Payroll Earning Codes

Customers with employees in Australia, New Zealand, or Asia can instead use the Payroll Earning Codes (Asia Pacific) wizard to create new payroll deduction codes and install them into Dayforce.

Use the Earning YTD Data template to upload the key information for initial setup of Earning codes. This data makes sure that Activate starts with the same codes that are currently in your legacy payroll system.

Note: Complete this step using present-day employee information.

Use the Earnings Election Data template to upload the key information for the initial setup of Earning codes. This data makes sure that Dayforce marks specific codes as being elections. Elections can be added to employee profiles so they’re added to their pay on a regular interval or basis.

If you’re using the Benefits wizard, include benefit earnings here on the initial load so that the corresponding payroll codes can be added to Dayforce.

The Payroll Earning Codes wizard creates a summary of the unique earning codes found in the templates. The wizard creates a table that lists the following for each earning code:

• Country
• Payroll Identifier
• Earning Code
• Earning Description

To make sure that the earnings have the right taxes and set up, walk through a series of setup steps. Several of the Earning Question pages use Drag and Drop pages. These pages are different from many of the table and question pages in the wizards. A more direct hand is needed to set the data correctly. See the Drag and Drop Pages section (see below).

When the earning codes are complete in Activate, install them in Dayforce.

Earnings are amounts that are added to create an employee’s gross pay during the calculation of gross pay. In Dayforce, each earning code falls into one of the following categories or earning types:

• Normal: The Normal earning type represents earnings that are paid as income and taxed.
• Reimbursement: Reimbursement earnings represent expenses (such as hotel or gas costs) that employees have paid and that the employer is paying back.
• Taxable Benefit: Taxable benefits can refer to benefits of employment outside of cash compensation. Examples include low- and interest-free loans, gifts, holiday trips, and prizes. The values of these benefits are taxed as part of the employment income.
• Memo Calc: Memo calc earnings are payments or earnings that employees receive but that aren’t paid as income. An employer putting money into an RRSP or pension plan is an example of a memo calc earning. For memo calc earnings, the employees aren’t receiving the money as income today (as a check or directly deposited to their bank account), but they’re earning some amount. Memo calc earning codes are also not taxed.
• Salary Sacrifice: Salary Sacrifice earnings are earnings that are an entitlement to cash pay. This earning type applies to the UK.

Actively incompatible with the data in Dayforce. If you have a data error, you must resolve the error before you can complete the installation.

Indicate nonstandard setup that could potentially cause an error in Dayforce. For example, if an earning code is defined as Hours x Rate and the data is amount only, the system creates a warning. However, you can still import the data into the system.

A notable occurrence of data in the system. For example, an informational note shows if codes are dropped from the YTD import.

1. In Activate Central, click Build Dayforce.

   The Build Dayforce wizards are shown.

2. Click Payroll Earning Codes.

Note: This page opens if payroll earnings codes have been uploaded previously and you selected I want to add more in Activate Central.

1. Read the information on the page.

   Note the following:

   • Any previously loaded codes are removed from the load process to prevent conflicts in mappings.
   • Activate tries to match new codes you provide to existing codes. You can choose not to accept these mappings and generated new codes.
   • You aren’t required to complete the wizard in the same strict order as the first time this Wizard was completed.
2. Click Next.

1. Review the code table created by the wizard and verify that:
   • No codes are missing.
   • The data looks correct.

   Note: If no new codes are provided, you can go back and upload new files or return to Activate Central

2. If data is incorrect or missing, click Back and review the data imports.
3. Click Next.

The earnings assigned to the Earnings that report in boxes 10, 11, 12 or 14 category must be assigned to the appropriate box on the Form W-2.

1. For each row in the table, select the appropriate radio button to assign the earning to the appropriate box on the Form W-2/T-4.

   Note: Click in the heading row to show a description of the box.

   Note: Click the tabs at the top (All Codes, Mapped Codes, Unmapped Codes) to show all codes (the default) or specific categories of codes. You can use the Search field to search for additional codes.

2. Click Next.

   Note: To continue, all earnings must be assigned to a box on the Form W-2.

The earnings assigned to the Display in Additional T4 or RL-1 Box category must be assigned to the appropriate box on the T4-Rl-1.

1. Select each item in the Uncategorized section on the left and drag it to the gray box under the appropriate category on the right.

   Payroll identifiers with the same country, code, and description are grouped as a single item. You can filter the Uncategorized list to search for specific earnings

   Note: Click the tabs at the top (All Codes, Mapped Codes, Unmapped Codes) to show all codes (the default) or specific categories of codes. You can use the Search field to search for additional codes.

   Note: If payroll earnings codes have been uploaded before, you can map the new earnings codes to existing earnings codes in Dayforce.

   Note: You can click Ctrl+Shift to select and move multiple items at the same time.

2. Click Next

   Note: All earnings must be assigned to a box on the T4/Rl-1 to continue.

1. In the Taxation Method column for each row, click the drop-down list and select the appropriate taxation method for the earning.

   If the Error icon () shows next to the field, no eligible mappings are given for the data and answers. Click Back to return to the previous page and make your corrections.

   Note: To filter the codes shown, select All Codes, Mapped Codes, and Unmapped Codes.

   Use the Search field to find a code shown on the page. To clear text in the Search field and reset the filter, click the Close button ().

2. Click Next.

   Note: All groups or underlying codes must be assigned a taxation method to continue.

1. Review the earnings groupings. Each grouping represents an earning to be created.

   Note: To filter the grouping shown, select Normal, Taxable Benefit, and Memo Calc.

2. To move an earning to a different group, select the earning and drag it to the new group.
3. To edit the information about an earning:
   1. Click Edit.
   2. Update the information as appropriate.
   3. Click Done.
4. To combine or separate an earning, select from the following buttons:
   • Merge
   • Split
   • Group

5. To combine or separate all earnings, select from the following buttons:

   • Merge All
   • Split All
   • Group All

   Note: You can’t split Canadian earnings that were mapped to the Vacation % Standard Payout – All CAN Provinces template earning in Activate into multiple separate earnings on the final consolidation page.

6. If you want to edit information about an earnings group, select the blue pencil to rename the Earning Code and assign the Debit/Credit Ledger Number. Taxable Benefit and Memo Calc. codes have a Debit and Credit Ledger Number.

   For UK earning codes, specify whether a new earning should be included in Gender Pay Gap reporting.

7. Click Done.

When the earnings information is complete in Activate, you must install the information in Dayforce.

1. When you click Done on the Earning Questions page, a pop-up window shows to let you know you’re about to install Earnings into Dayforce.

   The pop-up cautions about the following:

   • Confirm that all codes have been separated or consolidated as required. Also confirm that the name, display name, credit, and debit journal codes have been entered. If you don’t separate and rename the codes on the consolidator page, the resulting definition in Dayforce is the Taxation Method name, and multiple codes are merged.
   • When this installation is started, you can’t add any more Earning definitions through Activate. If you have additional Earning definitions to add or change, do so before running the installation.
2. You can click Download to download and save the EarningGenerationHistory.xlsx to your computer.

   This Excel spreadsheet lists the information that’s being uploaded by the Activate wizard. The spreadsheet notes if any codes have been moved from the Payroll wizard to the Earning wizard for further Activate configuration. If this run is a later run of the Payroll Earning Codes wizard, the report includes the current values only.

3. Click one of the following:
   • No to return to the Consolidate or Separate Earnings into Multiple Codes page.
   • Yes to continue with the installation. The Loading Your Earning Data page opens.

     Click Yes one time only. Activate prevents the duplication of earning candidates.

4. Click one of the following:
   • Add Email and enter your email address to receive an email when the installation process ends, instead of waiting for it to finish.
   • Next when the installation is complete.

   Activate Central opens with the name of the Wizard now shown in green text and a green checkmark to the left of the wizard’s name. The current day, date, and time of completion are included, along with your name as the user who completed the wizard. The environment in which the installation was applied (Stage, Config, or Train) also shows.

   Note: If you want to add more Payroll Earnings Codes to the project, click I want to add more. You can run the Payroll Earning Codes wizard again, even if it’s marked as “Bypassed.” Doing this step enables you to rerun the wizard for phased implementations. See s the Executing a Rollback When Using the “Add More” Feature in the Payroll Wizards topic for additional information.

This page of the Earnings wizard asks you to separate US Earning Codes into Special Taxation Category or Other Earnings. The categories are:

Any codes that have been selected as fitting Special Taxation for boxes 10, 11, 12, or 14 are shown here.

Select the radio button beneath the appropriate box in the table to select the appropriate W-2 box for each code. W-2 codes with the same “code, description, and country” are grouped into a single-line item.

If you’re unsure which box is most appropriate, select the information icon beneath the listed tax to review a short explanation.

This page of the Payroll Earning Codes wizard asks you to separate Canada Earning Codes into Special Taxation Category or Other Earnings. The categories are:

Any codes that have been selected as fitting Special Taxation for T4 boxes are shown here.

To select the appropriate T4 box for each code here, select the radio button beneath the appropriate box in the table.

If you’re unsure which box is most appropriate, select the information icon beneath the listed tax to review a short explanation.

This page of the Earnings wizard asks you to separate Canada Earning Codes into CAN Vacation % of Earnings Paid Every Period or Other Earnings. The categories are:

Any codes that have been selected as fitting paying out CAN Vacation % of Earnings Paid Every Period are shown here with a drop-down list to select taxation. However, the only taxation option available on this page is “Vacation % Standard Payout - All CAN Provinces.”

This page prompts you to separate codes into the following categories:

• Normal: The Normal earning type represents earnings that are paid as income and taxed.
• Reimbursement: Reimbursement earnings represent expenses (like hotel or gas costs) that employees have paid and that the employer is paying back.
• Taxable Benefit: Taxable benefits can refer to benefits of employment outside of cash compensation. Examples include low- and interest-free loans, gifts, holiday trips, and prizes, among others; the values of these benefits are taxed as part of the employment income.
• Memo Calc: Memo calc earnings are payments or earnings that employees receive but aren’t paid as income. An employer putting money into an RRSP or pension plan is an example of a memo calc earning. For memo calc earnings, the employees aren’t receiving the money as income today (as a check or directly deposited to their bank account), but they’re earning some amount. Memo calc earning codes are also not taxed.

This page prompts you to separate all codes that are categorized as Normal, and further subcategorize them based on how the employee is paid.

• Time Worked & Calculated by Hours x Rate: For any time worked that is paid based on the amount of time worked. For example, Regular pay or Overtime.
• Time Not Worked & Calculated by Hours x Rate: For any time away from work that is still paid based on how much time is taken away from work. For example, an employee doesn’t work Vacation, but they’re still paid based on how much time is taken.
• Time Worked but Not Calculated by Hours x Rate: For flat amount payments that are still tracked based on hours and time. For example, a Night Shift Premium only occurs based on the hours marked for the Premium, but could be a flat amount in addition to those hours.
• Flat Amounts Not Calculated by Hours x Rate: For flat amount payments that aren’t attached to a specific time. For example, a Bonus payment isn’t usually based on how many hours an employee has worked in the pay period.

This page prompts you to select from a drop-down list of taxes to find what tax most closely matches the earning of each row. If you’re unsure, select Miscellaneous Earning. When installed, you must change taxation later, as needed, in the Dayforce environment.

Note: Tax choices on this page are restricted to codes that are available to the code country. If a tax code is restrictive, it lists countries at the end of its name (example: CAN, US, CAN/US).

This page prompts you to select from a drop-down list of taxes to find what tax most closely matches the earning of each row. If you’re unsure, select Miscellaneous Earning. When installed, you must change taxation later, as needed, in the Dayforce environment.

Note: Tax choices on this page are restricted to codes that are available to the code country. If a tax code is restrictive, it lists countries at the end of its name (example: CAN, US, CAN/US).

This page prompts you to select from a drop-down list of taxes to find what tax most closely matches the earnings of each row. If you’re unsure, select Miscellaneous Earning. When installed, you must change taxation later, as needed, in the Dayforce environment.

Note: Tax choices on this page are restricted to codes that are available to the code country. If a tax code is restrictive, it lists countries at the end of its name (example: CAN, US, CAN/US).

This page asks you to select from a drop-down list of taxes to find what tax most closely matches the earning of each row. If you’re unsure, select Miscellaneous Earning. After installed, you must change taxation later, as needed, in the Dayforce environment.

Note: Tax choices on this page are restricted to codes that are available to the code country. If a tax code is restrictive, it lists countries at the end of its name (example: CAN, US, CAN/US).

This page prompts you to indicate which earnings represent Eligible Termination Payments, and need special attention during configuration.

On this page, the wizard shows groupings that are representative of each of the different codes that are going to be created in the Dayforce environment. Each box on this page lists new Earning Codes in groupings that show the different legacy codes that are being mapped to that one code. If more than one code could use the same taxation, the boxes can be consolidated, but codes are placed in separate subgroups that represent unique earnings.

This page is divided into separate tabs based on the previous categories that deduction codes have been separated into: Normal, Reimbursement, Taxable Benefit, Memo Calc