter the earnings codes that are subject to this allowance
   • save the record
   • skip all remaining steps.
4. In the Factor field, enter the number that the system multiplies the rate by for calculating this earnings code.
   Note: When entering the factor, enter time in increments of 0.5. For example, use 0.5 for half time, 1.0 for regular time, 1.5 for time and a half, 2.0 for double time, and so on. Earnings codes with a factor greater than 1 are considered premium time on cost reports.
5. If this earnings code should be included in the basis amount for calculating automatic earnings (for example, salary or RRSP), select the Subject to Auto Earnings check box.
6. If this earnings code should be included in the basis amount for calculating craft and class add-on earnings (for example, vacation add-ons), select the Subject to Craft/Class Add-ons check box.
7. If you want this earnings code to be considered a true earnings on the PR Certified Payroll Transcript, PR Certified Payroll Transcript With Class Info, and JC Cost reports, select the True Earnings for Payroll Reports check box.
   The system disables the Include in Liability Distributions check box.
   Note: Do not select this check box for negative earnings codes (earnings reductions). In this case, the earnings code displays as a deduction on the specified report.
8. Select the Include in OT Calculations check box to include this earnings code in determining the basis for overtime calculations.
   Note: This check box is disabled for factors greater than 1.0.
9. If you selected A-Amount from the Method drop-down, select the Include in Salary Distribution Calculations check box to include this earnings code in determining salaried earnings.
   Note: If you select this check box and use this code to post hours by job, equipment, or account, the salaried employee’s pay rate and amount default to zero. When you process the PR Salary Distribution form, the system calculates the correct rate and amount. For more information, see About the PR Salary Distribution Form.
10. If you want foremen or employees to be able to use this earnings code when entering timesheets in the PR My Timesheet form, select the Include in Remote Timesheet Entry check box. See Entering Timesheets for more information.
11. In the Earnings Type field, enter the earnings type that determines the GL account that the system expenses when updating earnings to GL. Press F4 to select from a list of available earnings types. See About the HQ Earn Types Code Form for more information.
12. In the JC Cost Type field, enter the cost type the system uses for interfacing earnings to JC. Press F4 to select from a list of available cost types.
13. Set up automatic updates to Accounts Payable.
14. If this earnings code should be reported on the Record of Employment report, set up the appropriate separation payment or special payment information.
15. Associate deductions and liabilities with the earnings code.
16. Save the record.