Earning Types

Use the Earning Types function to set up and maintain the different types of pay employees can receive.

NOTE: You must set up earning types before you set up earning codes.

The following earnings types are preset in Traverse and cannot be changed:

  • B - Bonus pay
  • C -Commission pay
  • F - Fringe (An earning code that is earning type F and is reported in box 12 of the W-2 form)
  • L - Leave (An earning code with an earning type L could include sick pay, vacation pay, paid-time-off, maternity leave, etc.) If you elected to use Automatic Accrual of Leave Time in the business rules, you must use the earning type L in earning codes used to record leave pay. The system will deduct earning type L earning code transactions from the selected Remaining Leave Hours amount on the Pay tab in the Employee Information function.
  • M - Miscellaneous
  • O - Overtime pay
  • R - Regular earnings
  • T - Tips reported as federal earnings (Earning codes with earning type T are accumulated for W-2 reporting in the FICA Tips field on the Employee History screen's Miscellaneous tab. When you print W-2 forms, the amount in the FICA Tips field prints on the form and in the magnetic media file)

 

All user-defined earning types added to the system are treated as regular pay, using the values entered in the Multiplier and Add to Base fields on the Earning Codes screen to determine pay.

Creating an Earning Type

  1. Click the New button, on the toolbar, to open a blank earning type record.
    Note: All user-defined earning types added to the system are treated as regular pay, using the values entered in the Multiplier and Add To Base fields on the Earning Codes screen to determine pay.
  2. Enter a new earning type ID in the Earning Type field.
  3. Enter a description of the new earning type in the Description field.
  4. Determine whether to add the earning code's pay to the employee's regular pay by leaving the Replace check box clear, or mark the Replace check box to replace the employee's pay with the earning code's pay. For salaried employees: Clear the Replace check box to add the earning code's pay to the employee's regular salary, or mark the check box to replace the employee's salary with the earning code's pay.
  5. Close the screen to save the new earning type.

Editing an Earning Type

  1. Select an earning type to edit from the Earning Type field.
  2. Edit the fields as necessary.
    Note: The earnings types of B, C, F, L, M, O, R, and T can only have the Description and Replace fields edited.
  3. Close the screen to save any changes made to the earning type.

Deleting an Earning Type

  1. Select an earning type to delete from the Earning Type field.
    Note: You cannot delete the earning types of B,C, F,L,M, O, R, and T.
  2. Click the Delete button, on the toolbar, to delete the selected customer's record.
  3. Click Yes at the "Are you sure you want to delete selected record(s)?" prompt.