Setting Up Earnings Data

This chapter provides an overview of earnings and discusses how to:

Set up earnings codes and earnings programs.
Set up and maintain additional pay.

Understanding Earnings

Payroll Interface does not calculate earnings. You use Payroll Interface to track and export changes to earnings data that occur during a pay period. The third-party payroll system performs the earnings calculations and the gross-to-net calculations.

Payroll Interface recognizes two earnings categories, regular earnings and additional pay. Regular earnings refers to the employee earnings that are entered on the Job Data component, for example, regular or overtime pay. Additional pay refers to employee earnings that are entered on the Additional Pay component and represents earnings that an employee is paid on a regular basis in addition to regular earnings, for example, a vehicle allowance.

Two earnings components are included with Payroll Interface, the Earnings Table (EARNINGS_TABLE) component and the Earnings Program Table (EARNS_PROGRAM_TBL) component:

The primary purpose of the earnings components is to enable you to set up the earnings codes and earnings program that are required on the Pay Group Table component, Calc Parameters (calculation parameters) page.
A secondary purpose of the earnings components is to enable you to set up earnings codes for additional pay and to add these codes to the earnings program.

Setting Up Earnings Codes and Earnings Programs

To set up earnings codes and earnings programs, use the Earnings Table (EARNINGS_TABLE) and Earnings Program Table (EARNS_PROGRAM_TBL) components.

This section provides an overview of earnings codes and earnings programs and discusses how to:

Set up earnings codes.
Set up earnings programs.

Understanding Earnings Codes and Earnings Programs

An earnings code defines a type of earnings, for example, maternity leave. You set up earnings codes for regular earnings as well as additional pay. To satisfy the requirements of the Pay Group Table component, Calc Parameters page, you must set up default earnings codes for regular, overtime, and holiday pay.

An earnings program defines a set of earning codes that is valid for one or more pay groups and the employees who belong to those pay groups. To satisfy the requirements of the Pay Group Table component, Calc Parameters page, you must set up a default earnings program that includes the default earnings codes for regular, overtime, and holiday pay.

Pages Used to Set Up Earnings Codes and Earnings Programs

Page Name	Object Name	Navigation	Usage
Earnings Table - General	EARNINGS_TABLE1	Set Up HRMS, Product Related, Payroll Interface, Earnings, Earnings Table, General	Set up earnings codes. The Payment Type, Effect on FLSA, and Eligible for Retro Pay group boxes are not used by Payroll Interface.
Earnings Program Table	EARNS_PROGRAM_TBL	Set Up HRMS, Product Related, Payroll Interface, Earnings, Earnings Program Table, Earnings Program Table	Set up the earnings program.

Setting Up Earnings Codes

Access the Earnings Table - General page.

Note. To set up the earnings codes that are required for the Pay Group Table component, use only the General page (ignore the Taxes, Calculation, and Special Processes pages).

To set up earnings codes for additional pay, use the General page and, if necessary, the Taxes, Calculation, and Special Process pages.

Setting Up Earnings Programs

Access the Earnings Program Table page.

Setting Up and Maintaining Additional Pay

To set up and maintain additional pay, use the Additional Pay (ADDITIONAL_PAY) component.

This section provides an overview of additional pay and discusses how to set up additional pay.

Understanding Additional Pay

Additional pay refers to earnings that an employee is paid on a regular basis in addition to regular earnings, for example, a vehicle allowance, variable compensation, or benefit credits. (Do not confuse additional pay with one-time payments, such as overtime or an expense reimbursement.)

To set up and maintain additional pay:

Use the Earnings Table component to set up an earnings code for the additional pay.
Use the Earnings Program Table component to add the earnings code to the earnings program.
Use the Additional Pay component to set up and assign the additional pay to an employee.

Page Used to Set Up and Maintain Additional Pay

Page Name	Object Name	Navigation	Usage
Additional Pay	ADDITIONAL_PAY1	Payroll Interface, Update Payroll Information, Additional Pay, Additional Pay	Set up and assign additional pay earnings to an employee. Specify a different department to charge for the additional pay. Change employee tax data for additional pay.

Page Name

Object Name

Navigation

Usage

Additional Pay

ADDITIONAL_PAY1

Payroll Interface, Update Payroll Information, Additional Pay, Additional Pay

Set up and assign additional pay earnings to an employee.

Specify a different department to charge for the additional pay.

Change employee tax data for additional pay.

Setting Up Additional Pay

Access the Additional Pay page.

Addl Seq # (additional sequence number)

Select 1 unless there are multiple additional pay records.

Hours, Hourly Rate, and Earnings

Select to indicate whether additional pay is hours multiplied by an hourly rate or a fixed amount, but not both.

If an hourly rate is indicated, but the field is left blank, information is automatically populated from the employee’s job record.

Goal Amount

Select to have your payroll system stop issuing this additional pay when the amount has been reached.

Applies to Pay Periods

Select the appropriate options to indicate the pay periods in which this additional pay should be identified in your payroll system.

For example, if an employee were paid twice a month, but received a monthly car allowance, you would select either First or Second, but not both.

Job Data Override

Use the Job Data Override group box to change the department that is charged for the additional pay.

Position, Business Unit, DeptID, Job Code, Combination Code, GL Pay Type	Select any of these fields to override the default value.
Addl Shift (additional pay shift)	Select Use Job to use the shift that is specified on the employee’s Job record.

Tax Information

Use the Tax Information group box to modify the employee’s state and local tax data.

State	Select to enter the state that the employee worked in, if different from the employee’s regular pay. This field is validated against the employee’s state and local tax data.
Locality	Select to enter the locality that the employee worked in, if different from the employee’s regular pay. This field is validated against the employee’s state and local tax data.

Addl Seq # (additional sequence number)	Select 1 unless there are multiple additional pay records.
Hours, Hourly Rate, and Earnings	Select to indicate whether additional pay is hours multiplied by an hourly rate or a fixed amount, but not both. If an hourly rate is indicated, but the field is left blank, information is automatically populated from the employee’s job record.
Goal Amount	Select to have your payroll system stop issuing this additional pay when the amount has been reached.
Applies to Pay Periods	Select the appropriate options to indicate the pay periods in which this additional pay should be identified in your payroll system. For example, if an employee were paid twice a month, but received a monthly car allowance, you would select either First or Second, but not both.