Set up earnings and deduction payroll codes

Before processing payroll, set up earnings and deduction payroll codes.

Set up earnings payroll codes

You can set up earnings pay codes to track various types of payroll earnings, such as hourly earnings, car allowances, and cell phone allowances.

To set up earnings payroll codes

  1. Choose Lightbulb that opens the Tell Me feature., enter payroll codes, and then choose the related link.

    The Payroll Codes page opens.

  2. On the action bar, choose New.

    The Payroll Code Setup Card page opens.

  3. On the Payroll Code FastTab, perform the following steps:

    1. In Type, specify Earnings.
    2. In Code, specify a code to represent the earning that you want to track.
    3. In Description, specify a description for the earning that you want track.
    4. Turn on Manual Input Allowed.

  4. If applicable, on the Canada Setup FastTab, perform the following steps:

    1. If this payroll code is exempt from income tax, turn on Income Tax Exempt.
    2. If this payroll code is exempt from Canada Pension Plan (CPP) withholdings, turn on CPP Exempt.
    3. If this payroll code is exempt from Employment Insurance (EI) withholdings, turn on EI Exempt.
    4. If this payroll code is part of the insurable hours or dollars for the record of employment, turn on ROE Applicable.
    5. Specify values for other record of employment related fields as required.

  5. Choose Lightbulb that opens the Tell Me feature., enter hr pay codes, and then choose the related link.

    The HR Pay Codes page opens.

  6. On the action bar, choose Copy from Payroll.

    This loads any payroll codes that have been created, and allows you to modify them accordingly.

  7. For every payroll code that is loaded, specify values for Pay Type and Multiplier.

Configure allowances

If the new payroll code is to be used as an additional employee allowance, you must perform some additional setup.

To configure allowances

  1. Choose Lightbulb that opens the Tell Me feature., enter allowances, and then choose the related link.

    The Allowances page opens.

  2. On the action bar, choose New.

    A new row appears.

  3. In Code, specify a code to represent the allowance.

  4. In Description, specify a description for the allowance.

  5. In Default HR Pay Code specify the default HR pay code.

  6. Specify values for other fields as required.

Set up deduction codes

You can set up deduction codes to track various payroll deductions, such as union dues and Canada Pension Plan.

To set up deduction codes

  1. Choose Lightbulb that opens the Tell Me feature., enter payroll codes, and then choose the related link.

    The Payroll Codes page opens.

  2. On the action bar, choose New.

    The Payroll Code Setup Card page opens.

  3. In Type, specify Deduction.

  4. In Code, specify a code to represent the deduction.

  5. In Description, specify a description for the deduction.

  6. If applicable, in Process Procedure Code, specify a code.

  7. Choose Lightbulb that opens the Tell Me feature., enter hr deduction codes, and then choose the related link.

    The HR Deduction Codes page opens.

  8. On the action bar, choose Copy from Payroll.

  9. If this deduction is calculated with a process procedure, perform the following steps:

    1. Choose Lightbulb that opens the Tell Me feature., enter payroll calculations, and then choose the related link.
      The Payroll Calculations page opens.
      You may have more than one payroll calculation code, as each pay period has a specific set of calculations. When adding the deduction to a payroll calculation group, ensure that you select the applicable code which indicates when you want the deduction to be calculated.
    2. Select the codes, and then on the action bar, choose Setup > Lines.
      The Payroll Calculation Lines page opens.
    3. On the action bar, choose New.
      A new row appears.
    4. In Type, specify a value.
    5. In Payroll Code, specify a value.
    6. In Formula, specify Process Procedure Table.
    7. To ensure that calculations are processing in the correct order, in Calculation Sorting No., confirm the order.

Set Up Payroll Administration
Map Benefit Plans to External Deductions
Set Up Expense and Liability Posting to the General Ledger

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