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.