Use the PR Earnings Codes form to set up earnings codes, which identify and categorize types of earnings, for example, hourly, salary, double time, and so on.

1. In the Earnings Code field, enter a number that uniquely identifies the earnings code
   Note: The numbers you assign to earnings codes determine the sequence in which the system processes earnings. See About Earnings Code Sequences for more information.
2. In the Description field, enter a description of the earnings code.
3. From the Method drop-down, select the method the system uses to calculate earnings. See Earnings Code Calculation Methods for more information.
4. In the Factor field, enter the number that the system multiplies the rate by when calculating this earnings code.
   Note: When entering the factor, enter time in increments of 0.5. For example, use 0.5 for half time, 1.0 for regular time, 1.5 for time and a half, 2.0 for double time, and so on. Earnings codes with a factor greater than 1 are considered premium time on cost reports.
5. If this earnings code should be included in the basis amount for calculating automatic earnings, select the Subject to Auto Earnings checkbox. Example: salary.
6. If the system should include this earnings code in the basis amount for calculating craft and class add-on earnings, select the Subject to Craft/Class Add-ons checkbox . Example: vacation add-ons.
7. If you want this earnings code to be considered a true earnings on the PR Certified Payroll Transcript, PR Certified Payroll Transcript With Class Info, and JC Cost reports, select the True Earnings for Payroll Reports checkbox.
8. Tto include this earnings code in determining the basis for overtime calculations, select the Include in OT Calculations checkbox.
   Note: This checkbox is disabled for factors greater than 1.0.
9. If you selected A-Amount from the Method drop-down, and if you want the system to include this earnings code in determining salaried earnings, select the Include in Salary Distribution Calculations checkbox.
   Note: If you select this checkbox and use this code to post hours by job, equipment, or account, the salaried employee’s pay rate and amount default to zero. Once you process the PR Salary Distribution form, the system calculates the correct rate and amount. For more information, see About the PR Salary Distribution Form.
10. If you want foremen or employees to be able to use this earnings code when entering timesheets in the PR My Timesheet form, select the Include in Remote Timesheet Entry checkbox. See Entering Timesheets for more information.
11. In the Earnings Type field, enter the earnings type that determines the GL account that the system expenses when updating earnings to GL. Press F4 to select from a list. See About the HQ Earn Types Form for more information.
12. In the JC Cost Type field, enter the cost type the system should use for interfacing earnings to JC. Press F4 to select from a list.
13. On the Additional Info tab, select the Australian Taxation Office category for this earnings code from the ATO Category drop-down, if necessary.

    • If you select ATO Category AT - Allowance Taxable or ANT - Allowance Non-Taxable, then select the appropriate type from the Allowance Type drop-down.

    • If you select Allowance Type O - Other from the Allowance Type drop-down, then select the appropriate type from the Other Allowance Type drop-down.

    • Finally, if these earnings should be included within calculations of employee gross earnings for STP Phase 1 reporting (PAYG Items 'INBGross' and 'HolidayGross'), select the Include in STP Gross Amounts checkbox.

14. For STP Phase 2 only, set up the following:
    1. If you want to include earnings posted to this earnings code when calculating gross amounts for an employee, select the Include in Employee Gross Amount calculation checkbox.
    2. If you want to include earnings posted to this earnings code when calculating reportable fringe benefit amounts for an employee, select the Include in Reportable Fringe Benefits Amount (RFBA) calculation checkbox.
    3. From the STP Category drop-down, select the appropriate category (if any) for STP Phase 2 reporting of this earnings code.
       Depending on the option you select, other fields in the STP Phase 2 section are enabled. See steps below.
    4. If you selected LSE as the STP Category, use the Lump Sum E Financial Year field to enter the prior financial year (YYYY) to which the arrears payment applies for this earnings code.
    5. If you selected AT or ANT as the STP Category, use the Allowance Code drop-down to select the allowance code for STP Phase 2 reporting of this earnings code.
    6. If you selected OD as the Allowance Code, use the Other Allowance Code drop-down to select the other allowance code for STP Phase 2 reporting of this earnings code.
15. Associate deductions and liabilities with this earnings code. See Associate Deductions and Liabilities with Earnings Codes for more information.
16. If you selected L-Allowance from the Method field, enter the earnings codes that are subject to this allowance on the Subject Earnings tab.

    If you selected R-Routine from the Method field, enter the earnings codes that are subject to this earnings on the Subject Earnings tab.

17. Save the record.