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 an employee makes. Weighted overtime is taxed the same way as regular earnings.
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.

Religious 501(c)(3) Earning Types

Clergy members of religious organizations may have a unique need to record allowance or housing (i.e., parsonage) earnings, which may or may not be taxable, but may need to be reported on the employee’s W-2.

Religious 501(c)(3)	Label	Description
allowance	Allowance	Allowance added to the regular paycheck. Used to add taxable car/auto or housing allowances.
reported_allowance	Reported Allowance	Allowance only added to the W2.
clergy_housing	Clergy Housing	Clergy housing added to the regular paycheck. This is sometimes referred to as parsonage and is considered to be non-taxable income.
reported_clergy_housing	Reported Clergy Housing	Clergy housing only added to the W2.

Note: A company will only be able to use these earning types if they are set up as a 501(c)(3).