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.