The Deduction/Earning Code
File maintains the file, which contains the deduction, and earnings codes
you wish to use.
This file should contain all
possible employee pay deductions and earnings other than wages, savings bond
deductions, loan repayments, garnish payments, union payments, and withholding
taxes. Each deduction or earning must be assigned a unique two‑character
code and a corresponding General Ledger account number (except for meals
and allowances). Each code must have a maximum amount that will be taken or
added to the employee's wages. If there is no maximum deduction or earning
then enter 0 for this amount.
All of the tax calculations are
computed individually on each Deduction/Earning code. Each Deduction/Earning
code is established to be either exempt Y or N (if it's a
earning) or included Y or N (if it's a deduction) for the
calculation of various types of taxes. These Y or N controls
will determine the exact taxable base for each type (FWT, FICA, FUI, SUI, etc.)
of payroll tax. When a deduction code is entered, will be prompted with
"Is This a Before Tax Deduction". If you answer Y to this
question then you will need to fill in the correct Y or N answer
for each type of withholding tax. If the answer is N, then all of the
withholding tax computations should be flagged as N.
For example:
A before tax deduction code for
a pension plan may be included for the computation of FWT (to reduce the
taxable base of FWT) but not for FICA, FUI, and others. Likewise, after tax
deduction code for a United Way contribution would not be included (the tax
base would not be reduced) for any withholding tax computation. It is
advisable that you consult with your accountant or tax adviser to help in
determining how each of your Deduction/Earning codes should affect the tax
computation on each specific type of payroll tax.
Certain deductions are regularly
taken: weekly, monthly, etc. These deductions may be entered directly onto
the Employee File. The computer will take these deductions
automatically each specified pay period. Regular deductions often include
insurance, etc. Regular periodic deductions for union, savings bonds, employer
loans, and garnish payments do not need a deduction code since these are
handled separately in the Employee File. However, such deductions taken
randomly would require their own deduction code.
Other deductions or
earnings occur intermittently or differ in dollar amounts from period to
period. These irregular or temporary deductions/earnings are entered when the
employee's time is entered in the Time Transaction Processing application.
A temporary deduction/earning will be included in the employee's pay for that
pay period only. Common temporary deductions or earnings include such things
as uniform allowances, breakage fees, petty cash advances, supper allowances,
etc.
Select Deduction/Earning
Code File from the pull down PR Maintenance window. The
following screen will then be displayed:
Deduction/Earning Code File
Entry Screen
The following options
are available:
* Select
the desired mode from the Deduction/Earning Code File menu bar
* Enter
the data requested on the screen
To return to the menu bar, press the ESC or F10
key. To leave this application, press X for EXIT when positioned
at the menu bar.
Entry Field Descriptions
|
Name
|
Type
and Description
|
|
1. Code
|
2 alphanumeric characters.
Each type of deduction/earning used in the Payroll
package must be given a unique two‑character code. It is helpful to
separate deductions and earnings types by recognizable codes.
e.g. A1, A2 for allowances
D1, D2, D3 for deductions
E1, E2, E3 for earnings
M1, M2 for meals
T1, T2 for tips
In change and delete mode,
press the F7 key to search for code.
|
|
2. Description
|
7 alphanumeric characters.
This description appears on
the screen when the Deduction/Earning code is entered. It also appears on
the check stub.
|
|
3. Type
|
1 alphabetic character.
The Deduction/Earning Code File type may be one
of five values (one of three for non‑restaurants).
These values are:
A ‑ Taxable
earning added to the employee's taxable gross wages but not added to net pay.
D ‑ Deduction
from either the employees net pay or as a reduction of each tax withholding
basis.
|
|
Type (continued)
|
E ‑ Earnings
either added or not added to the employee's taxable gross wages.
R - Employee
reimbursement.
For restaurants:
M ‑ The
taxable value of meals given the employee.
T ‑ Tips
received by the employee reported to the employer or tips paid to the
employee by the employer.
Meals (M) and Tips (T) are given special
tax handling in accordance with federal regulations and are not added to or
subtracted from net pay.
However, tips may be added
to net pay if the Add Tips To Net Pay question is Y.
|
|
4. G/L Acct No
|
An account number in the
standard account number format.
This is the General Ledger account, which
corresponds to the liability/expense of the deduction/earning. The General
Ledger account may be entered only for earnings or deductions; not for
allowances or meals, as they do not affect the transfer of funds in payroll
other than to influence the magnitude of withholding liabilities.
In add mode, for allowances and meals, the General
Ledger account field will be skipped entirely.
Note: For tips this account
number will be used only if the Add Tips To Net Pay question is Y.
If the profit center and department account numbers of
an earning is all 9's, then upon posting of the earning to the Payroll
Distribution file, the main account from the number entered here will be
used, along with the profit center and department from the employee's wage
account. This can only be done for earnings E.
Pressing the F7 key
will allow you to search for an account by number or pressing the F8
key will allow you to search for an account by description.
|
If the Type (field #3) is
A, E, M, or T then the following fields apply:
|
Name
|
Type
and Description
|
|
5. Emp Exempt From Fica ?
|
Y or N.
Answer Y if this earning
is exempt from employee FICA contribution calculations. The default value is
N.
|
|
6. Emplr Exempt From Fica ?
|
Y or N.
Answer Y if the
employers FICA contribution is exempt from this earning. from the employer
FICA contribution calculation. The Default value is N.
|
|
7. Exempt From Fwt ?
|
Y or N.
Answer Y if the
employee FWT calculation is not to include this earning. The default value
is N.
|
|
8. Exempt From Fui ?
|
Y or N.
Answer Y if the
employer FUI tax calculation is not to include this earning. The default
value is N.
|
|
9. Exempt From Swt ?
|
Y or N.
Answer Y if the
employee State Withholding Tax is not to include this earning. The default
value is N.
|
|
10. Exempt From Cwt?
|
Y or N.
Answer Y if this
earning is not to be included in the employee City Withholding Tax. The
default value is N.
|
|
11. Exempt From Ost ?
|
Y or N.
Answer Y if this
earning is not to be included in any Other State Tax for the employee. The
default value is N.
|
|
12. Exempt From Sui ?
|
Y or N.
Answer Y if this
earning is exempt from the employer State Unemployment Insurance
calculation. The default value is N.
|
|
13. Exempt From Eic ?
|
Y or N.
Answer Y if the
earning is not to be included in the employee EIC calculation. The default
value is N.
|
|
14. Exempt From W.C. ?
|
Y or N.
Answer Y if the
earning is not to be included in the employer Workers Compensation
calculation. The default value is N.
|
If the Type (field #3) is
an A or E the following fields apply:
|
Name
|
Type
and Description
|
|
15. Maximum Amount
|
7 numeric digits with 2
decimal places (99,999.99).
Enter the maximum amount of
the earnings that should be paid to the employee. If their is no maximum then
this field should be left blank. The default value is 0.00.
|
|
16. Max Per Period or Year
|
Y or P.
If you select P the maximum amount is payment
per pay period.
If you select Y the maximum amount is per year.
The default value is Y.
|
If the Type (field #3) is
a T, then the following field applies.
|
Name
|
Type
and Description
|
|
15. Add Tips To Net Pay
|
Y or N.
Answer Y if the tips are to be added to the
employee's net pay. Also if the answer to this question is Y a G/L
distribution record will be created for the tip amount added to net pay.
The default value is N.
|
If the Type (field #3) is
a D then the following fields apply.
|
Name
|
Type
and Description
|
|
5. Include For Emp Fica?
|
Y or N.
Answer this Y if the
deduction should reduce the taxable base for the Employee calculation of
FICA. The default value is N.
|
|
6. Include For Emplr Fica?
|
Y or N.
Answer this Y if the
deduction should reduce the taxable base for the employer share of FICA. The
default value is N.
|
|
7. Include For Fwt ?
|
Y or N.
Answer this Y if the
deduction should reduce the employee federal tax withheld base for the
tax-withheld computation. The default value is N.
|
|
8. Include for Fui ?
|
Y or N.
Answer Y if the
deduction should reduce the taxable base for the federal unemployment
insurance.
|
|
9. Include For Swt ?
|
Y or N.
Answer Y if the
deduction should reduce the taxable base for the employee state tax
withheld.
|
|
10. Include For Cwt?
|
Y or N.
Answer this Y if the
deduction should reduce the employee City Withholding Tax base. The default
value is N.
|
|
11. Include For Ost?
|
Y or N.
Answer this Y if the
deduction should reduce any Other State Tax to the employee. The default
value is N.
|
|
12. Include For Sui ?
|
Y or N.
Answer this Y if the
State Unemployment Tax base is to be reduced by the deduction. The default
value is N.
|
|
13. Include For Eic ?
|
Y or N.
Answer this Y if the
employee EIC base is to be reduced by the deduction. The Default value is N.
|
|
14. Include For W.C. ?
|
Y or N.
Answer Y if the
employer Worker's Compensation Tax base should not include the deduction.
The default value is N.
|
|
15. Maximum Amount
|
7 numeric digits, with 2
decimal places (99,999.99).
Enter the maximum amount of
the earning or deduction an employee can take. If their is no maximum then
this field should be zero. The default value is zero.
|
|
16. Max Per Period or Year
|
Y or P.
If you select P the maximum amount is for
payment period, or if you select Y the maximum amount is for year.
The default value is Y.
|
|
Date filled
out________by__________ ADD CHANGE DELETE
DEDUCTION/EARNING
CODE FILE MAINTENANCE LOAD SHEET
1. Code
_ _
2. Description _
_ _ _ _ _ _
3. Type
_ D = Deduction E = Earning
A = Allowance M = Meals T = Tips
4. G/L Account # _ _ _ _
_ _ _ _ ‑ _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _
5. Include For Emp FICA _
6. Include For Emplor FICA _
7. Include For FWT _
8. Include For FUI _
9. Include For SWT _
10. Include For CWT _
11. Include For OST _
12. Include For SUI _
13. Include For EIC _
14. Include For W.C. _
15. Maximum Amount _
_ , _ _ _ . _ _
or
Add Tips To Net Pay _
16. Max Per Period or Year
_ (Y = Year, P = Per Period)
Date Entered________By_________
Date Verified__________by____________
|
Load Sheet
Deduction/Earning Code File
Maintenance
D E D U C T I O N A N D E A R N I N G C O D E S L I S T
Deduction/Earning
Types: D=Deduction A=Earning (NOt Added To Net) E=Earning (Added To Gross)
M=MealS T=Tips
Code
Description Type Account‑No Account Description
Maximum Amt Taxable Flags
99
insure D 00025‑02345‑00000
Include
For Emp Fica ? Y
Include For Emplr Fica ? Y
Include For
Fwt ? Y
Include For Fui ? Y
Include For Swt ? Y
Include For Cwt ? Y
Include For Ost ? Y
Include For Sui ? Y
Include For Eic ? Y
Include For W.C. ? Y
Max Per Period Or Year ? Y
BC
Bluecrs D 02250‑00000‑00000 Blue Cross Premiums Payable
Include For Emp Fica ? N
Include For Emplr Fica ? N
Include For Fwt ? N
Include For Fui ? N
Include For Swt ? N
Include For Cwt ? N
Include For Ost ? N
