Types of earnings

Valid input for the type parameter of the earnings object.

Hourly Types

The following earning types require an hours amount.

Hourly earning type

Label

Description

hourly

Hourly (Regular)

Non-overtime hours worked by hourly employees.

salaried

Salaried

Hours worked by salaried employees. Even though you may not track hours by salaried employees, it's best practice to include 40 hours per week.

overtime

Overtime

Any hours worked by the employee that constitute overtime. Overtime earnings are taxed the same way as regular earnings.

double_overtime

Double overtime

Any hours worked by the employee that constitute double overtime. Overtime earnings are taxed the same way as regular earnings.

paid_holiday

Paid holiday

Any hours worked by the employee on a holiday. Paid holiday earnings are taxed the same way as regular earnings.

pto

Paid time off

Paid time off (PTO) describes time for which an employee is paid, but during which they did not work. PTO earnings are taxed the same way as regular earnings.

sick

Sick

Paid time during which the employee was off sick. Sick earnings are taxed the same way as regular earnings.

piece

Piece

Work where the employees are paid at a fixed piece rate for each unit produced. Piece earnings are taxed the same way as regular earnings.

rest_and_recovery

Rest and recovery

Uninterrupted breaks in which the employee can not be required to work but must be compensated for. Rest and recovery earnings are taxed the same way as regular earnings.

non_productive

Non-productive

Any hours under the employer's control, exclusive of rest and recovery periods, where there is no work or work cannot be completed due to factors beyond the employees' control. Non-productive earnings are taxed the same way as regular earnings.

Memo Hour Types

The following earnings types have their associated hours already accounted for in other earnings. These hours are needed to display on the paystubs and reports, but will not count towards the employee’s total hours worked for tax reporting purposes.

Memo hour earning type

Label

Description

tip_credit_adjustment_to_minimum_wage

Tip credit adjustment

Any additional contributions made by an employer to ensure that a tipped employee is meeting the minimum wage requirement. Tip credit adjustments are taxed the same way as regular earnings

piece_adjustment_to_minimum_wage

Piece adjustment

Any additional contributions made by an employer to ensure that a piece-rate worker is meeting the minimum wage requirement. Piece adjustments are taxed the same way as regular earnings. Requires a piece earning.

weighted_overtime

Weighted overtime

Any weighted overtime pay that a piecework employee makes. Piece overtime is taxed the same way as regular earnings. Requires a piece earning

weighted_double_overtime

Weighted double overtime

Any weighted double overtime pay that a piecework employee makes. Piece double overtime is taxed the same way as regular earnings. Requires a piece earning

Non-Hourly Types

The following earning types do not accept an hours amount.

Non-hourly earning type

Label

Description

bonus

Bonus

Bonus payment to an employee. Bonus earnings are taxed differently than regular earnings.

commission

Commission

Payment to an employee based on commission. Commission earnings are taxed differently than regular earnings.

severance

Severance

Payment to an employee as a one-time sum at termination. Severance pay is not the same as the payment for final hours worked, and is taxed differently than regular earnings.

cash_tips

Cash tips

Tips that an employee has already received in cash. Cash tips will be taxed normally, but will not be included in the employee net pay because they have already received them.

paycheck_tips

Paycheck tips

Tips that an employee has not yet received. Paycheck tips will be taxed normally and will also be included in the employee net pay, because they have not already received them.

group_term_life

Group term life

The imputed cost of coverage in excess of $50,000 for Group Term Life (GTL) must be included in income. The total can be calculated using the IRS Premium Table. GTL imputed income amounts are subject to social security and Medicare taxes.

Group Term Life is reported in Box 12 (code C) of the W-2.

other_imputed

Other imputed

Income imputed from sources other than group term life insurance. These earnings will be taxed normally. Some examples include use of a company car or a gym membership.

non_hourly_regular

Non-hourly regular

Income not associated with hours, such as paid leave. This is taxed as regular earnings.

FFCRA Types

The Families First Coronavirus Response Act (FFCRA) allows employers to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. All FFCRA earning types require an hours amount and are taxed differently than regular earnings.

Do note that there are two primary distinctions between ffcra_sick_individual and ffcra_sick_other:

  1. Reasons for sick time — ffcra_sick_individual is for individuals who have to miss work due to quarantine or COVID for themselves. ffcra_sick_other includes the above but also includes illness due to vaccination, testing waiting periods, or caring for someone who is sick from COVID.

  2. Wages and tax credits — ffcra_sick_individual specifies pay (and tax credits) at either their regular rate or the applicable minimum wage, whichever is higher, up to $511 per day and $5,110 in the aggregate (over a 2-week period). ffcra_sick_other specifies pay (and tax credits) at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $2,000 in the aggregate (over a 2-week period).

FFCRA earning type

Label

Description

ffcra_sick_individual

Covid sick individual

Earnings that are "paid sick leave at the employee’s regular rate of pay". An employer would offer this to someone unable to work because they are either quarantined or experiencing symptoms of COVID-19 and seeking medical advice.

Employees taking leave are entitled to pay at either their regular rate or the applicable minimum wage, whichever is higher, up to $511 per day and $5,110 in the aggregate (over a 2-week period).

ffcra_sick_other

Covid sick other

Earnings that are “paid sick leave at the employee’s regular rate of pay”. An employer would offer this to someone unable to work because they are either quarantined, experiencing symptoms of COVID-19 and seeking medical advice, have been tested for Covid-19 and are awaiting results, or have received the Covid-19 vaccination that either resulted in sickness or requiring them to miss work.

Employees taking leave are entitled to pay at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $2,000 in the aggregate (over a 2-week period).

ffcra_family_leave

Covid family leave

Earnings that are "paid expanded family and medical leave at two-thirds the employee’s regular rate of pay". An employer would offer this to someone who needs to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.

Employees taking leave are entitled to pay at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $12,000 in the aggregate (over a 12-week period).

California COVID-19 Supplemental Paid Sick Leave

Support for California 2022 Supplemental Paid Sick Leave (SPSL) is available under the earnings type ca_spsl. Check will also display the necessary additional information on employee paystubs to maintain compliance with California SB 114.

California SB 114 (2021-2022 legislative session) requires employers with 26 or more employees to provide up to 80 hours of COVID-19 Supplemental Paid Sick Leave (SPSL) to employees who are unable to work or telework due to certain reasons related to COVID-19.

The 80 hours of SPSL is divided into two separate types of leave. A covered employee can receive up to 40 hours of each type of leave, for a total of 80 hours. Per California DIR’s instructions, both types can be listed under ca_spsl without the need to create an individual line for each.

The SPSL covers the time period of January 1, 2022, to September 30, 2022.

Paystub requirements

For employees with a workplace in California, CA SPSL must be listed separately from regular paid sick leave on their pay statement (or separate notice) when wages are paid. If no SPSL hours have been used, the pay statement (or separate notice) must indicate 0.