Set up additional earnings, deductions and benefits

In this article, we go through the steps of adding additional incomes, as well as deductions and benefits to your employees' pay. 

If you have not created the codes you want to use yet, please review the article Add income and deduction types first.

 

Add additional earnings

1. Navigate to Employees > Employee Name > Income. 

2. Click “Add income.”

3. Income type – dropdown menu will display all available earning types for the company. 

4. Amount – enter the additional earning amount in dollars. 

5. Frequency – additional earnings can be paid out on each paycheque or once on the next paycheque. 

6. Note: one-off earnings like bonus, commission, expense reimbursements can be added directly to the payroll timesheet for both hourly and salaried employees when you process payroll.

7. Charge dept – select a department to allocate the earning type amounts for reporting.

8. Hours associated – enter the amount of hours associated with the income, if applicable. For e.g. for salaried employees accrued vacation pay will have hours associated and $ amount if for time taken (they went on vacation). But if this is for a vacation payout (the employee did not go on vacation, you are just paying out the amount) then you would NOT enter hours

9. Save changes to add the additional earning to the employee's paycheque.

Setup employee deductions and benefits

1. Navigate to an employee’s Deductions tab.

2. Click “Add deduction.”

3. Deduction type – dropdown menu will display all available deductions & benefits for the company. 

4. EmployEE pays – enter the amount that will be deducted from the employee's pay. Note: certain deductions and benefits can accept both $ and % amounts.  However, all incomes are pulled into the calculations when % is chosen, there is no way to pick and choose.  If a particular income is to not be included in the calculation you must calculate manually and add it as a dollar amount instead.

5. Frequency - deductions can be withheld on each paycheque or once on the next paycheque but if there is a custom frequency setting at the company level (1st pay, 2nd pay, etc), then at the employee level the selection needs to be EVERY PAY.

6. EmployER pays – enter the amount that the employer will contribute toward the deduction or benefit. Note: certain deductions and benefits can accept both $ and % amounts. 

7. Save changes to complete the setup of the deduction or benefit.