Create Time-Driven Earning Definitions

Before You Begin: Make sure that you are familiar with all of the elements that you will be using to create and edit earning definitions. See Earnings and the Earnings Tab.

Note: The availability of the Tax and Compliance dialog box depends on country selection. If your earning is associated only with a ConnectedPay-enabled country, this dialog box is bypassed, and tax and compliance is auto-assigned, based on the earning type that you select. If you select at least one native Dayforce country (for example, Canada, US, UK, or Ireland), the application prompts you with the Tax and Compliance dialog box to select a tax and compliance rule for that native Dayforce country.

To configure a time-driven earning definition:

Go to Payroll Setup > Earnings and Deductions, and click the Earnings tab and then Add.
In the Add Earning dialog box, select an Earning Type and the countries that you want to apply the earning to, and optionally; and, if necessary, select an option in the Process for Employment drop-down list. It is common to not make a selection in Process for Employment, unless you are adding an earning that is specific to contractors or pensioners.
In the Tax and Compliance dialog box, click Select a Rule to display a list of available earning codes.
Select an earning code that matches the earning definition you are creating and, click Select this Rule and then Finish.
In the General sub-tab, enter a name and description for the earning definition.
In the Display Name field, enter a short name for the earning that will be printed on earning statements prepared by the Dayforce Back Office.
In the Reference Code field, enter a cross-reference code. See Cross-Reference Codes.
Select the Pay Entry Rates option, which makes the Pay Entry Rates sub-tab available.
(US Only) Select the PPACA Hours checkbox if hours that are recorded to the earning code count towards PPACA hours for employee benefit eligibility. See PPACA Setup.
In the Groupings section, select one or more of the following options to group the earning: Hours Worked, Overtime Hours, or Overtime Earnings.
In the Statement Overrides section, select Apply Report Output Setting (Default), Display, or Do Not Display for each drop-down list to either display or not display the associated information in employee earning statements. If you select Apply Report Output Setting (Default), the global default setting is applied in Payroll Setup > Report Output in the Reports tab in the Earning Statement option.
In the Options sub-tab, in the Source drop-down list, select Payroll.
(Optional) In the Separate Check drop-down list, select Alternate Check, or select the check template that the application should use when paying employees for the earning, if necessary. If you select Alternate Check, the earning is paid on an additional check, by default.
Depending on the type of earning you are configuring, select one of the following:
- For a gross up earning:
  1. Select the Gross Up checkbox to configure the application to adjust the amounts entered as quick entries for this earning.
- For a memo calc earning:
  1. Select the Allow hours without amount checkbox to allow payroll administrators and other authorized users to record hours-based memo calc adjustments without accompanying dollar amounts.
  2. Select the Allow Unpaid Time to Reduce Auto Pay Amount checkbox to reduce employees' autopay based on hours-based pay adjustments without accompanying dollar amounts.
If necessary, specify a Debit Journal Number or Credit Journal Number to use in exporting general ledger information from Dayforce. See General Ledger Setup.
Select the Premium checkbox to display all or part of the earning as a separate, premium line item in the General Ledger.
If necessary, record the percentage of the earning to be considered premium in the Premium Portion field. If left blank when the Premium checkbox is selected, the application automatically allocates 100% of the earning as premium.
Select the Extend Date Effectiveness to Pay Date checkbox to configure the earning so that it is applied for a pay period even if employees are assigned the earning after the pay period end date but before the pay date.
Select the Use in Pay Sync for Non-AutoPay Retros checkbox for the earning code to be eligible for the application to generate retroactive adjustments when you run the pay sync process for non-auto pay employees in Payroll. See "Sync Pay for Non-Auto Pay Retro Base Rate Changes" in the Payroll Administrator Guide.
(US Only) Select the Allow Multi Jurisdiction Allocation Split checkbox to apply a multi jurisdiction split to an earning when a split is configured for an employee in the Multi Jurisdiction Allocation % or Telecommuter % fields in the Work > Work Assignments screen of the People feature. For an example of how this option works, see the description of this checkbox under "Options" of the "General Sub-Tab" section in Earnings and the Earnings Tab.
If the earning is a Canadian Employment Insurance reimbursement earning, complete the following steps. Otherwise, proceed to the step 18:
1. Select the EI Refund checkbox, which adds the Pay Groups sub-tab next to the Tax and Compliance sub-tab.
2. Click the Pay Groups sub-tab to assign the earning and effective dates to a pay group. You can assign this earning to employees in that pay group in the Earnings tab in Payroll > Payroll Elections of the People feature. See “Employee Payroll Elections” in the Payroll Administrator Guide.
When you select the Use in Pay Sync for Non-AutoPay Retros checkbox, the application displays the Alternate Earning for Retro drop-down list below it, which is cleared by default. See "Sync Pay Feature for Non-Auto Pay Retro Base Rate Changes" in the Payroll Administrator Guide.
Click Save and then Refresh.

After you configure the earning definition, you can map the earning definition to the appropriate pay codes and pay categories to ensure that the appropriate paid time is classified into the right earning definitions, as described in Define Payroll Mappings for Time-Driven Earnings .