Adjustment entries and their associated components depend on the kind of adjustment that you are making. There are four main types of adjustments:
- Earnings
- Deductions
- Garnishments
- Taxes
Creating adjustments involves defining settings that are located in the columns of the Adjustments sub-tab. When you enter an adjustment, you can click within a column or press the Tab key to highlight a field and then make an entry in it.
The Pay Run Management and Data Entry versions of the Adjustments sub-tab both have the same settings, except the Data Entry version also includes a Pay Run setting (because in Data Entry you can work on multiple pay runs). See Data Entry Tab.
While there are some settings that are always mandatory for an entry, such as Employee Name and Code, the settings used depend on the type of entry. Moreover, some columns don’t contain settings and are informational only. For example, the Saved By column displays who last saved changes to each entry in the list.
The adjustment entry components are listed below in the default order in which they appear in the Adjustments sub-tab and are as follows:
- Employee Name
- Employee No.
- Entries
- Third Party Sick Pay Provider
- Tax Treatment
- Message
- Override Resident PSD Code
- Import Set
- Saved By
- Saved At
- Code
- Prior Run
- Wage Type
- Hrs.
- Amount
- Limited Taxable Wages
- Total Taxable Wages
- Override DTS Code
- Job Assignment
- Work Location
- Legal Entity
- Hours Worked
- Other Special Wages
- Workers Comp Account
- Workers Comp Code
- Labor %
- Labor Metrics
- Apply ROE Mapping
- EI Reference Code
- Message
- Do Not Disburse to Payee
- Send To Payment Solutions
- Saved By
You can enter all or part of a name in the Employee Name field to search for an employee to whom you want to assign the adjustment.
When you select an employee, the application automatically populates the following fields:
- Employee No.
- Job Assignment
- Work Location
- Legal Entity
The Job Assignment, Work Location, and Legal Entity fields are populated based on the employee's primary work assignment, but you can select one of the employee's other work assignments, if applicable.
You can enter an employee number in the Employee No. field to search for an employee to whom you want to assign the adjustment.
When you select an employee, the application automatically populates the following fields:
- Employee Name
- Job Assignment
- Work Location
- Legal Entity
The Job Assignment, Work Location, and Legal Entity fields are populated based on the employee's primary work assignment, but you can select one of the employee's other work assignment if applicable.
This link is displayed when you set the Employee Name or Employee No. for an adjustment that you're adding. When you click the link, a resizable Entries dialog box opens where you can view, create, edit, or delete entries for the selected adjustment. This link is also displayed for existing adjustments.
This setting is for use with the feature for managing third party sick pay entries.
(US only)
Enter any comments that you want associated with the item in the Message field, which has a 256-character limit.
Enter the PSD code you want applied to the adjustment in the Override Resident PSD Code. Political Subdivision (PSD) codes are only relevant to employees in Pennsylvania. They are reported with the employee's wages and taxes as part of the quarterly reporting process. If a code is specified, the application uses it instead of the code determined from the employee's current address.
Without specifying an override, the application uses the employee’s current address and PSD code for any adjustments recorded. For example, if you enter two adjustments, moving some earnings incorrectly reported as overtime to a bonus earning, the application reports those earnings under the employee’s PSD code that was effective when the adjustment was made.
If the employee has moved so that their current PSD code doesn’t match the code that the adjusted earnings should be reported under, you can override the PSD code associated with the adjustment by typing the correct PSD code in the Override Resident PSD Code field.
If you imported the adjustment entry, this read-only setting displays the associated import set name. Import set name is defined when you or other users import an entry, and allows you to sort and filter entries by a specific import. For more information, see the following topics:
For importing and exporting in the Pay Run Management version of the Adjustments sub-tab:
For importing and exporting in the Data Entry version of the Adjustments sub-tab:
Displays which users created or last saved changes to each item.
Displays the date and time at which an item was added or last saved.
Adjustment Entry Settings
You can enter a value in the Code setting to filter the list of available codes. This defines the type of entry that is being recorded. If you are unsure of what codes can be applied to employees, contact your system administrator.
In the Code setting, the application displays all of the earning, deduction and tax codes used by your organization that are applicable to the country where the employee works. For example, if your organization operates in both the US and Canada, and you have loaded a US pay run, the application displays all US codes, and no Canadian codes.
While the application displays all codes for a country, not all codes might be applicable to all employees. If a code isn’t applicable to the employee, the application doesn’t process the item. When you save the entry, the application displays a warning message in the Problems panel to indicate that the entry couldn’t be processed.
The application only displays garnishment codes if there are any active garnishments currently applied to the selected employee. Garnishment codes include the name and, in brackets, the case number:
See Adjustments for Garnishments.
Enter the first digit of the number of the pay run to which the adjustment applies in the Prior Run field.
Indicates the wage component that is subject to the tax code or deduction selected in Code. This field is only active for specific tax codes and deductions.
For example, when you select the Pennsylvania withholding tax (PA W/H) in Code, the Wage Type drop-down list shows the courtesy, reciprocal, and non-reciprocal wage types for Pennsylvania residents. For Canadian organizations, when you select CPP in Code, the Wage Type drop-down list shows the additional CPP/QPP contribution type you can use to adjust payments that include this type of CPP/QPP contribution.
You can enter the number of hours associated with the entry in the Hrs. field, if necessary. A value in the Hrs. field is required if you selected an earnings code that has hours associated with it. For example, if you are recording that the employee worked another eight hours of regular earnings, you'd enter the appropriate earnings code in the Code field and then 8 in the Hrs. field.
For earnings with hours and rate specified, the application calculates the amount and populates the Amount field automatically.
The rounding value for the Hrs. field is up to two decimal places.
You can enter a dollar amount in the Amount, if necessary. For earnings with hours and rate specified, the application calculates the amount and populates the Amount field automatically. You can override this value by typing a new amount in the field, in which case the application adjusts the Hrs. value to match.
The amount can be either positive or negative depending on whether you want to add or subtract an earning, deduction, or tax amount.
The rounding value for the Amount field is based on the number of decimal places that you define in the Payroll Decimal Rounding Precision client property in the Payroll section of the Properties tab in System Admin > Client Properties.
Displayed for tax and deduction entries. For deduction entries, this column is only editable when you select a worker's compensation deduction in the Code column. This is because worker's compensation deductions track taxable wages similar to how taxes do, and so these columns allow you to update the wages as needed. See Taxable Wages for Canada and US Payroll.
Displayed for tax and deduction entries. For deduction entries, this column is only editable when you select a workers' compensation deduction in the Code column. This is because worker's compensation deductions track taxable wages similar to how taxes do, and so these columns allow you to update the wages as needed. See Taxable Wages for Canada and US Payroll.
(US only)
For example, Philadelphia, Pennsylvania has both a resident DTS Tax Code (DTS Tax = 3917) and a nonresident DTS Tax Code (DTS Tax Code = 3945) used for filing taxes. If an employee lives in Philadelphia (3917), but works elsewhere in the state, and that employee had the nonresident tax code (3945) applied to a pay run rather than the resident code of 3917, an adjustment must be executed to correct both the withholding amount as well as the DTS Tax Code.
When such an adjustment must be made, the payroll administrator can go to Payroll, load a pay run, and create an adjustment in the Adjustments sub-tab. When the payroll administrator enters the pay code used in the original pay run, the application populates the Override DTS Code field with the DTS Tax Code opposite to the one that was used in the original pay run. The payroll administrator continues to process the adjustment as usual.
When the adjustment has been applied, the application displays the adjustment, as well as the adjusted DTS Tax Code information, in any reports where this information appears, such as the W-2 Management Report or any Quarterly/Annual Filing Reports.
The Job Assignment setting defines the job assignment where the pay entry occurred. By default, the application populates the Job Assignment setting with the job assignment that is defined in the employee's primary work assignment. However, you can replace the value with a job assignment from the employee's secondary work assignment, if needed. If you update the Job Assignment setting, the Work Location and Legal Entity settings update to the values for that job assignment.
The Work Location setting defines the work location where the pay entry occurred. By default, the application populates the Work Location setting with the location that is defined in the employee's primary work assignment. However, you can replace the value with a location from the employee's secondary work assignment, if needed.
It is important that an appropriate location is linked with each item. If you are recording earnings, the location you select impacts the taxes the employee could pay as taxes are determined, at least in part, by the employee's work address.
If you update the Work Location setting, the Job Assignment and Legal Entity settings update to the values for that job assignment.
The Legal Entity setting is a read-only setting that displays the legal entity for the job assignment and location that is currently selected. This setting updates depending on which job assignment and location you select.
(US only)
The Hours Worked and Other Special Wages fields aid in filing quarterly payroll information for US customers who implemented Dayforce mid-quarter and have earnings configured as special for Florida, New York and Washington, or hours configured as special for Massachusetts, Minnesota, Oregon, Rhode Island, and Washington in Payroll Setup > Earnings and Deductions > Earnings in the General section in the United States tab under the Tax and Compliance sub-tab of a selected earning definition.
(US only)
The Hours Worked and Other Special Wages fields aid in filing quarterly payroll information for US customers who implemented Dayforce mid-quarter and have earnings configured as special for Florida, New York and Washington, or hours configured as special for Massachusetts, Minnesota, Oregon, Rhode Island, and Washington in Payroll Setup > Earning and Deductions > Earnings in the General section in the United States tab under the Tax and Compliance sub-tab of a selected earning definition.
If you selected a workers' compensation deduction code from the Code drop-down list, you must select an associated workers' compensation account from the Workers Comp Account drop-down list.
If you selected a workers' compensation deduction code in the Code drop-down list, you must select an associated workers' compensation class code in the Workers Comp Code drop-down list.
Before You Begin: The Labor % field is only used when you create an earning entry for an employee who has labor distribution defined in their work assignment.
For employees that work different job assignments or within different locations, you can use the Labor % field to define whether the items you record are split according to the employee’s labor distribution that is defined in People.
Employees that can work multiple job assignments or in multiple locations often have a labor distribution defined; users with access can define how to distribute the employee’s payroll costs among the employee's different job assignments or locations by recording values in the Labor % field in the Work > Work Assignments screen of People. For example, for an employee that works evenly among two work assignments, administrators can specify 50% in each work assignment.
This allows the application to split the payroll costs of that employee evenly between the two work assignments when exporting to the organization’s general ledger using the Payroll GL Export interface.
When you first add a new pay entry to the list, the Labor % field displays the No option, and the field isn’t editable. When you select an employee who has more than one work assignment, and who has a labor distribution configured for their work assignments, and you select an earning code, the application updated the Labor % setting to display the Yes option. When the yes option is selected uses the labor distribution (that is, allocation) that is defined for the employee in People.
If you click this setting to switch it to No, then the labor distribution defined in People is overridden for the entry. In this case earning entry is distributed entirely to the job assignment and work location specified in the item.
Before You Begin: In order to use this column, labor metrics must be configured in the Workforce Management module.
You can use the Labor Metrics column to assign one or more labor metric codes to an entry. When you add labor metrics to an entry and calculate payroll, the application displays the ledger codes for the relevant labor metrics to the GL Preview tab of the employee slide-out panel.
The Labor Metrics column is only enabled for entries to which you have assigned an earning code, because labor metrics are only used with earning entries. When you've selected an earning code, and you click the Labor Metrics field, the application displays an icon that you can select to assign labor metrics:
When you click the icon in the Labor Metrics column, the application displays the Labor Metrics dialog box. In this dialog box, the application displays a separate drop-down list for each labor metric type configured for your organization. Labor metric types are used in Dayforce to group sets of similar labor metric codes. In this example, the organization has configured four labor metric types:
You can expand the drop-down list and select up to one labor metric code for each labor metric type. You can enter all or part of a labor metric code to automatically filter the list.
When you select a labor metric code for one or more labor metric types and click OK, the application adds them to the Labor Metrics column, where they are read-only. You can hover over the field to view a list of each labor metric listed by type:
You can edit labor metrics for an existing entry by reopening the labor metrics field, where you can click the X to remove labor metric codes.
(Canada only)
(Canada only)
Enter any comments that you want associated with the item in the Message field, which has a 256-character limit.
For payroll codes that are related to a third party payee, you can select this option to define that the specific amount of the entry shouldn’t be included in the amount disbursed to that third party. This setting is typically used for adjustments that need to be entered for the employee but the respective third party has already received payment.
When you create a garnishment entry, the Send To Payment Solutions checkbox is selected by default. Leave this checkbox selected and the application includes the entry in the payroll impound amounts in the Payments tab, Payroll Summary Report, and Garnishment Summary Report. Clear this checkbox and the application excludes the entry from the payroll impound amounts seen in these areas.
You wouldn’t want a garnishment entry included in the impound amounts in the above areas in the case where the entry needs to be recorded in Payroll because it has been funded manually by contacting Payment Solutions directly.
Note: The Garnishment History Report shows all garnishments, regardless of whether you select or clear the Send To Payment Solutions checkbox.
Displays which users created or last saved changes to each item.