(CA) Add income and deduction types

Create additional earning types

Income types – additional earnings to account for any earnings outside of regular pay. Learn more

Note: regular pay, as an earning type, is automatically calculated for salaried and hourly employees or contractors using their rate of pay.  But, if your company has other types of earnings like commission, car allowance, etc., those additional earnings are set up in the Income types tab.

1. Navigate to the Company > Income types tab.

2. Regular pay, vacation pay, overtime, bonus and holiday pay are added by default and cannot be deleted.

3. Click “Add an income.”

4. Income type – select the applicable income type from the list of predefined earning types. Note: each earning type in the list can only be used once. To create more than one version of the same earning, request a custom income code setup to avoid overriding existing codes. 

5. Tax settings for all income types are preset and cannot be edited by the user. 

6. Income name – enter a description to identify the earning type. 

7. GL expense account – the GL expense number will be displayed in the Posting journal payroll report. This is an optional field and is not necessary if you will be mapping earnings through the Chart of Accounts via Wagepoint’s integration with accounting platforms like QuickBooks Online or Xero. 

8. Save changes to add income types. 

9. Navigate to Employees > Employee name > Income to set up additional earnings to be paid out per pay cheque or once on the next cheque (click here for instructions). You can also input these additional earnings when you process payroll. 

Can’t find an earning type in the list or want to create more than one version of the same earning type? 

1. Click “Request custom income type.” 

2. Provide details on the type of earning, applicable taxes, reporting requirements for year-end and click “Submit.” 

3. Our technical support team will create the custom earning code within 1 - 3 business days and notify you via email when the code has been created. 

Create Salary Components

Some companies — such as daycares — require salary components where they have a wage enhancement e.g. for every regular hour an employee works, they get an additional $2/hr. 

1. Send a request to [e-mail] and identify the type of salary component:

• GOG - General Operating Grant
• WEG - Wage Enhancement

Note: It is possible to set up more than one component.

2. Our technical support team will create the custom earning code within 1 - 3 business days and notify you via email when the code has been created. 

3. Once the code is created, navigate to your employee’s Job tab to assign a salary component to them and choose which income it should be applied to. Note: It can be applied to any type of income that is expressed in Hours (Regular, OVT, Vacation, Sick).

4. Run your payroll as normal and the salary component will automatically be added.

Create deductions and company contributions

Deduction types – deduct employee contributions toward dental / health insurance, life insurance, etc. Learn more

Note: federal and provincial payroll withholdings, including CPP/QPP and EI should be configured in the employee's Tax tab.

1. Navigate to the Company > Deduction types tab.

2. Click “Add a deduction.”

3. Deduction type – select the applicable deduction type from the list of predefined deductions. Note: each deduction type in the list can only be used once. To create more than one version of the same deduction, request a custom deduction code setup to avoid overriding existing codes. 

4. Tax settings for employee contributions toward any deduction types are preset and cannot be edited by the user. Note: tax settings for deductions that accept employer contributions (such as taxable benefits) are also preset in the app. For instance, employer contributions toward Medical/Health deductions are not taxed or included in CPP/EI calculations for all provinces, except Quebec. 

5. Deduction name – enter a description to identify the deduction type. 

6. GL expense account and GL liability account – these are optional fields and not necessary if you will be mapping deductions through the Chart of Accounts via Wagepoint’s integration with accounting platforms like QuickBooks Online or Xero. 

7. Save changes to add deduction types. 

8. Navigate to an employee’s Deductions tab to set up applicable deductions. 

Note: Employer portions of the benefits (taxable benefit) are held on the deduction side of things.  When you add the employee deduction, the matching employer benefit is also added.  Both are held on the deduction side of things for ease of use.  The preset benefits are set up as per CRA standards.

Note: The company would be responsible to send in all amounts for the benefits to the Third Party as Wagepoint does not remit them.

Can’t find a deduction type in the list or want to create more than one version of the same deduction type?

1. Click “Request custom deduction type.” 

2. Provide details on the type of deduction, tax treatment, reporting requirements for year-end, if any, and click “Submit.” 

3. Our technical support team will create the custom deduction code within 1 - 3 business days and notify you via email when the code has been created.