Understanding Earnings and Payments
After you have entered standardized information about your salary administration system into the setup tables, you can collect information about payments to employees (such as regular salary and related additional earnings) that is needed to process payroll. You also enter payroll-related information about employee bank account information.
Earnings are payments made to employees, and total earnings comprise regular salary and additional earnings. Earnings or payments are considered permanent or incidental. For example, regular salary is a permanent payment, traveling allowance for commuting is a permanent additional payment, and a one-time performance bonus is an incidental additional payment.
In addition to regular salary, you might need to enter additional earnings information for employees or employee groups. The page you use to enter earnings depends on the nature of the earning.
Some important terms to understand are:
Term |
Definition |
|---|---|
Permanent earnings |
Earnings that cover a time period with an initial and final date, but the final date is open, and the payment continues indefinitely until the final date is closed. Examples of such earnings include a fixed commuting allowance, a telephone allowance, or a labor market salary adjustment. |
Incidental payments |
Cover a one-time payment inside a closed time period. An example of an incidental earning is a performance bonus. |
Incidental hours |
Pay for hours other than regular amounts. An example of incidental hours is overtime. |