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SmartFusion Modules > Payroll > Parameters > Pay Type

Recent Changes:  
6.223 - Added a new field for "Default Pay Rate" and a checkbox for "Default Pay Rate on New Records".

6.205 (Supplemental) 
- Added 'Include hours as worked', visible only for North Carolina and South Carolina clients. It will be used to calculate the hours worked for the wage record in NC Unemployment Export File Format(CSV) and also SC Quarterly Wage Export File Format (CSV).

6.119 - Added "Box 14 Pay Types" to the selection of W2 pay types; Added "W2 note" when a Box 14 Pay Type is selected    

6.111 - Added "Earnings Type" field which is applicable only for Louisiana clients and is visible only if a pay type is subject to retirement  

6.109 
- Update description for "Taxable?" field for "E" from "Election Worker" to "Election/Firefighter Worker".
- Added "Election Worker Salary Threshold" field. This field will only be visible if the "Taxable?" field is set to "E". The value will default to what was configured in the "Election Worker Salary Threshold" field on Page 4 of the Payroll System File.

6.108 - New group box and radio buttons for COVID-19 Qualified Sick Leave and Qualified Family Leave fields. This group box will only be visible if "No employer FICA match" is checked.  

6.103 - New check box called "Do not calculate rate automatically", which when checked, will not recalculate values of this pay type when the pay rate is changed in the salary tab of an employee.  

6.102 - New checkbox called "No Employer Fica match" added for Emergency FMLA(Family and Medical leave act) for COVID-19.  

6.100 - Added validation to prevent "Subject to Medicare" being unchecked and "Exempt from unemployment report" being checked at the same time    

Refer to bottom of page for changes prior to version 6.100

Introduction

Pay type codes can be used to define a wide variety of pay types. Examples include: regular pay, overtime pay, bonus pay, sick pay, etc.

Selections

Pay Type
Description
Active - check for active pay types
Abbreviation
Print/Display Order - determines the sequence that the pay type is printed on the employee’s check stub and on selected reports; also controls how the pay type is displayed on the employee’s Salary Account screen
Taxable - E (Election/Firefighter Worker); F (Federal); N (No Tax); S (Set tax rate specified); T (computed from tax tables)
Election Worker Salary Threshold - Only visible if "Taxable?" is set to "E". Pay types configured this way will not be subject to Federal, State, FICA, Medicare, Retirement, or Worker's Comp until this threshold is met for the Calendar Year. Once met, the entire YTD amount will be subject to Federal, State, and any configured taxes (based on the "Pay Type Subject to" field) and included on the check run that caused the amount to go over the threshold. Taxes will be withheld normally for the rest of the Calendar year after that.
Federal Percent
State Percent
Default Pay Rate
Default Pay Rate on New Records - If checked will set the pay rate with the default pay rate on the pay type when adding a new record in salary account tab in Enter/Edit Employee master.
Pay Type Subject to - Withholdings

FICA
Medicare
Retirement
Worker's Comp
Term Life
Local Tax

Earnings Type - This field is applicable only for Louisiana clients and is visible only if a pay type is subject to retirement. This is used when creating the 'Municipal employees retirement report/file". Possible values are B - Base, C - Court Salary, CS - Courts' Supplemental, MB - Marshals' Salary, MF - Marshals' Fees, MS - Marshals' Supplemental.

No employer FICA match - This checkbox is visible only if pay type subject to Fica is checked. When checked the employer portion of FICA is not calculated.

COVID-19 - Fields related to the federal 941 tax form. Only visible if "No employer FICA match" is selected.

Qualified Sick Leave
Qualified Family Leave

Pay type considered overtime Is Self Administered - option is visible if a W2 pay type "F" has been selected
Use Pay Schedule - A pay schedule will allow users to choose which pay periods of the month the pay type should apply to.
Pay Schedule - Box that allows users to select which pay period of the month to calculate the pay type for. There are 5 check boxes that correspond to the 5 pay periods on the Print Payroll Register/Prelist screen. This box is only visible if "Use pay schedule" is checked.

W2 Pay Type - https://ttlc.intuit.com/questions/1899457-what-do-the-letter-codes-in-box-12-of-my-w-2-mean

"S" is used as Supernumerary in SmartFusion and can either be used in a regular payroll run or as Special Compensation. If it is used in a regular payroll run it will create a labor history record and will not appear in the W-2 but will appear on the Supernumerary Report in W-2 Summarization. If an employee has a supernumerary pay type they are considered to be a supernumerary employee.

Is W2 correction
W2 note - visible when Box 14 is selected in W2 Pay Type; If blank then the pay type abbreviation will be used for Box14 description in the W2 and if that is also blank then "OTHER" will be used

Budget Prep Pay Type
Enter factor for computing pay rate - default of 1.0000 (accuracy to 4 decimal places)
Enter amount for shift differential
When this pay type is recorded, enter the leave code to reduce and increase:
When this pay type is recorded, enter the pay type to reduce:
When this pay type is recorded, enter the deduction to increase:
Incentive Pay - Incentive pay allows users to set up a pay type that is a percentage of the sum of other eligible pay types. This box contains the following fields:

Not eligible - Will not be included with other pay types when calculating incentive pay.
Eligible for incentive pay - Will be summed together with other eligible types to calculate incentive pay.
Incentive pay - Will be a percentage of the sum of all eligible incentive pay types.
Percentage - Only enabled if the Incentive pay radio button is selected. This field is to be entered as a percentage amount. For example, five percent should be entered as 5.0000.

Include this pay type when prorating leave accruals
Subject to 401k
Is supplemental salary
Include in budgeted salary and daily rate
Furlough pay type
Is special compensation type - does not apply to pay types with a W2 code
Subject to furlough
Furlough pay type
Include as hours worked - Visible only for North Carolina and South Carolina clients. When creating the 'SC Quarterly Wage Export File Format(CSV)' and 'NC Unemployment Export File Format(CSV)' under Quarterly Tax, it will pull hours worked ONLY for pay types that have this flag checked.
Exempt from unemployment report - applies when "Subject to Medicare" is selected
Do not create multiple salary accounts from temp pay
Do not calculate rate automatically - Does not set the pay rate on the pay type when pay rate changed on salary tab
Eligible to compute fringe ratio - Indicates that this pay type should be included when computing fringe ratios through the Reset/Zero Fringe Ratio screen.
RSD transaction code
Posting month
RSD pay type
EMMA

Default Account
Overtime Pay Type
Default Fund
Rate
Fixed Rate
Import all hours for this pay type
Do not calculate rate automatically - Does not set the pay rate on the pay type when pay rate changed on salary tab

References

QSEHRA
https://www.investopedia.com/terms/q/qsehra.asp
https://community.intuit.com/articles/1495855

Changes Prior to Version 6.100

6.96 - New checkbox has been added called "Eligible to compute fringe ratio" that will determine if the pay type should be included in the calculations when resetting fringe ratios though the Maintenance > Special Maintenance > Reset/Zero Fringe Ratios screen.  

6.94 - New incentive pay box with radio button fields for "Not eligible", "Eligible for incentive pay", and "Incentive pay" as well as a new 4-digit decimal input field for Percentage which will only be editable if the "Incentive pay" radio button is selected. Also, the "Pay type considered overtime", "Enter factor for computing pay rate", and "Enter amount for shift differential" will be disabled if the "Incentive pay" radio button is checked.
- New tool tips for the incentive pay fields as well as minor refactoring to existing tool tips.

6.90 - New setting called "Use pay schedule" as well as a pay schedule box that will be visible if "Use pay schedule" is checked. This box has 5 check boxes that correspond to the 5 pay periods that users can select in the Print Payroll Register/Prelist screen.
6.89 - Added option for Election Worker to Taxable drop-down  
6.80 - Increased decimal place for the "Enter factor for computing pay rate" field from 2 to 4
6.79 - A new checkbox was added next to W2 pay type for “Is W2 correction”
6.67 - Added options for "Income from Qualified Equity Grants Under Section 83(I))" and "Aggregate Deferrals Under Section 83(I) Elections as of the Close of the Calendar Year" in W2 Pay Types

6.41 - Added an option for "Permitted Benefits Under a Qualified Small Employer Health Reimbursement Arrangement" in W2 Pay Types; Also added an option to self-administer this program

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Introduction

Selections

References

Changes Prior to Version 6.100