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Non-Cash Earnings
A checkbox on the Earning Codes Table allows a new earning
to be defined as a non-cash earning.
Non-Cash Earning Based on a Weekly Amount
Situation:
A
company that processes payroll weekly provides meals to their employees
for the company’s convenience. The company wants to show the $21.60 weekly
amount on the paycheck, but this is a non-cash earning that is only taxable
for SUIER and SDIER.
Setup:
Set
up a meals earning, then define Employee Auto Pays to pay $21.60 per week.
- Define an Earning Code for MEALS1.
- Enter 00 in
the Earning Amount field. Enter
00 in the Earning Percentage field.
- Select the
Print on Check and Non
Cash Earning checkboxes.
- Select Update Taxable Wages for SUI
and SDIS taxes.
- Save.
- Create an Employee Auto Pay Detail record for
each employee receiving this type of earning.
- Select the
MEALS1earning
code.
- In the Compensation
Amtfield, enter
21.60.
- Select the
regular Check Code.
- Select all
Process
Payroll of the month
checkboxes.
- Complete the
remainder of the screen accordingly.
- Save.
- Running the Create Auto Pay process creates these
records for the pay run.
Non-Cash Earning Based on Hours Worked
Situation: Another
company provides meals to their employees for the company’s convenience,
but this employer’s non-cash earning for meals is based on Hours
Worked. Again, this non-cash earning is taxable for SUIER and SDIER
only, but the setup for the non-cash earning for meals based on Hours Worked is different on the Earnings
Code for meals. For a standard 8-hour workday, the non-cash earning is
$3.60 per employee.
$ 3.60 per standard 8-hour workday = 8 hours x $0.45
$ 18.00 per standard 40-hour workweek = 8 hours x $0.45 x
5 days
Setup: Set
up a meals earning with a payroll accumulator, then define employee auto
pays to pay $0.45 per hour.
- Define an Earning Code for MEALS2.
- Enter 00 in
the Earning Amount field. Enter
00 in the Earning Percentage field.
- Select the
Print on Check and Non
Cash Earning checkboxes.
- Select Update Taxable Wages for SUI
and SDIS taxes.
- Select the
Accumulator SPTOTHOURS. Verify that the Payroll Accumulator SPTOTHOURS
is Active.
- Save.
- Create an Employee Auto Pay Detail record for
each employee receiving this type of earning.
- Select the
MEALS2earning
code.
- Enter the Hourly Rate for the earning, which is
$0.45 per hour.
- Select the
Regular Check
Code from the drop down list. Select all Process
Payroll (Periods). Complete the remainder of the screen accordingly.
- Save.
- Running the Create Auto Pay process will create
these records for the pay run. Create auto pays through the Auto Pays
Wizard for Payroll Calendars that will not process through the Payroll
Wizard. The Payroll Wizard automatically creates auto pays.