Set up earnings

In general, you create different hours and earnings codes for the following reasons:

  • the dollar value may report to different boxes on the T4/RL-1 or T4A/RL-2, or
  • tax, CPP, or EI calculations are different for the earning

Earning codes can be set up as permanent codes that automatically pay your employees each pay period, like salary. They can also be set up as one-time codes for use as needed. For example, bonus pay.

Permanent earnings, other than salary, display on the Permanent Rates, Factors, Earnings page.Closed From the Payroll menu, select Regular Payment > Permanent Rates, Factors, Earnings.

One-time hours and earning codes set up for your payroll display on the Employee Timesheet page.Closed From the Payroll menu, select Regular Payment > Employee Timesheet. Click the Description field for the available codes.

Complete the Earning Code Request form. Service fees apply.

Tasks

  1. Gather all information about the new earning code, including the following information:

    • How to pay the earning. Options are:

      • dollar amount

      • hours based on a permanent hourly rate

      • hours based on a factor.  For example: 1.5 (time and a half) or 2.0 (double time)

      • units based on a permanent daily rate

    • The name for the new earning code

    • How to tax the earning:

      • regular

      • lump sum

      • bonus

      • exclude

    • Is the earning to be included in other calculations

      • provincial health tax

      • WCB

      • vacation

      • other accumulators

      • other deductions. For example: pension plans, RRSPs, etc.

    • Is the earning code insurable for EI purposes for earnings, hours, or both

    • Tax form reporting requirements

    You can obtain more information on hours and earnings types from your accountant or from the Canada Revenue Agency (CRA).

  2. Complete the Earning Code Request form. Service fees apply. Your Customer Support Team will notify you by email when the request is completed.
  3. Verify the availability of the new earning on the Employee Timesheet page.Closed From the Payroll menu, select Regular Payment > Employee Timesheet. You may have to click the browser Refresh button to see the new earning in the list.
  4. (Optional) Adjust the default settings for your Rapid Entry pages in Powerpay to add this new earning code if it will be used frequently.

Complete the Earning Code Request form. Service fees apply. Your Customer Support Team will notify you by email when the request is completed.