Set up Earnings Codes: United States

You will use the PR Earnings Codes form to set up earnings codes, which identify and categorize types of earnings (e.g., hourly, salary, double time, etc.).

Note: You can also use this form to set up negative earnings codes for salary reductions (e.g., 401(k) and cafeteria plans). For more information, see Setting Up Negative Earnings: United States. The preferred way to set up salary reductions is to use pre-tax deductions; for more information on this method, see Setting Up Pre-Tax Deductions.

The following instructions detail how to set up earnings codes.

  1. 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 Earnings Code Sequences for more information.
  2. In the Description field, enter a description of the earnings code.
  3. In the Method field, select the method the system users to calculate earnings. See Determining Earnings Code Calculation Methods for more information.
    If you select L-Allowance, skip to the next several steps and resume with the instructions about the Earnings Type field.
  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, select the Subject to Auto Earnings check box. For example, salary, 401(k), and section 125 plans.
  6. If the system should include this earnings code in the basis amount for calculating craft and class add-on earnings, select the Subject to Craft/Class Add-ons check box. For example, vacation add-ons.
  7. If this earnings code is 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: For negative earnings codes (earnings reductions), leave this check box unselected. In this case, the earnings code displays as a deduction on the specified report. See Setting Up Negative Earnings: United States for more information.
  8. If you are tracking hours for the Affordable Care Act (ACA) on the PR ACA 1095 Employees and HR Look Back Analysis reports, select the Track Hours for ACA check box.
  9. If this earnings code should be used in the determining the basis for overtime calculations, select the Include in OT Calculations check box.
    Note: The system disables this check box for factors greater than 1.0.
  10. If you selected the A-Amount calculation method and you want this earnings code included in determining salaried earnings, select the Include in Salary Distribution Calculations check box.
    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 PR Salary Distribution.
  11. If you want foremen or employees to be able to use this earnings code when entering timesheets in PR My Timesheet, check the Include in Remote Timesheet Entry box. See Entering Timesheets for more information.
  12. In the Earnings Type field, enter the earnings type that determines the GL account that the system expenses when updating earnings to GL. Press F4for a list of available earnings types. See HQ Earn Types for more information.
  13. In the JC Cost Type field, enter the cost type the system uses for interfacing earnings to JC. Press F4 for a list of available cost types.
  14. In the Limit Period and the Limit Amount fields, enter values if they apply. Refer to field help for more information.
  15. If you want to include these earnings on their own detail line when you run the PR Certified Payroll Transcript or PR Certified Payroll Transcript With Class Info reports, select the Include Detail on Certified Reports check box.
    Note: If you do not select this check box, the system summarizes this earnings code under the “Other Taxable” or “Other Non-Taxable” fields on these reports.
  16. In the Fringe Benefit Type field, select the fringe benefit classification to use with the LCPtracker or eMars reports. Based on the type selected, the system places the appropriate rates/amounts in the corresponding report fields.
  17. On the Dedn / Liabs tab, associate deductions and liabilities with this earnings code. See Associating Deductions and Liabilities with Earnings Codes for more information.
  18. If you selected L-Allowance from the Method field, use the Subject Earnings tab to enter the earnings codes that are subject to this allowance.
  19. Save the record.