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 is required for accurate tax calculation. It is best practice to include 40 hours per week for full-time employees. |
| 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 | For most employees, 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. For 2% shareholders, the full imputed cost for GTL must be reported as income. For these employees, GTL is not reported in Box 12 of the W-2, and is reported instead in Box 14. |
| 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. |
2% Shareholder Earning Types
2% shareholders are employees who own more than 2% of the outstanding stock of the corporation or stock possessing more than 2 percent of the total combined voting power of all of the stock of a corporation. This also includes spouses, children, and grandchildren of the employee. 2% shareholders of S corporations are not eligible for Section 125 Cafeteria Plans and pre-tax HSA contributions. These benefits are taxable, and must be reported to Check as imputed wages. A Single-Member LLC can also elect to be taxed as a 2% shareholder.
Employees of S corporations and LLCs can be marked as a 2% shareholder in Check by setting either the 2_percent_shareholder_s_corporation or the 2_percent_shareholder_llc company-defined attribute to true. Once an employee is declared as a 2% shareholder, these taxable benefits can reported using the following earning types:
| 2% shareholder earning type | Label | Description |
|---|---|---|
| 2_percent_shareholder_benefits | 2% Shareholder Benefits | Health and accident insurance premiums paid on behalf of a 2% shareholder. 2% shareholder benefits earnings are taxed differently than regular earnings. These wages are reported in Box 14 of the W-2. |
| 2_percent_shareholder_hsa | 2% Shareholder HSA | Company HSA contributions paid to a 2% shareholder. 2% shareholder HSA earnings are taxed differently than regular earnings. These wages are reported in Box 14 of the W-2. |
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:
-
Reasons for sick time —
ffcra_sick_individualis for individuals who have to miss work due to quarantine or COVID for themselves.ffcra_sick_otherincludes the above but also includes illness due to vaccination, testing waiting periods, or caring for someone who is sick from COVID. -
Wages and tax credits —
ffcra_sick_individualspecifies 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_otherspecifies 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.