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
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:
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.
- 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 union calculation (available through Union Management), if the Source of hours is set to 1 - 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.
- 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.
- Click Save.
- Click Quit.
See alsO
- Employee Management
- Payroll Reconciliation
- Tax Code Table
- Define Tax Code Usage
- Project Inquiry
- Define Withholding Tax (U.S.)
- Reading Tax Codes in maestro*
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.