The Experience - Shared !

Very important information related to accounts setup for payroll elements POST pay statement will: Summarized Information Title Debit Credit Earnings Earning Code Account Expense Payroll Parameters - Salary Payable Clearing Account Salary Payable Benefit Deductions Payroll Parameters - Salary Payable Clearing Account Salary Payable (Lowers the payable) Benefit Plan Account Expense Benefit Contributions Benefit Plan Account Benefit Expense Posting Definition Allowance Payable or Salary Payable Employee Taxes Payroll Parameters - Salary Payable Clearing Account Salary Payable Tax code account. Tax Expense. Read details for Expense credit rule Employer Taxes Tax code account. Tax Expense Expense for the company Posting Definition Tax Payable - need to pay to the authority. Earnings : The earning cost is debited to the main account specified on the earning code

As per the Human Resources terminology, the term Fringe Benefits is used as follows DEFINITION OF 'FRINGE BENEFITS' A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are met. Any employee who receives taxable fringe benefits will have to include the fair market value of the benefit in their taxable income for the year, which will be subject to tax withholdings, and social security benefits payments. INVESTOPEDIA EXPLAINS 'FRINGE BENEFITS' Fringe benefits commonly include health insurance, group term life coverage, education reimbursement, childcare and assistance reimbursement, cafeteria plans, employee discounts, personal use of a company owned vehicle and other similar benefits.

Select the rate at which the earnings are calculated. For example Select Hourly for hourly earnings. If you are creating an earning with an amount that is paid over a period of time, select Pay period, Monthly or Annual. Select Flat amount for one-time earnings.

A very important information related to Payment run type. As suggested by Microsoft. Best Practice: Select the Primary and additional option in the Payment run type field when you create the earning codes that are usually used only in primary payment runs. If you select Primary and additional, you can use the earning code multiple times in one pay period.

Unit of measure - Hours - Each - Pieces Select Hours for all earnings which pay out based on time or salary. Select Each for all earnings which pay out based on dollars only such as a bonus, fringe benefit, etc. Select Pieces for earnings which payout based on the number of pieces processed. Examples: For House Rent use Hours For Basic Salary use Hours