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Earnings (Payroll Tab)

This screen allows you to work with the various Earning types (the records that control the wages or salary for each employee) that will be used for this payroll. Earnings are used to define the categories of wages and salary that will be reported for employees. Although the program allows for an unlimited number of earning types, you must carefully analyze your payroll requirements to determine what earnings your business requires. Each earning you define must adhere to the CRA's requirements for assessment of employee source deductions. Examples of common earning types include: Salary, Commissions, Bonus, Regular Hours, Over Time, Shift Premiums, etc.

Earning types must be defined in order to provide pay rates for regular time, overtime, and double time. Earning types also have to be defined for those amounts that are paid out as a result of Accumulator processing.

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Common Buttons

Visit the Button Descriptions help page to view detailed descriptions of each button that appears on your screen (whether in the Button Bar at the top of the table, or in the table itself). Note: If a button's text appears in a Grey color, either the command is not applicable to the current screen, or its function has already been applied (e.g. some items can only be added once, therefore the New button will be unavailable on certain screens after it is used).

Sample command buttons



The following section displays help for the various cells and columns shown in the main table on this screen. If you see a help description on this page for a column that does not appear on your screen, you can add the additional column to your view by using the Customize option under the Views button (located at the left side of the screen just above the main table). Refer to the Customize View help page for more help on this feature.


# (Number)

Use this cell to enter a number that will uniquely identify the earning. This number can be used to as a reference to this earning when sorting earnings on this screen and also for reporting purposes.

Alt. Name

Use this cell to enter an alternate name for the earning that can be useful when used in conjunction with the program's Language feature. The alternate name can be set to a different language so that employees' pay stubs will display their preferred language. Refer to the employee's Status Parameters screen to learn more about individual employee Language settings.

Audit

This button allows you to view a list of changes that have been made to the current item. Choosing the button opens the Audit History window where item changes are shown in colored text. Note: Audit History is a developing feature and subject to updates as new functionality is added.

Bonus Tax Calc

Use this cell to specify whether the earning should be calculated as a Bonus type. For example, when an employee works regular hours, earnings are paid on a regular pay period basis. However, if an employee requests a payout of banked hours they have worked, you would classify this as a bonus calculation. Another example would be if the employee was paid out in cash, as in the case of a termination. The bonus method may also be used for exception earnings, meaning those paid on an irregular basis. For example, one-time or holiday bonuses, sales commissions paid on an irregular basis, accrued vacation pay, etc.

Editing the cell will display a checkbox where you can specify the two available options: Yes (the item will be calculated as a bonus type) or No (the item will not be calculated as a bonus type).

Bonus vs Regular - The CRA allows two different methods of calculating the tax to be deducted at source. The "bonus" method takes into account that the income is an unusual one-time payment that does not reflect your average income level for the year, and thus should be taxed less accordingly. It typically will not affect the employee's actual tax owing at the end of the year, rather only the deduction at source. It is the company's option whether to use the bonus method or the regular income method.

Calculate Method

Use this cell to specify the method that will be used when the earning is calculated. Editing the cell displays a menu where you can choose the various calculation methods that may be assigned.

Clear on Close

Use this cell to specify if the earning amounts should be reset (cleared) after the current payroll run is closed. Editing the cell will display a checkbox where you can specify the two available options: Yes (the earning will be cleared) or No (the earning will not be cleared).

This is the default action when you create an earning and is typically used for Hourly employees since their work hours are subject to change every pay period. Conversely, you would usually deactivate this option for Salary employees since their salary amounts will remain the same for each successive pay period.

Enable

Use this cell to specify whether the earning is active in the current payroll. Editing the cell will display a checkbox where you can specify the two available options: Yes (the item is active in the payroll) or No (the item in not active in the payroll).

Fixed Amount

Use this cell to specify the amount that will be used when the earning is to be calculated as a fixed amount (i.e. the By Fixed Amount option is chosen in the Calculate Method cell).

Name

Use this cell to enter the name of the earning. The name shown here will appear on various screens and reports throughout the program.

Rate

Use this cell to specify the rate that will be used to calculate the earning if the As Rate of option is chosen in the Calculate Method cell. Note: Choosing an item from this list will also require that a corresponding earning be defined in the Rate of Earning cell.

Rate of Earning

Use this cell to specify the rate that will be used when the earning will be calculated based on a multiplier of another earning (i.e. the As Rate Of option is chosen in the Calculate Method cell). Editing the cell displays a menu where you can choose from a list of available earnings. Note: Choosing an item from this list will also require that a corresponding multiplier rate be entered in the Rate field.

Short Name

Use this cell to enter an abbreviated name for the earning. This short name will be used when space restrictions are limited for screen display or printing (e.g. the employee pay stub).

Short Alt. Name

Use this cell to enter the short version for the alternate earning name (shown in the Alt. Name column). The short name will be used when space restrictions are limited for displaying or printing.

T4 Box

Use this cell to specify the T4 or T4A box to which this earning will be assigned. Editing the cell displays a drop-down menu with the available options that include:

Taxable

Use these options to specify the tax category or other item(s) to which the earning may be subject. This is necessary for earnings that affect employee statutory deduction calculations. Editing the cell displays a drop-down menu where you can choose various options that may be assigned via its corresponding checkbox. The menu also includes a search box at the top where you can type in a word(s) and have matching items displayed quickly in the list.

Type

Use this cell to specify the earning type. Editing the cell displays a menu where you can choose from a list of available types.