Adding an Earning or Deduction Code

Before you start

Before adding an earning or deduction code:

  • Consider the levels of the earning/deduction that you want to add.
  • Determine the G/L account numbers to which you want the earning/deduction amount to post.

To add an earning, deduction, benefit, or accrual

  1. Open Payroll Setup > Earnings And Deductions.
  2. In the Earning/Deduction field, type a six-character code identifying the earning/deduction.
  3. In the Description field, type a description of up to 30 characters.
  4. Type a short description of up to 15 characters. The system prints as much of the short description on W-2s as will fit, so make the first characters meaningful. The short description may display on reports and data entry windows to save space.
  5. At the Category field, select the category from the list.
  6. At the Type field (that displays for earnings, advances, accruals and benefits), select the type from the list.
  7. At the Employee and Employer Calculation Method fields, when applicable, select the calculation method from the list.

    Note: The window's tabs and fields may change, according to the earning/deduction category, the type, and the calculation method. You will see only the appropriate tabs and fields for each category/type/calculation method.

  8. Add the rest of the earning/deduction information.
  9. When you have completed the information, click Add.
  10. If you have not entered all the required fields, the program will prompt you to enter the missing information.

After Adding an earning or deduction code