Create and maintain the Earnings records for various types of wages, fringes, and other compensation provided by your firm. You may also create Earnings records to be used exclusively for Job Costing.
A separate Earnings record should be created for every type of GL "breakout" you wish to show for: Salary, Pension, Medical, Job Costing Overhead, Job Costing Payroll Taxes, etc.
Registry Entry for Compute Payroll
Registry Entry Work Order Options
Registry to Force Earnings Credit GL Entity to Always Follow Debit GL Entity on PR Accruals
Use Control Records' GL Entities for PR Deductions, Earnings, Taxes, etc,.Instead of Employees'.
Earnings records are required for Payroll, and are referenced in the Earnings Group records, the Earnings tab of the Payroll Adjustment Journal, and the Employee record. The Unit Cost field in the WorkOrder Labor tab and Labor Journals are defaulted from the Earnings Id's and used for Job Costing. This record also specifies the GL Accounts to be debited and credited during the Compute Payroll and Post Payroll to GL functions (if not overridden by a GL Account in the Pay Type record).
Validation makes the user aware that Earnings records defined as 'non-taxable wages' do not make sense.
Canadian Users:
Canadian T4's use the W2 Category fields in the Deductions & Earnings records to populate the Other Information boxes on the T4. The W2 category must be filled in as OI:(Code # for T4). The Employee User 7 field is used to print the registration number in box 50 on the T4.
Enter Pension Adjustments using Earning Id's with the W2 Category set to 52. These Pension Adjustment amounts will be printed in Box 52.
RPP Contribution amounts should be entered using an Earnings Id with the W2 Category set to 20. These will be printed on Box 20.
Supports the processing of exempt earnings for the calculation of Box 14 Employment Income.
Note: this Help Topic lists the standard configuration of fields that may be included in this record. If you are using a customized system, the fields displayed on your screen may not match the fields described here.
Earnings Id:(15 character, only . and - special characters)
A unique Id for Earnings wages or fringes. This field is required.
Earnings Description: (40 character)
A brief description. This field is optional but recommended.
Obsolete?
If this field is checked, the record is considered Obsolete, and it may not be directly specified during data-entry (either by entering the Id or selecting it from a list). Obsoleted records can be edited and the Obsolete option can be un-done when necessary. When you check the Obsolete field, the following message box will be displayed:
“You have elected to obsolete this record. Would you like to see existing references to this record?”
If you click Yes, the system will display a viewer that provides click-through access to all tables referencing this record: see References List for details.
Check Label: (10 character)
The label you wish to appear on payroll checks for labor or fringes of this type.
Cost Category Id:
This field should be ONLY completed if this earnings record is used for Type = "FRINGE" and "JOB COST PR CHECK" is also checked. It is used by the system to post actual fringes vs. estimated (source PR Check) during the POST CHECK function.
Note: When entering time, the Cost Category defaults from the LABOR RATE (if set) to capture WAGES. This is a requirement for TechAnywhere (as user can not pick/select the cost category in TechAnywhere).
Trumping Rules For GL Posting of Wages type Earnings:
If the registry option "WageExpenseAccountFromCostCategory=true" (see Registry Entry for Compute Payroll ) , the GL Expense Account in the Job Cost Category will TRUMP the GL Account in the Pay Type. This registry controls system behavior even if your company is not computing payroll.
The GL Account in the Pay Type will TRUMP the GL Debit Account in the Earnings viewer
The GL Debit account in the Earnings viewer will be used providing the Pay Type GL Account is not set up and the registry option is not set to use the GL Expense account in the Cost Category.
Type:
The Type determines how this record will be handled by the system for Payroll and/or Job Costing purposes. If this record be used for Job Costing be sure to flag one of the Job Cost boxes below.
Select Wage (by double-clicking on its radio button) if this record will be used to compute wages or salary.
Select Fringe if this is a fringe benefit.
Select Burden for Job Cost Burden records. In previous releases, this Type was listed as N/A.
Standard Cost would be selected if the client wished to avoid posting pay rate-based costs to Job History for privacy reasons for some or all of its employees. For this setup:
Earnings records of Type Wage would have the Job Cost Labor Entry and Job Cost PR Check fields blank so they would not be Job Costed.
One or more Earnings records of Type Standard Cost would be created with one of the Job Cost fields flagged.
Each employee this setup is applied to would have a Wages line and a Standard Cost line on their Employee Earnings Tab. The Wages line would be used for computing payroll, but the Standard Cost line would be used for Job Cost reporting that managers and other personnel might have access to.
Taxable?
Check the Taxable box by double clicking on it (or pressing Spacebar) if earnings of this type are taxable. For example, Earnings records created for Job Costing (such as JC Overhead) and Pension Fringes would not be taxable. An Earnings record for Salary would be taxable. See Registry Compute Payroll for an option to specify exceptions to Taxable Fringes via the User1 or User2 fields.
Job Cost Labor Entry?
If earnings of this type are used for Job Costing purposes, check the Job Cost box by double clicking on it (or pressing Spacebar); Job Costing entries will be generated from Labor Journal (and Work Order Labor) lines. Note that if this box is checked, the Job Cost PR Check? box should remain blank. Note the Certified PR Report uses the Fringe Cost that is written to Job Cost History.
Job Cost PR Check?
If this box is checked, job cost entries for fringes of this type will be generated when payroll is computed. Note that if this box is checked, the Job Cost Labor Entry? box should remain blank. If this box is checked, the registry option ImportPRCheckFromJCH=true should be set as described in the Registry Entry Work Order Options topic.
Generating Job History Descriptions:
If this box is checked, see the "JCH Description’ section in Registry Entry for Compute Payroll if you wish to generate descriptions for the various types of allocated P/R expenses in job history.
Setup Tip: When using the "Job Cost PR Check" method, you may wish to set up multiple Cost Categories for: FRG-union1, FRG-union2, etc.
Note: GL Expense Account and Overhead vs. Non-Overhead Jobs:
1. When the fringe is being charged to an overhead job, the GL Account is the debit account from the fringe Earnings record.
2. When the job is not an overhead job AND the 'PRExpenseAccount' registry entry is set, then the registry entry specifies the GL Account to use.
3. When all else fails, the GL Expense Account from the Cost Category is used.
In this case, a flag has been added to the Earnings record to allow selection of specific N/A earnings to discount.
CIP Discount?
If this field is flagged and the Earnings Type is N/A, the CIP Discount specified in the Job will be applied to this Earning record if the CIP Discount field is also specified in the Job Cost Code record.
Upgrade Note: If CIP Discounts were implemented in Version 9.0, this box MUST be flagged for the discounts to continue to be taken. In the original implementation, all N/A-type earnings were subject to CIP Discounting.
Accrue?
If earnings of this type are to be accrued, check the Accrue box by double clicking on it (or pressing Spacebar). If this box is checked, the GL Credit Account must be completed with the appropriate accrued payroll account.
Wages Example:
Pay period = Accrue to GL
Earnings Record
type = wages, Accrue to GL & Job Cost Labor Entry boxes checked
debit - cos
credit - accrued P/R liab
The system will post the entry based on the date WORKED to GL and to Job history.
When check is cut, system will debit the Accrued P/R liab - this is based on CHECK date.
So, if you work in Nov and pay in Dec, the system will cost it to the Job & GL in November (dr cos / cr accrued PR Liab) and then reverse the accrual in Dec when check is posted (dr accrued PR Liab / cr cash).
Fringe Example:
Prior to Version 9.0, you could not accrue an Earnings ID marked Fringe because it would be double-costed when Print/Post Payroll Checks was run. This made it necessary to set up 2 Earnings Id's to book estimated fringes, and then to make an adjustment at month or quarter end to 'adjust' the cost estimates to match the actual.
In Version 9.0, Compute Payroll no longer generates Fringe Expense and Liability GL activity for fringes that have been accrued so that Fringe-type Earnings may be marked as Accrue. Note that users who did not print/post Payroll checks were always allowed to accrue the Fringes.
Note: Consult your Data-Basics Support Rep before changing any existing Fringe Earnings to the new methodology. The older setup shown below will continue to work.
Earnings 1 - Estimated Fringe (or Burden)
type = n/a , Accrue to GL, Job Cost Labor Entry boxes checked
debit - COS applied fringe (estimated)
credit - pre-distributed fringe G&A expense (system does not reverse this)
Earnings 2 - Actual Fringe
type = fringe, no boxes checked
debit - fringe expense (actual)
credit - Union Benefits Fringe Liab
Earnings 1 - posts to the Job and GLhistories with the date WORKED (if Job = Overhead, posts to JCH, not GLH).
Earnings 2 - posts to the GL with CHECK DATE
An adjustment will need to be done at month or quarter end to 'adjust' the cost estimates to match the actual.
Show Fringe on Check Stub:
Fringe on Check?
This field would typically only be used for Canadian Vacation Pay. If the SAMPRO user wants the Vacation Benefit to appear as a 'fringe' on the PR Check, the Earnings record's 'Fringe on Check?' option must be set to True. With this option On, the check will continue to show the sum of the earnings as the hourly rate but it will also include the amount paid for the Vacation Benefit in the Fringes section of the check stub. This means the user should also enter a value in the Earnings record's Check Label field.
Setup: Note that in the Earnings Record (for Canadian Vacation pay), the Type would be set to Wage so that the employee has the amount added into each hour's pay. Typically, this would not be Job Costed.
Employee Record or Earning Group: Verify that the applicable Earnings is included in the Earnings list. By Canadian law, the Amount is either 4 percent or 6 percent of wages. The Add Pay Rate Factor should be set to True.
Reporting: It is important to note that in the case of a $10/hour wage rate and 4% Vacation Benefit, the Regular Pay Rate is $10.40 as far as SAMPRO is concerned. That means all SAMPRO reports, including the PR Check, will show the rate as $10.40.
GL Debit (Indirect)
GL Account Id:
The expense account earnings are going to when the Compute Payroll and Post Payroll to GL functions are run for Overhead Jobs. However, if the GL Expense Account in the Pay Type record is filled in, the GL Account in the Pay Type record will be used instead of the GL Debit (expense) account in the Earnings record for the compute and post. In essence, the GL expense account in the Pay Type record has precedence over the GL Debit (expense) account in the Earnings record if both are filled in.
Trumping Rules For GL Posting of Wages type Earnings:
If the registry option "WageExpenseAccountFromCostCategory=true" (see Registry Entry for Compute Payroll ) , the GL Expense Account in the Job Cost Category will TRUMP the GL Account in the Pay Type. This registry controls system behavior even if your company is not computing payroll.
The GL Account in the Pay Type will TRUMP the GL Debit Account in the Earnings viewer
The GL Debit account in the Earnings viewer will be used providing the Pay Type GL Account is not set up and the registry option is not set to use the GL Expense account in the Cost Category.
GL Entity Id
Optional. The Entity charged for Fringe expense for Indirect Jobs. However, if a GL Entity Id has been entered in the Employee record, the credit for Fringes will be applied to the Entity in the Employee record. (If the GL Entity Id field is blank in the Employee record, the system will credit the GL Entity in the Fringe Earnings record.)
NOTE: This GL Debit Entity is currently only applicable to Earnings of type Fringe.
GL Debit (Direct)
GL Account:
The GL Account expense account earnings / accruals are posted to for Direct Jobs when the Payroll and Post Payroll to GL functions are run.
GL Entity:
The Entity charged for expense for Direct Jobs. These fields are reserved for future use. The database conversion process these new fields from the original GL Debit (Indirect) fields.
GL Credit
GL Account Id:
The liability account to be credited when Compute Payroll and Post Payroll to GL functions are run (e.g., Accrued Salaries and Wages). This field is required if you are accruing payroll.
GL Entity Id:
Optional. The Entity (department or profit center) to be credited. This field will be trumped by the GL Entity in the Employee Record if present.
This field will also be trumped if the following registry is enabled to force the Credit to follow the Debit::
Registry Id: sys-ffv-global-settings Setting Key: PRAccrualGLEntityMatch Setting Value: true (default false)
This behavior may be overridden via Use Control Records' GL Entities for PR Deductions, Earnings, Taxes, etc,.Instead of Employees'.
W-2 Category:
The purpose of this field is to enable the user to write to various W2 (US) or T4 (Canada) boxes by entering a 2-character box number (in the case of box 12, followed by a code) in the appropriate W-Category box. Note that only those boxes that can be controlled by an Earnings or Deduction entry to PR History (via normal processing Compute or PR Adjustm4 entries) are supported.
US Entries:
Note: please consult the IRS website / your firm’s CPA before proceeding. The system does NOT validate that a particular earning or deduction is configured correctly for particular box/code as far is IRS rules are concerned. The W2 functionality is implemented by querying PR History for entries when the Earning or Deduction record’s W-2 Category is completed, and then summing the entries for each particular category. The user MUST ensure and test that the W-2 Category field is configured in such a way as to give the desired result.
Value Use
07 Social Security Tip
08 Allocated Tips
09 Advance EIC payment
11 Non Qualified Plans
12:code Assorted Wages and Fringes
The software supports box 12 entries for certain wages and
fringes that are are recorded to PR history.
12:DD Support for Employer Sponsored Health Coverage
This reporting requirement was introduced by the 2010 Affordable Care Act. The idea is that reporting the cost of healthcare will enable employees to be better informed about their healthcare costs and the choices available to them. For 2012 the reporting is required for employers filing more than 250 W-2s. The 250 limit may be reduced in the future but for the moment small employers are not required to report the cost of healthcare coverage.
SAMPro can handle this by treating the Employer Sponsored Health Coverage as a non-taxable fringe and using the PR Adjustments Journal to record the dollar amounts that are appropriate for each employee. The applicable PR Adjustment entry should be made for each employee. The GL transactions would already have been made, the PR Adjustment entry gets it on the W-2.
14:label The preferred functionality for Box 14 is implemented by entering SDI
in the Tax Table User 1field (or Tax Authority User 1 Field). This overrides its implementation in an Earnings or Deduction record.
Canadian Entries:
Earnings records may be set up with a W2 Category of OI:40 and an Earnings Type of Wage for use in T4 processing.
Canadian T4's use the W2 Category fields in the Deductions & Earnings records to populate the Other Information boxes on the T4. The W2 category must be filled in as OI:(Code # for T4). The Employee User 7 field is used to print the registration number in box 50 on the T4.
Earnings User1-5:
These optional fields may be used for entering any information your company wishes to retain (e.g., additional account numbers).
See Registry Compute Payroll for an option to specify exceptions to Taxable Fringes via 1 or User2 fields. If enabled via registry these fields may be used to specify a list of Tax Groups or Tax Authorities for which tax should NOT be assessed if enabled via the above registry setting:
If the Earning Record is of Type Fringe, with the Taxable box checked AND
The FringeTaxExceptionsUser1 or FringeTaxExceptionsUser2 registries are set AND
The Tax Table is specified as 'Always Withhold' on the Employee's taxes tab.
Security Id:
If multiple location security is implemented on your centralized database system, this informational field displays the Security Id of the local user that created this record. If multiple location security is not implemented on your system, or if this record was created by a global user, this field will be blank.