About the PR Earnings Codes Form

Use this form to set up and maintain earnings codes.

Earnings codes identify specific earnings, for example: regular hourly, overtime, hourly, salary, and vacation.

When setting up an earnings code on this form, you will use the Dedns/Liabs tab to determine if the code is subject to taxes, insurance, or other benefits (including union benefits). An earnings may be "subject only" to a state or federal tax which includes it in W-2 wages, but tax is not withheld. However, by setting up an earnings (and not including any deductions or liabilities on the Dedns/Liabs tab), you can pay the employee for reimbursed expenses while including the information on their pay stub and excluding it from all tax reporting.

Note: United States users: While you can set up salary reductions as negative earnings, it is recommended that you set up salary reductions as pre-tax deductions. For more information, see Setting Up Pre-Tax Deductions.
Note: You can also set up cafeteria plans, 401(k) plans, and all other salary reduction plans, as negative earnings codes rather than deductions, if you wish. However, because earnings are negative in this situation, they may appear opposite of what you might expect, so it is important to review your setup carefully. For a more detailed explanation of negative earnings, see Setting Up Negative Earnings: United States for more information.

You can also process car allowances as earnings. See Setting Up Car/Auto Allowances for more information.

The way that you set up an earnings code depends on the country in which you are working. For more information, click on the appropriate link below.

Setting Up Earnings Codes: United States

Setting Up Automatic AP Updates: United States

Setting Up Negative Earnings: United States

Setting Up Earnings Codes: Australia

Setting Up Earnings Codes: Canada

Setting Up Automatic AP Updates: Canada

Setting Up Negative Earnings: Canada

Setting up Separation Payments: Canada

Setting up Special Payments: Canada

Associating Deductions and Liabilities with Earnings Codes