This program allows the user of the FACTS system to define all types of wages paid to and hours worked by employees.
All types of hours and wages must be defined in this program. Earnings may or may not be associated with the number of hours worked. Examples of wages paid independent of hours worked are mileage, travel reimbursements, bonuses, commissions, etc. Hourly wages may be for regular, sick, vacation, overtime, etc. hours.
The user determines if the earnings are considered premium (i.e., overtime) and if various payroll taxes are withheld. The option to use maximum hours tracking is also available.
CAUTION! Deleting an earnings code that is used in the Code Sequence F/M program may endanger the integrity of the payroll data files.
For more information how to use maintenances, refer to the following topics:
How to use file maintenance programs
1. Earnings Code
Enter the earnings code (up to 4 characters). F2 allows a search.
2. Description
Enter the description of this code (up to 15 characters).
3. Hourly
Enter either Y or N to indicate if wages paid in this category depend on the number of hours worked. Enter (CR) initially defaults to Y.
4. Premium Earnings
Enter N or Y to indicate if this earnings category uses earnings calculations other than straight time (for example, time-and-a-half or double time). This field is used in conjunction with the hours multiplier field. Enter (CR) initially defaults to N.
5. Fringe Benefit
Enter N or Y to indicate whether the earnings for this code is included as a fringe benefit on the W-2. If Y is entered, the amount for this earnings code prints in the Fringe Benefits box on the W-2. Enter (CR) initially defaults to N.
6. Matching Deduction
Enter N or Y to indicate whether the earnings code has a matching deduction. This is used when a deduction must also show as earnings for taxable income on the W-2. If Y is entered, users must set up the same 4-character deduction code. When setting up employee pay cycle data information, enter the deduction but leave the earnings blank. The system adds the deduction amount to the earnings code. Ultimately, the earnings and deduction amounts total zero, however, the deduction is taxable earnings.
7. Maximum Hours Tracking
This feature is only used with hourly earnings codes. Enter either N or Y to indicate if the maximum hours tracking feature is utilized for this earnings code. Enter (CR) initially defaults to N. If N is entered, this feature is eliminated for the earnings code. The maximum hours tracking feature allows the user to enter the number of hours available yearly for an employee (for example, vacation time, sick time, etc.) through the Employee Maximum Hours F/M program. An Employee Maximum Hours Report prints the yearly maximum hours, hours used year-to-date and the available hours. The Earnings Entry program flashes a message if the employee exceeds the maximum hours for an earnings code.
8. Hours Multiplier
This number is used to determine wages for hours worked in this category. This entry can be any number up to 9.999. For example, double time has a multiplier of 2. Time-and-a-half has 1.5. Enter (CR) initially defaults to 1.0.
9. Payroll Item
Enter Y or N to indicate whether Earnings Code is to be considered a payroll item. Payroll items are reported on form 941 and nonpayroll items are reported on form 945. Enter (CR) defaults to Y.