About Earnings Code Sequences

Earnings codes determine both the print order on reports and check stubs and the sequence in which the system processes automatic earnings.

When you set up an earnings code, it is important to consider the order in which earnings should be processed. This is particularly important for deductions or reductions based on earnings. The system processes smaller numbers first, so make sure you assign your earnings code numbers accordingly.

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.

Note: Remember, the earnings code number also controls the print order on reports and check stubs. Codes with lower numbers will appear earlier in the list.

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

Note: 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.