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.)