About Earnings Code Sequences
When setting up earnings codes (in PR Earnings Codes), the code number/ID that you enter in the Earnings Code field is important in two respects: it determines the print order on reports and check stubs and it determines the processing order for automatic earnings.
For example, if a negative earnings code (salary reduction) is based on salary earnings, the salary earnings code should have a smaller number so that it is processed first.
The following table displays a sample list of earnings codes with a suggested processing sequence.
Earnings Code |
Description |
---|---|
1 |
Regular hourly |
2 |
Overtime hourly |
3 |
Double-time hourly |
4 |
Salary |
100 |
Vacation |
120 |
Sick |
401 |
401(k) |
550 |
Car allowance |
Keep in mind that the Earnings Code field allows up to five digits (from 0 to 32,767), so you can leave space between earning code IDs for future growth.