Generated earnings are earnings or pay amounts, based on other earnings, deductions, or accumulators, that are calculated by Dayforce during the payroll process. Examples of generated earnings include bonuses that are calculated as a percentage of regular pay, contributions employers make into pensions, 401(k), or RRSP accounts, or reimbursements for expenses incurred.
You can configure generated earning definitions depending on who receives payment for the specific earning. For example, an expense reimbursement earning is paid to the employee. On the other hand, an earning that is a contribution to a pension, 401(k), or RRSP account, is sent to a third party payee.
If you are configuring the definition for a generated earning that is paid to a third party payee, you must first set up the third party payee in Dayforce. Information and instructions are available in Third Party Payee Configuration.
Configuring generated earnings involves these general steps:
- Creating earning definitions
- Configuring the parameters that define how to calculate the generated earning and what that calculation is based on
- Defining the specific values used in the calculation
- (Optional) Selecting the payee that receives the generated earnings payment
- Electing which employees receive the earning