Example: Determining the Difference between Earnings and Pre-Deduction Earnings
This example describes the process of determining the difference
between earnings and pre-deduction earnings.
To determine the difference between an earning and a pre-deduction earning, employee 1 has the following salary and deductions and earnings set up:
Base Salary $500.00
D/E:
- Earning B1 100.00
- Earning B2 10.00
- Earning B3 10%
When Compute PR is executed, the following calculations are applied:
- Gross Pay: $660.00
- D/E 1: 100.00
- D/E 2: 10.00
- D/E 3: 50.00 (10% of 500.00)
Employee 2 has the following setup:
- Base Salary $500.00
- D/E:
- Pre-Deduct PD1 100.00
- Earning B2 10.00
- Earning B3 10%
When Compute PR is executed, the following calculations are applied:
- Gross Pay: $670.00
- D/E 1: 100.00
- D/E 2: 10.00
- D/E 3: 60.00 (10% of $500. + 100.)