Working with Pay Codes

Select the Pay Class for this payment, which determines the tax liability. All classifications except for Expense Reimbursements are considered taxable. Payments classified as Non-Cash Fringe Benefit, Reported Tips, and Memo are considered non-cash.

Most pay codes define payments made to employees for services rendered (amounts earned). You would classify such payments as Earnings. In some cases, however, you might want to include amounts on a payroll voucher that are not amounts "earned" by employees as part of their normal hourly wages or salary.

Note:  Changing the pay class of a pay code that has been used can cause issues with payrolls and Form W‑2s. If you need a pay code that is similar but has a different class, create a new pay code.

Select the Calculation Method used to determine the hourly/unit rate paid with this pay code when it is entered on a time sheet.

Note:  For some methods, the Maximum Calc Hours/Maximum % of Gross Earnings field displays. Enter the maximum amount the system should use on a single pay voucher when calculating an amount based on hours worked, hours paid, and so on.

Select the Print on Paystub method to indicate how to print the pay code on the employee's pay stub.

Select Retirement Earnings if the system should use amounts paid with this pay code to calculate the employee’s elective contribution to a retirement plan.

Select the Form W-2 Box number in which this pay code’s tax year payments should print.

Select to use this pay code to pay cash wages for tipped employees, usually at the minimum cash wage required by state law.

Select to have this pay code force time sheet pay to total period pay if salaried employee and hours paid are equal to standard hours.

Note: The system uses the last detail timesheet entry for rounding.

Select to use the cash from this expense reimbursement pay code to fund voluntary payroll deductions.

Select to include this pay code in the employee's Variable Salary pay.

The Variable Salary pay method accurately tracks the hours that employees actually work. For example, non-profit companies could use this pay method to track the work hours of their employees who are paid a standard salaried amount, so they can use these hours and their allocations for grant purposes.

Note: The Include in Variable Salary Pay field only displays if the VARSALMETHOD custom feature code is enabled on the System Parameters form.

Select the fringe class to assign to this pay code if it is included in the Certified Pay Report as a fringe benefit. The system uses this for some pay reports.

Select the Pinnacle Pay Type for discrimination testing against earning codes.

Enter the heading for the Fax Back Time Sheet and the Summary Time Sheet.

Enter a custom option to enable special processing attributable to a custom feature.

If there is a reported tip pay code, you can select this field to display the Tip Sales column next to this pay code column in Summary Time Sheet Entry. (This is a memo field for recording the sale amount associated with the reported tip and is used for reporting purposes.)

Select to allow California O-type FLSA calculation of double-time hours (that is, where double-time (D/T) hours are paid at one times the regular rate of pay.) When there are more than two rates of pay or non-discretionary income, the weighted average method is used for calculation premium pay or HALF pay. (See O Method FLSA Calculation of D/T Hours.)