Standard Pay Codes
Standard pay codes are available for earnings, deductions, and employer contributions. These same pay codes are listed in the Pay Code field on payroll item records. The pay code that you select in the Type field affects the way that the payroll item appears on the employee's Form W-2.
Earning codes identify a range of compensation and other payments received by employees, both taxable and non-taxable. Earning codes are available for regular pay, bonuses, and overtime as well as expense reimbursements and non-taxable sick pay. Learn more about the standard pay codes for earnings:
Deduction codes identify a range of deductions from employees' compensation that an employer may have to factor into a paycheck or direct deposit. Most employee deductions are voluntary, but some are not (for example, after-tax deductions such as Child Support and Garnishments). Deduction codes also include employer contributions paid to third parties for benefits such as medical insurance and pension contributions. Learn more about the standard pay codes for deductions:
Employer contribution codes are used to record employer contributions. They do not appear on paychecks or affect taxation or net pay in any way. The employer contributions are recorded to create checks on the Pay Payroll Liabilities page. For more information, see Employer Contribution Pay Codes.
Related Topics
- Payroll Item Types
- Creating Payroll Items
- Creating Payroll Item Groups
- Setting a Limit for a Payroll Item
- Payroll Item Derivation
- Applying a Default Rate to a Payroll Item
- Inactivating or Deleting Payroll Items
- Editing a Payroll Item
- Scheduling Payroll Item Changes
- Mapping Pay Codes to Payroll Items
- Payroll Items Setup