Earnings/Deductions
You must define a calculation base for all earnings/deductions that use the following calculation methods:
- Amount Per Hour
- Hours Per Hour Worked
- Percentage Of Base
- Wage Bracket Table
The calculation base for an earning/deduction has four possible components. Depending upon the calculation method you associate with an earning/deduction, you may need to define one, two, three, or all of these components.
- If you set up an accrual, earning, deduction, or benefit that uses either the Amount Per Hour or Hours Per HourWorked calculation method, you must indicate which of the hours worked the earning/deduction is to be based on, under the Base Hours Include section of the Calculation Base tab of the Earnings And Deductions window.
The Finder displays a list of the hours-based earnings and accruals you can use in calculating the number of hours on which this earning/deduction is based. The earnings and accruals that display for selection have levels lower than the level of the accrual, earning, deduction, or benefit you are setting up.
The earnings included in the calculation base must be of the type Salary and Wages and must use the calculation method Flat, Fixed, Hourly Rate, Piece Rate Table, or Sales Commission Table. You can choose to include or exclude regular or overtime hours.
Select some or all of the hours-based earnings and accruals to build the calculation base used in calculating amounts for the earning/deduction you are setting up.
- If you set up an accrual, earning, or benefit that uses the Percentage Of Base or Wage Bracket Table calculation method, you must indicate the earnings and deductions that make up its calculation base, in the following sections of the Calculation Base tab of the Earnings And Deductions window:
- Base Earnings Include
- Base Deductions Include
The Finder displays a list of accruals, benefits, and earnings and a list of deductions, all of which have levels lower than the level of the earning/deduction being set up. You select some or all of the items in each list to build the base used in calculating amounts for the earning/deduction.
- If you set up a deduction that uses the Percentage Of Base or Wage Bracket Table calculation method, you must indicate the earnings, deductions, and, in the case of a net pay-based deduction such as a wage garnishment, taxes that make up the deduction's calculation base, in the following sections of the Calculation Base tab of the Earnings And Deductions window:
- Base Earnings Include
- Base Deductions Include
- Base Taxes Include
The Finder displays lists of earnings (including accruals and benefits), deductions, and, in some cases, taxes, all of which have levels lower than the level of the earning/deduction being set up. You select some or all of the items in each list to build the base used in calculating amounts for the earning/deduction.
- If you set up a two-sided deduction, which is a deduction that uses different employee and employer calculation methods, you may build the deduction's calculation base using a different scenario from the three enumerated above.
For instance, if you set up a pension plan deduction that uses an Amount Per Hour employee calculation method and a Percentage Of Base or Wage Bracket Table employer calculation method, you would indicate the base hours, the base earnings, base deductions, and base taxes included in the calculation of the deduction, in the following sections of the Calculation Base tab of the Earnings And Deductions window:
- Base Hours Include
- Base Earnings Include
- Base Deductions Include
- Base Taxes Include
Taxes
You must define a calculation base for all income taxes.
Indicate the earnings and deductions that make up the calculation base for the tax, in the following sections of the Calculation Base tab of the Income Taxes window:
- Base Earnings Include
- Base Deductions Include
The Finder displays a list of accruals, benefits, and earnings and a list of deductions, all of which have levels lower than the level of the tax being set up. You select some or all of the items in each list to build the calculation base used in calculating amounts for the tax.
If a tax's calculation base includes accruals, benefits, earnings and deductions, the calculation base is equal to accruals plus benefits plus earnings minus deductions. If deductions exceed earnings, the Finder does not calculate an amount for the tax.