Type

Select the type of deduction and earnings code from the list:

• Deduction from Net Pay After Tax - deducted from an employee's net pay after the taxes are calculated (such as a charitable contribution). The Description and Liability Account fields must be entered when this type is selected. This is the default value. If you change the type, another form is displayed.
• Earning Added to Pay - added to the employee's pay after the deduction and earning calculation process. (See the example that follows in the discussion of Pre-Deduction Earning.) An earning may or may not be taxable. Bonus or travel expense reimbursements are examples of the earning type of deduction.
• Before-Tax Deduction From Gross Pay - deducted from an employee's gross pay before the taxes are calculated. A G/L Account number must be entered to identify the liability account associated with this deduction. A retirement plan is an example of a before-tax deduction.
• Worker's Compensation - deducted for Worker's Compensation. Some states require that an employee contribute to the Worker's Compensation program.
• Meals; Moving; Non-Tax Reimbursements - earnings for meals provided for the employee.
• Tips Reported By Employee - earnings received from tips and reported to the employer.
• Pre-Deduction Earning Added to Pay - added to gross pay prior to calculating other deductions and earnings. An earning may or may not be taxable.

See Example: Determining the Difference between Earnings and Pre-Deduction Earnings.