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

Description

hourly

Non-overtime hours worked by hourly employees.

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

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

double_overtime

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

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 (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

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

Non-Hourly Types

The following earning types do not accept an hours amount.

Non-hourly earning type

Description

bonus

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

commission

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

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

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

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

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

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.

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

Description

ffcra_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

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

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).