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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.

1. Define an Earning Code for MEALS1.

1. Enter 00 in the Earning Amount field. Enter 00 in the Earning Percentage field.
2. Select the Print on Check and Non Cash Earning checkboxes.
3. Select Update Taxable Wages for SUI and SDIS taxes.
4. Save.

2. Create an Employee Auto Pay Detail record for each employee receiving this type of earning.

1. Select the MEALS1earning code.  
2. In the Compensation Amtfield, enter 21.60.
3. Select the regular Check Code.
4. Select all Process Payroll of the month checkboxes.
5. Complete the remainder of the screen accordingly.
6. Save.

3. 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.

1. Define an Earning Code for MEALS2.

1. Enter 00 in the Earning Amount field. Enter 00 in the Earning Percentage field.
2. Select the Print on Check and Non Cash Earning checkboxes.
3. Select Update Taxable Wages for SUI and SDIS taxes.
4. Select the Accumulator SPTOTHOURS. Verify that the Payroll Accumulator SPTOTHOURS is Active.
5. Save.

2. Create an Employee Auto Pay Detail record for each employee receiving this type of earning.

1. Select the MEALS2earning code.  
2. Enter the Hourly Rate for the earning, which is $0.45 per hour.  
3. Select the Regular Check Code from the drop down list. Select all Process Payroll (Periods). Complete the remainder of the screen accordingly.
4. Save.

3. 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.