Earning Types Overview
Introduction
The article is an overview of the various Earning Type (EarnType) codes available in ReadyPay Desktop (RPD) and ReadyPay Online (RPO).
Earn Types provide a variety of functionality in the software. Some are used solely to identify earnings used by specific types for reporting purposes. Technically, all Earn Types can be used for reporting purposes. Many, however, have additional functionality. Some control the taxation of the associated earnings code, and in some cases, where that earnings is displayed on Form W2.
Application in RPD/RPO
Reporting
A number of Earn Types were specifically created to facilitate reporting. In the past, Code Groups were mainly used when multiple earnings codes were needed to be considered by a report. When adding a new earnings code to a company, any Code Groups in use would need to be updated manually. Use of earn types allows for automatic inclusion of all earning codes with a particular earn type. If a new earnings code is added using the particular earn type, the earnings code is automatically included without modifying the report. This includes RPD/RPO standard and Custom Crystal reports.
Earn Types have limited application in Report Writer. The RW Report Type "Company Earnings" allows the display of earnings codes and the associated earn type (if any).
Scripting
Earn Types can also be used with VB Scripting Functions. This includes Company Calc Codes, Company Scripting, and System Level Calc Codes and Scripting.
The VB Commands to access data by Earn Types are:
GetEarnTypeAmountGetEarnTypeHours
Syntax is GetEarnTypeAmount("EarnType") or GetEarnTypeHours("EarnType").
Replace EarnType with the Earn Type you need (Reg, OT, GTL).
Explanation of Earn Type Codes
Following is a list of the Earn Types in RPD/RPO and a description of their use. Earn Types (and Ded Types) are created and maintained by Taslar. They are housed in a system level database table called SCodeTypes. You cannot modify the system codes or create your own Earn or Ded Types.
See also: Deduction Types Overview.
Additional Information
In the following grid, a number of Earn Types read "Used for reporting" under the Function column. Technically, all Earn Types can be used for reporting purposes. If "used for reporting" is not noted, the Earn Type typically works with other functionality in the software or the Earnings Code may require additional settings.
If the Function column indicates a W2 Field is being set, that value is locked in by the system and cannot be changed.
When adding a new earnings code, if you inadvertently select an incorrect Earn Type that sets a W2 field, you simply change the Earn Type. This will remove the W2 Field setting if none applies. If you change the Earn Type to one that sets the W2 Field, the W2 Field will be reset to the correct value for the newly chosen Earn Type. Additionally, if the new Earn Type indicates it affects Taxability, those Taxable settings will be applied (added or removed as needed by the new Earn Type) as well.
You cannot change the Earn Type on an Earnings Code if the "In History" field on the Earnings Code is set to Yes. The "In History" field is found in Company Setup > Earnings > Other Options Sub Tab.
In the Function column, there are notations of "Blocks taxability on all tax codes" and "Automatically sets taxability" on certain earn types. "Blocks taxability on all tax codes" is found on earnings that are completely non-taxable. "Automatically sets taxability" is used when the taxability of that item varies by state or federal agency. In those cases, logic in the tax engine sets the taxability based on the rules of those agencies.
Earn Types beginning with "Memo" make the associated Earnings Code Memo entries. Memo entries are not considered for taxable earnings. Memo entries are typically used to record information for reporting purposes. They are generally excluded from totals on most reports. The most common exception is Retirement Plan (401(k), 403b, etc.) type reports where the Memo Match information can be included for reporting purposes.
A number of the Earn Types listed below have an asterisk (*) following the description. This is to indicate that there is additional setup required to any earnings code associated with that earn type to make it do what the Earn Type indicates. For example, using the Earn Type of Overtime itself does not cause the calculation of Overtime. To make the earnings code calculate Time and a Half overtime, the Rate X field on the earning code must be set to 1.5. For Double Time, enter 2.0, etc. Without the overrides, these codes are, in most cases, simply informational. Using an Earn Type of GTL will not cause GTL to calculate. There is additional Company level and employee level setup needed for the GTL calculations to function properly.
| Earn Type Code | Description | Function |
|---|---|---|
| 1099-NT | 1099 — Non Taxable | Blocks Taxability on all tax codes. No W2 Field set. |
| 3PSP-LT | Third Party Sick Pay — Long Term | DO NOT MANUALLY ADD EARNINGS CODES WITH THIS EARN TYPE. The 3rd Party Sick Pay Wizard adds them automatically. Automatically sets taxability. No W2 Field set. |
| 3rd Pty Sick | Third Party Sick Pay — Taxable | DO NOT MANUALLY ADD EARNINGS CODES WITH THIS EARN TYPE. The 3rd Party Sick Pay Wizard adds them automatically. Automatically sets taxability. Sets W2 Field to 14B (3PSP). |
| Allowance | Allowance | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Annuity | Annuity — Taxable | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Annuity-NT | Annuity Non-Taxable | Blocks Taxability on all tax codes. No W2 Field. |
| Banquet Tips | Banquet Tips | Sets no tax overrides. Sets W2 Field to 7 (SS Tips). |
| Banquet | Banquet Earnings | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Bereavement | Bereavement | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Bonus | Bonus | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Cash Tips | Cash Tips * | Sets W2 Field to 7 (SS Tips). |
| Cash | Cash Payment | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Charged Tips | Charged Tips (Credit card Tips) * | Sets W2 Field to 7 (SS Tips). |
| Commission | Commission | Used for reporting. Sets no tax overrides. No W2 Field set. |
| COVID ARPA Fam T | COVID ARPA Family and Medical Leave Taxable | Sets no tax overrides. No W2 Field set. |
| COVID ARPA Fam | COVID ARPA Family and Medical Leave | Adds ARPA Tax Credits. Blocks Taxability on CERC-CR Tax Code. Sets W2 Field to 14 (Any available Box 14 line). |
| COVID ARPA Other T | COVID ARPA Paid Sick Leave Other Taxable | Sets no tax overrides. No W2 Field set. |
| COVID ARPA Other | COVID ARPA Paid Sick Leave Other | Adds ARPA Tax Credits. Blocks Taxability on CERC-CR Tax Code. Sets W2 Field to 14 (Any available Box 14 line). |
| COVID ARPA Sick T | COVID ARPA Paid Sick Leave Self Taxable | Sets no tax overrides. No W2 Field set. |
| COVID ARPA Sick | COVID ARPA Paid Sick Leave Self | Adds ARPA Tax Credits. Blocks Taxability on CERC-CR Tax Code. Sets W2 Field to 14 (Any available Box 14 line). |
| COVID Cobra | COVID Related Cobra Expenses | Blocks taxability on all tax codes. No W2 Field set. |
| COVID ERC Ins | COVID Employer Retention Credit Insurance Related | Blocks taxability on all tax codes. No W2 Field set. |
| Death Benefit | Death Benefit | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Dep Care | Dependent Care Benefits | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Draw-NT | Draw — Non-Taxable | Blocks taxability on all tax codes except those specific to COVID. No W2 Field set. |
| DuesReimb-NT | Dues — Non-Taxable | Blocks taxability on all tax codes except those specific to COVID. No W2 Field set. |
| ExpenseReimb-NT | Expense Reimbursement — Non-Taxable | Blocks taxability on all tax codes except those specific to COVID. No W2 Field set. |
| FMLA | FMLA | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Fringe | Fringe | Used for reporting. Sets no tax overrides. No W2 Field set. |
| GTL | Group Term Life * (see Group Term Life Setup) | Sets Taxability as per Tax Database. Sets W2 Field to 12C (Taxable Cost of GTL). Requires setup of a matching deduction. |
| Holiday | Holiday | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Housing | Housing | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Housing-NT | Housing — Non Taxable | Blocks taxability on all tax codes. No W2 Field set. |
| HSA | Health Savings Account (see HSA Account Setup Guide) | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Jury Duty | Jury Duty | Used for reporting. Sets no tax overrides. No W2 Field set. |
| MealAllow-NT | Meal Allowance — Non Taxable | Blocks taxability on all tax codes. No W2 Field set. |
| Memo 3PSP-NT | Third Party Sick Pay — Non Taxable | DO NOT MANUALLY ADD EARNINGS CODES WITH THIS EARN TYPE. The 3rd Party Sick Pay Wizard adds them automatically. Sets no tax overrides. Sets W2 Field to 12J (NonTaxable Sick Pay). |
| Memo 457b ERMatch | 457b Employer Match * | Used for reporting. Sets no tax overrides. No W2 Field set. |
| Memo COVID ARPA Fam Ins | COVID ARPA Related Family Health Insurance Costs | Sets no tax overrides. No W2 Field set. |
| Memo COVID ARPA Sick Ins | COVID ARPA Related Sick Health Insurance Costs | Sets no tax overrides. No W2 Field set. |
| Memo Hours | Memo — Hours only — amount forced to zero | Used to track Memo Hours for a number of reasons. Sets no tax overrides. No W2 Field set. |
| Memo Pr Wgs | Prior Employer Wages | Used to record wages in a Successor Corp scenario. Sets no tax overrides. No W2 Field set. |
| Memo | Memo — Does Not Add to Gross | Use for Memo items where a specific Memo Earn Type does not exist. Sets no tax overrides. No W2 Field set. |
| Memo401a | 401a | Tracks contributions for 401a Retirement Type plans. Sets no tax overrides. Sets W2 field to 14 (Any available Box 14 line). |
| MemoACA | Memo Unpaid Hours for ACA | Sets no tax overrides. No W2 Field set. |
| MemoERHealth | Employer Paid Health Memo Code | Sets no tax overrides. Sets W2 field to 12DD (Employer Cost Health Insurance). |
| MemoERMatch | 401(k) Employer Match Memo Code * | Tracks Employer Contributions to Retirement Plans. Sets no tax overrides. No W2 Field set. |
| MemoFMLA | MemoFMLA | Sets no tax overrides. No W2 Field set. |
| MemoGrsRecpt | Gross receipts (use for Tip Allocation) * | For clients with the TipAlloc Service setup. Sets no tax overrides. No W2 Field set. |
| MemoNonElectiveSafeHarbor | Non-Elective Safe Harbor | Tracks contributions to Non-Elective Safe Harbor plans. Sets no tax overrides. No W2 Field set. |
| MemoPrevailingFund | Prevailing Wage Fund Fringe * | Sets no tax overrides. No W2 Field set. |
| MemoProfitSharing | Employer Profit Sharing Contribution Memo * | Sets no tax overrides. No W2 Field set. |
| MemoQSEHRA | Qualified Small Employer HRA | Sets no tax overrides. No W2 Field set. |
| MemoSafeHarbor | Safe Harbor Employer Match Memo Code * | Sets no tax overrides. No W2 Field set. |
| MemoTipAlloc | Tip Allocation Amount * | Sets no tax overrides. Sets W2 field to 8 (Allocated Tips). |
| MemoWC | Special Workers Comp Memo Code (see Washington L&I Instructions) | Used with Washington L&I. Sets no tax overrides. No W2 Field set. |
| Mileage-NT | Mileage — Non Taxable | Blocks taxability on all tax codes. No W2 Field set. |
| Military | Military | Sets no tax overrides. No W2 Field set. |
| Non Taxable | Non Taxable earnings (Exempt from All Taxes) | Blocks taxability on all tax codes. No W2 Field set. |
| OT | Overtime Pay * | Needs entries in the Rate + or Rate X fields to calculate overtime. Sets no tax overrides. No W2 Field set. |
| OT-Weighted | Weighted Average Overtime * | Used with Weighted OT scripts. Sets no tax overrides. No W2 Field set. |
| PerDiem | Per Diem | Sets no tax overrides. No W2 Field set. |
| Prevailing | Prevailing Wage * | Used with Prevailing Wage service. Sets no tax overrides. No W2 Field set. |
| PrevailingFringe | Prevailing Wage Fringe Benefit * | Used with Prevailing Wage service. Sets no tax overrides. No W2 Field set. |
| PrevailingOT | Prevailing Wage Overtime * | Used with Prevailing Wage service. Sets no tax overrides. No W2 Field set. |
| ProfitSharing | Employer Profit Sharing Contribution Taxable | Sets no tax overrides. No W2 Field set. |
| PTO | Vacation/PTO | Sets no tax overrides. No W2 Field set. |
| Reg | Regular Pay | Sets no tax overrides. No W2 Field set. |
| Retro | Retro Pay Earning Type | Sets no tax overrides. No W2 Field set. |
| Severance | Severance Pay | Sets no tax overrides. No W2 Field set. |
| ShareHolderIns | Partners and 2% Shareholders Health Insurance | Automatically sets taxability. No W2 Field set. |
| Shift | Shift Differential | Sets no tax overrides. No W2 Field set. |
| Sick | Sick | Sets no tax overrides. No W2 Field set. |
| Stock | Stock Purchase | Sets no tax overrides. No W2 Field set. |
| Training | Training | Sets no tax overrides. No W2 Field set. |
| Travel | Travel Time | Sets no tax overrides. No W2 Field set. |
| UniformReimb-NT | Uniform Reimbursement — Non Taxable | Blocks taxability on all tax codes. No W2 Field set. |
| Voting | Voting | Sets no tax overrides. No W2 Field set. |
| YearEndGTL | Group Term Life Insurance Year End Adj | Use when GTL is manually calculated or when loading YTD GTL values during conversion. Automatically sets taxability. Sets W2 Field to 12C (Taxable Cost of GTL). |