Define Earning/Deduction Codes

OBJECTIVE

Define Earning/Deduction Codes option is used to define the various parameters used to calculate bonuses and deductions to be paid to or deducted from employees.

PREREQUISITE

Chart of Accounts

STEPS

maestro* > Time Management > Maintenance > Time Management > Define Earning/Deduction Codes

maestro* > Time Management > Maintenance > Payroll > Define Earning/Deduction Codes

Create an bonus or a deduction

Enter the required information:

The Configuration icon is used to define entry options for the Code field.

Field

Description

Code

Code of the bonus or deduction.

Unit

Unit of the bonus.

NOTE: For example, km for kilometres.

Description

Description of the bonus. This description is displayed in all searches and reports and is printed on the pay slip.

Type

Type of bonus that affects the behavior of the bonus for the various calculations. Available values:

% Deduction on Net

Bonus to be calculated based on the net amount after all deductions and deduction type bonuses.

Annual Bonus

Amount paid to the employee in the form of an annual bonus.

NOTE: Income tax is calculated using a predefined percentage from Employee Management. In Québec, this amount is included on the T4 and RL- 1.

WARNING: If no percentage is entered in the Default income tax on annual bonuses fields (federal and provincial) in Payroll - Employee Management (Income Tax tab), no income tax will be calculated for the Annual Bonus premium type.

Amount paid to the employee in the form of a bonus.

NOTES: Income tax, which is calculated on the total weekly salary, include bonuses. In Québec, this amount is included on the T4 and RL- 1.

It is possible to create a Bonus type premium if Canadian payroll is not installed.

Commission

Amount of commission paid to the employee.

NOTES: In Québec, this amount is included on the T4 and RL- 1.

It is possible to create a Commission type premium if Canadian payroll is not installed.

Deduction

Amount deducted from the employee’s net pay.

NOTE: For example, a deduction for a social club, wage garnishment, etc.

Expense Reimbursement

Non-taxable amount of reimbursed expenses paid to an employee that does not affect the net salary.

NOTES: The Expense Reimbursement bonus type entered by default in the employee record prevents the payroll reconciliation. This bonus type must be entered in the Enter Hours option (from the Project Time sub-menu).

The expense bonus is processed based on the cheque date rather than on the pay period.

Garnishee

Bonus used to calculate the garnishee amount with a maximum weekly amount.

Bonus used to pay a vacation allocation.

NOTES: This bonus is only for users who use the 2 - Holdback Vacation Pay Method in the Payroll option Define Work Categories.

Non Taxable Vacation

On payment of the vacation using this bonus, the bonus will not be taxable.

This bonus only applies to users who use the Payroll Reconciliation option.

Premium

Amount paid to the employee. The quantity (in this case, hours) is not added to the hours worked by the employee.

Revenue

Amount paid to the employee: The quantity (in this case, hours) is added to the hours worked by the employee.

NOTE: This bonus is related to the number of hours on the record of employment.

Tax. Ben. - Health (Fed)

Federal taxable benefit for health that affects box 40 on the Québec T4 slip.

Tax. Ben. - Health (Prov)

Provincial taxable benefit for health for the Canadian payroll or the state taxable benefit for the U.S. payroll.

NOTE: In Québec, this taxable benefit is shown in box J on the RL- 1.

Tax. Ben. - Others (Fed)

Other type of Federal taxable benefit that affects box 40 on the Québec T4 slip.

Tax. Ben. - Others (Prov)

Provincial taxable benefit for the Canadian payroll or the state taxable benefit for the U.S. payroll.

NOTE: In Québec, this taxable benefit is shown in box L on the RL- 1.

Taxable Vacation

Bonus used to pay a vacation allocation.

NOTES: This bonus is only for users who use the 0 - Normal Vacation Pay Method in the Payroll option Define Work Categories.

On payment of the vacation using this bonus, the bonus will be taxable.

This bonus only applies to users who use the Payroll Reconciliation option.

Available in transaction entries

Box checked by default that makes the bonus or deduction available (or not available) in the various transaction entry options such as Enter Hours, Enter Work Orders, Return From a Service Call, etc.

Available in Mobile

Makes the bonus or deduction available in maestro*MOBILE.

Enter the required information in the Main Fields tab :

Field

Description

Account

General ledger account to which the bonus is posted. If the field is empty, maestro* uses the salary account for the category.

NOTE: This field must only be completed if fringe benefits are managed.

Annex

Identifies the annex from Define Annex to which the bonus applies.

NOTE: The annex is included on CCQ Employer’s Monthly Report, which is only available with Canadian payroll.

Status

Identifies the status from Define CCQ Status to which the bonus applies.

NOTE: The status is shown on CCQ Employer’s Monthly Report, which is only available with the Canadian payroll.

Tax Code

Federal and provincial tax codes allocated to the bonus. Taxes are only calculated if the bonus is an Expense Reimbursement or Premium. These tax codes are used to calculate payroll and are posted to the payroll transfer.

NOTES: Either a tax code or a project tax code must be defined to calculate the taxes on a premium, but not both. A default tax code must be entered if Define Tax Code Usage option is used to determine the source of taxes applicable to premiums.

Only included tax codes are permitted if fringe benefits are used.

To determine the source of the code and applicable tax rates in hour entry options, refer to the online help on Reading Tax Codes in maestro*.

Default Activity

Default project activity for the bonus.

Project Tax Code

Federal and provincial tax codes allocated to the bonus for projects. Taxes are only calculated if the bonus is an Expense Reimbursement or Premium. These tax codes are used in hour entries and posted during payroll reconciliation.

NOTES: Either a tax code or a project tax code must be defined to calculate the taxes on a premium, but not both. A default tax code must be entered if Define Tax Code Usage option is used to determine the source of taxes applicable to premiums.

Only included tax codes are permitted if fringe benefits are used.

To determine the source of the code and applicable tax rates in hour entry options, refer to the online help on Reading Tax Codes in maestro*.

Default Group

Default project group for the bonus.

Project Cost Type

Available values:

Bonus

Bonus separate from salary in the Project Inquiry option.

Salary

Bonus included in the salary in the Project Inquiry option.

Quotation Cost Rate

Allows to indicate the premium's accrued rate to use for service quotations. Otherwise, we can instead choose to use the trade code's accrued rate by checking the appropriate box.

Bonus Calculation section:

Field

Description

Amount calculated using the following formula:

These three fields are part of the equation used to calculate the bonus.

In the first field, enter the rate applicable to the hourly rate.

NOTE: For example, 1 = 100% of the hourly rate, and 0.5 = 50% of the hourly rate.

In the second field, enter the factor, the constant.

NOTES: For example, $1.25 per kilometer, $0.75 per hour, $60, 0.3% of the salary, etc.

In the third field, enter the credit amount.

Maximum Amount section:

Field

Description

Type

Four choices are available:

Annual

Monthly

Not applicable; Indicates there is no maximum. No value can be entered in the Maximum Bonus field.

Per pay

Maximum Bonus

Maximum amount to be deducted from or added to the pay, depending on the type of bonus or deduction selected.

NOTE : If the Type is either Annual or Monthly, the date will be calculated at the time of payroll calculation.

Start Date

Start date on which the bonus is applied. This date is only used for the maximums.

NOTE: For example, the start date can be used for wage garnishment as of a certain date. The garnishment is calculated until the maximum is reached. On the pay stub, it is calculated as of the start date indicated in the bonus.

Record of employment section:

Field

Description

Box

Select record of employment box to which the paid amounts must appear for this bonus.

The possible choices are: 17A. Vacation Pay, 17B. Statutory Holidays, 17C. Other Monies, 19. Special Payments.

Code

Select the code that applies to the box on the record of employment, to establish the link between the premium and the box.

Field	Description
Amount calculated using the following formula:	These three fields are part of the equation used to calculate the bonus. In the first field, enter the rate applicable to the hourly rate. NOTE: For example, 1 = 100% of the hourly rate, and 0.5 = 50% of the hourly rate. In the second field, enter the factor, the constant. NOTES: For example, $1.25 per kilometer, $0.75 per hour, $60, 0.3% of the salary, etc. In the third field, enter the credit amount.

Field	Description
Type	Four choices are available: Annual Monthly Not applicable; Indicates there is no maximum. No value can be entered in the Maximum Bonus field. Per pay
Maximum Bonus	Maximum amount to be deducted from or added to the pay, depending on the type of bonus or deduction selected. NOTE : If the Type is either Annual or Monthly, the date will be calculated at the time of payroll calculation.
Start Date	Start date on which the bonus is applied. This date is only used for the maximums. NOTE: For example, the start date can be used for wage garnishment as of a certain date. The garnishment is calculated until the maximum is reached. On the pay stub, it is calculated as of the start date indicated in the bonus.

Field	Description
Box	Select record of employment box to which the paid amounts must appear for this bonus. The possible choices are: 17A. Vacation Pay, 17B. Statutory Holidays, 17C. Other Monies, 19. Special Payments.
Code	Select the code that applies to the box on the record of employment, to establish the link between the premium and the box.

Enter the required information in the Payroll Calculation tab:

Tab available with Canadian payroll only.

Tab available if the CGI Payroll Interface option is installed, even if the Canadian payroll is not installed.

Field

Description

Affects Federal Tax

Calculates the federal income tax on the bonus, if the box is checked.

Affects Provincial Tax

Calculates the provincial income tax on the bonus, if the box is checked.

Affects Pension Plan

Calculates the pension plan on the bonus, if the box is checked.

Affects W/C – CSST Ded.

Calculates the W/C - CSST on the bonus, if the box is checked.

Affects CPP/QPP

Calculates the CPP/QPP on the bonus, if the box is checked.

Affects QPIP

Calculates the QPIP on the bonus, if the box is checked.

Affects the PBB

Calculates the PBB on the bonus, if the box is checked.

Affects Employm. Insurance

Available values:

for Hours

Indicates that the number of hours for the bonus must be added to the insurable hours of the employment insurance, if the box is checked.

for Earnings

Calculates the employment insurance on the bonus, if the box is checked.

Affects Committee Calculations

Available values:

for Hours

Specifies that the number of hours for the bonus must be added to the hours that affect the Define Committees option (example: Sector-based contribution to the CCQ), if the box is checked. It can also affect the union calculation (available through Union Management), if the Source of hours is set to1 - Committee.

for Earnings

Calculates committee deductions on the bonus, if the box is checked. It can also affect the union calculation (available through Union Management), if the income Source is set to 1 - Committee.

NOTE: If checked, affects the vacation calculation.

Affects Social benefits for Hours

Calculates the CCQ fringe benefits on the bonus, if the box is checked. CCQ fringe benefits are only calculated on hours worked.

Affects Union Calculations

Available values:

for Hours

Calculates the union dues based on the number of hours worked if the box is checked. It can also affect the union calculation (available through Union Management), if the Source of hours is set to 2 - Union.

for Earnings

Calculates the union dues on the bonus, if the box is checked. It can also affect:

the CNT calculation, if the bonus is added with sector 0. For more information, please read the How To Calculating the Commission des normes du travail's (CNT) Contributions;

the union calculation (available through Union Management), if the income Source is set to 2 - Union.

Enter the required information in the US Payroll Calculation tab:

Tab available with U.S. payroll only.

Affects Calculations - Federal section:

Field

Description

Federal Tax

Tells maestro* whether the federal tax must be calculated. Available values:

No

The bonus or deduction does not affect the calculation of federal income tax.

Regular Tax Rate

The bonus or deduction affects the calculation of federal income tax based on the Income Tax Table defined in Define Withholding Tax (U.S.), Federal tab.

Supplemental Rate

The bonus or deduction affects the calculation of federal income tax rate based on the Supplemental Rate field defined in Define Withholding Tax (U.S.), Special Tax Rate section.

Supplemental Rate 2

The bonus or deduction affects the calculation of federal income tax based on the Supplemental Rate 2 field defined in Define Withholding Tax (U.S.), Special Tax Rate section.

Social Security (FICA)

Calculates the FICA (Federal Insurance Contributions Act) contribution, if the box is checked.

Medicare (FICA)

Calculates the Medicare insurance plan contribution (FICA), if the box is checked.

FUTA

Calculates the FUTA (Federal Unemployment Tax Act) contribution, if the box is checked.

Affects Calculations - State section:

Field

Description

State Income Tax

Tells maestro* whether the state tax must be calculated. Available values:

No

The bonus or deduction does not affect the calculation of state income tax.

Regular Tax Rate

The bonus or deduction affects the calculation of state income tax based on the state Income Tax Table defined in Define Withholding Tax (U.S.).

Supplemental Rate

The bonus or deduction affects the calculation of state income tax based on the Supplemental Rate field defined in Define Withholding Tax (U.S.), Special Tax Rate section.

Supplemental Rate 2

The bonus or deduction affects the calculation of state income tax based on the Supplemental Rate 2 field defined in Define Withholding Tax (U.S.), Special Tax Rate section.

SUTA

Calculates the SUTA (State Unemployment Tax Act) contribution, if the box is checked.

SDI

Calculates the SDI (State Disability Insurance) contribution, if the box is checked.

Local Income Tax

Tells maestro* whether to calculate the local income tax. Available values:

No

The bonus or deduction does not affect the calculation of local income tax.

Regular Tax Rate

The bonus or deduction affects the calculation of local income tax based on the Local Income Tax table defined in Define Withholding Tax (U.S.), General tab.

NOTE: The supplemental rates (1 and 2) apply only for the cities of New York and Yonkers.

Supplemental Rate

The bonus or deduction affects the calculation of local income tax rate based on the Supplemental Rate field defined in Define Withholding Tax (U.S.), General tab.

Supplemental Rate 2

The bonus or deduction affects the calculation of local income tax rate based on the Supplemental Rate 2 field defined in Define Withholding Tax (U.S.), General tab.

Other Withholdings (Hours)

If checked, the bonus affects the calculation of the state in hours.

NOTE: Used to calculate the WBF for the state of Oregon.

Affects Calculations - Other section:

Field

Description

Pension Plan

Calculates the pension plan, if the box is checked.

PBB

Calculates the PBB on the bonus, if the box is checked.

W/C Deduction

Available values:

for Earnings

Calculates a W/C deduction from the salary amount if the box is checked.

for Hours

Calculates a W/C deduction based on hours worked if the box is checked.

NOTES: The source of the calculation must be Worked Hours in Configuration - Time Management. It also applies to U.S. Payroll.

This calculated value is entered in the Number of W/C Hours variable available in miscellaneous reports. It is also accessible in cumulative amounts for employees.

W/C - CSST Activity

W/C - CSST Activity.

This field allows users to establish a link between a bonus and a W/C - CSST activity.

Used if the employee must pay a W/C CSST contribution (using a Deduction bonus) and if the portion paid by the employee and the portion paid by the employer must be linked.

NOTE: This field is only used to create a remittance file for the government of the state of Washington.

Committee

Available values:

for Earnings

Calculates committee or union deductions on the bonus, if the box is checked.

NOTE: If checked, affects the vacation calculation.

for Hours

Specifies that the number of hours for the bonus must be added to the hours that affect the Define Committees option, if the box is checked.

Union for Hours

Calculates the union due on the bonus, if the box is checked. Only to be used if the union is calculated based on the number of hours worked.

Enter the required information in the Export tab:

Field

Description

Export Code

Export code for hours for an external payroll calculation software.

Export Column

Export column for hours for an external payroll calculation software.

Export Hours

Exports the hours to other payroll systems that are linked to maestro* through an interface, if the box is checked.

Field	Description
Export Code	Export code for hours for an external payroll calculation software.
Export Column	Export column for hours for an external payroll calculation software.
Export Hours	Exports the hours to other payroll systems that are linked to maestro* through an interface, if the box is checked.

Enter the required information in the Garnishee tab:

To calculate a garnishee on the Net Income or the Basic Net, the rate must be indicated in the Garnishee tab, with a minimum > 0. If the premium is not configured correctly, it will not be possible to select it with a Net Income or Basic Net base in the Employee Management.

It is only possible to save Garnishee type premium values in this tab.

Field

Description

Wages greater or equal to

Used to enter a wage scale on which the garnishee calculation is based.

Rate

Used to enter the rate corresponding to each wage scale that is used for garnishee calculation.

Field	Description
Wages greater or equal to	Used to enter a wage scale on which the garnishee calculation is based.
Rate	Used to enter the rate corresponding to each wage scale that is used for garnishee calculation.

Click Save.
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APPENDIX

VARIABLES AVAILABLE TO DETERMINE THE CALCULATION FOR THE PENSION PLAN

The Define Earning/Deduction Codes function has a direct impact on formulas that calculate the pension plan. You must correctly configure the bonus in the Payroll Calculation tab. The table below explains how the bonuses must be configured to ensure that the variables use them.

Variable

Source of the calculation to determine the pension fund

Sectors

Define Earning/Deduction Codes

Payroll Calculation tab

Fed. Income Tax

Prov. Income Tax

Pension Fund

Committee Calculation

Union

SALFP

Paid hours (regular, half, double and vacation) + Taxable vacation pay + all types of bonuses for which the Pension Fund box is checked.

NOTE: The amount of Taxable vacation pay comes from the Hours Management in the Taxable VacPay field.

All

X

SBFED

Paid hours (regular, half, double and vacation) vacation pay + all types of bonuses for which the Federal Income Tax box is checked.

All

X

SBPRO

Paid hours (regular, half, double and vacation) + vacation pay + all types of bonuses for which the Provincial Income Tax box is checked.

All

X

SALCOMITE

Paid hours (regular, half, double) + paid vacation + all types of bonuses for which the Provincial Income Tax box is checked.

All

X

HRPAYE or HRPAID

Paid hours (regular, half, double) + all types of bonuses for which the Committee Calculation in Hours box is checked.

NOTES: Income bonuses are calculated based on regular time.

Paid vacation days are not included in this variable.

All

HRTRAV or HRWORKED

Hours worked + all types of bonuses for which the Committee Calculation in Hours box is checked.

All

VACCALCULE

Vacation amount calculated only.

All

SALREG

Hours paid at regular time + all types of bonuses at regular time.

All

SALOVER

Hours paid at time-and-a-half + all types of bonuses paid at time-and-a-half.

SALDOUBLE

Hours paid at double time + all types of bonuses paid at double time.

SALFP0

Paid hours (regular, half, double and vacation) + Taxable vacation pay + all types of bonuses for which the Pension Fund box is checked.

NOTE: The amount of Taxable vacation pay comes from the Hours Management in the Taxable VacPay field.

0

X

SALREG0

Hours paid at regular time + all types of bonuses at regular time for sector 0.

0

SALOVER0

Hours paid at time-and-a-half + all types of bonuses paid at time-and-a-half for sector 0.

0

SALDOUBLE0

Hours paid at double time + all types of bonuses paid at double time for sector 0.

0

SALREGRAT

Hours paid at regular time * regular hourly rate.

NOTE : Does not include premium and bonus, only worked hours.

All

SALREGRAT0

Hours paid at regular time * regular hourly rate for sector 0.

NOTE : Does not include premium and bonus, only worked hours.

0

HRPAYE0 or HRPAID0

Paid hours (regular, half, double) + all types of bonuses for which the Committee Calculation in Hours box is checked for sector 0.

NOTES: Income bonuses are calculated based on regular time.

Paid vacation days are not included in this variable.

0

HRTRAV0 or HRWORKED0

Paid hours (regular, half, double) + all types of bonuses for which the Committee Calculation in Hours box is checked for sector 0.

NOTES: Income bonuses are calculated based on regular time.

Paid vacation days are not included.

0

SALTOTEMP

Paid hours (regular, half, double) + all types of bonuses for sector 0 for which the Committee Calculation in Salary box is checked.

0

X

SALSYNDICAT

Paid hours (regular, half, double) + paid vacation + all types of bonuses for which the Affect the union calculations in salary box is checked.

Based on Config.

X

VACIMP

Amount of taxable vacation paid comes from Hours Management.

NOTE: This amount can be entered manually in Hours Management, Taxable VacPay field or automatically if you use a bonuses type Vacation.

Last modification: September 20, 2024

Variable	Source of the calculation to determine the pension fund	Sectors	Define Earning/Deduction Codes Payroll Calculation tab
Variable	Source of the calculation to determine the pension fund	Sectors	Fed. Income Tax	Prov. Income Tax	Pension Fund	Committee Calculation	Union
SALFP	Paid hours (regular, half, double and vacation) + Taxable vacation pay + all types of bonuses for which the Pension Fund box is checked. NOTE: The amount of Taxable vacation pay comes from the Hours Management in the Taxable VacPay field.	All			X
SBFED	Paid hours (regular, half, double and vacation) vacation pay + all types of bonuses for which the Federal Income Tax box is checked.	All	X
SBPRO	Paid hours (regular, half, double and vacation) + vacation pay + all types of bonuses for which the Provincial Income Tax box is checked.	All		X
SALCOMITE	Paid hours (regular, half, double) + paid vacation + all types of bonuses for which the Provincial Income Tax box is checked.	All				X
HRPAYE or HRPAID	Paid hours (regular, half, double) + all types of bonuses for which the Committee Calculation in Hours box is checked. NOTES: Income bonuses are calculated based on regular time. Paid vacation days are not included in this variable.	All
HRTRAV or HRWORKED	Hours worked + all types of bonuses for which the Committee Calculation in Hours box is checked.	All
VACCALCULE	Vacation amount calculated only.	All
SALREG	Hours paid at regular time + all types of bonuses at regular time.	All
SALOVER	Hours paid at time-and-a-half + all types of bonuses paid at time-and-a-half.
SALDOUBLE	Hours paid at double time + all types of bonuses paid at double time.
SALFP0	Paid hours (regular, half, double and vacation) + Taxable vacation pay + all types of bonuses for which the Pension Fund box is checked. NOTE: The amount of Taxable vacation pay comes from the Hours Management in the Taxable VacPay field.	0			X
SALREG0	Hours paid at regular time + all types of bonuses at regular time for sector 0.	0
SALOVER0	Hours paid at time-and-a-half + all types of bonuses paid at time-and-a-half for sector 0.	0
SALDOUBLE0	Hours paid at double time + all types of bonuses paid at double time for sector 0.	0
SALREGRAT	Hours paid at regular time * regular hourly rate. NOTE : Does not include premium and bonus, only worked hours.	All
SALREGRAT0	Hours paid at regular time * regular hourly rate for sector 0. NOTE : Does not include premium and bonus, only worked hours.	0
HRPAYE0 or HRPAID0	Paid hours (regular, half, double) + all types of bonuses for which the Committee Calculation in Hours box is checked for sector 0. NOTES: Income bonuses are calculated based on regular time. Paid vacation days are not included in this variable.	0
HRTRAV0 or HRWORKED0	Paid hours (regular, half, double) + all types of bonuses for which the Committee Calculation in Hours box is checked for sector 0. NOTES: Income bonuses are calculated based on regular time. Paid vacation days are not included.	0
SALTOTEMP	Paid hours (regular, half, double) + all types of bonuses for sector 0 for which the Committee Calculation in Salary box is checked.	0				X
SALSYNDICAT	Paid hours (regular, half, double) + paid vacation + all types of bonuses for which the Affect the union calculations in salary box is checked.	Based on Config.					X
VACIMP	Amount of taxable vacation paid comes from Hours Management. NOTE: This amount can be entered manually in Hours Management, Taxable VacPay field or automatically if you use a bonuses type Vacation.