Our team has been working hard the last quarter to bring you improvements throughout the system. The biggest changes you will see this week are enhancements to your employees' earnings.
With this release, you will also see some terms we have not used in the past:
Primary Earning - refers to how your employees are primarily paid. This may be by a regular hourly rate, salary, or a flat amount such as commission. These are view-able under Employees > select the employee > Employment in the left column.
Additional Earning - refers to a recurring set amount that your employees receive each pay period in addition to their primary earning. Additional earnings are automatically pulled into each payroll from your employees' profiles. These are view-able under Employees > select the employee > Employment in the left column.
One-Time Earning - refers to pay that your employees do not receive each week or at a set amount. For instance, this may be reimbursements that your employee receives occasionally. One-Time earnings are added to the payroll grid as needed.
Company Earning - refers to earnings that have been set-up for your company and can be added as a primary earning, additional earnings, or one-time earnings for your employees' pay. These are view-able under the Company tab in the top blue ribbon by selecting Earnings in the left column.
Earning Type - refers to the tax model that is applied to an earning and dictates how that earning will be taxed for employees. Contractors who receive 1099's do not have taxes withheld from their earnings, therefore, the earning type taxation rule will not be applied to them in the system.
Additional Earnings and One-Time Earnings:
Each business has a unique set of circumstances when it comes to paying their employees, whether that means having the occasional bonus or weekly reimbursements. Previously, these earnings would have been added directly onto the payroll grid under the Earnings column; however, you are now able to add Additional Earnings on each employee profile that will recur each pay period. These will automatically post to each payroll.
One-Time earnings have also received a face-lift! When adding a One-Time earning to your payroll, you will have the option of selecting an existing Company Earning (i.e. any earning that you previously used during payroll) or create a new earning. **Please note that One-Time Earnings cannot be the same as the Primary Earning listed on the employee profile.
We have simplified the earning set-up process so that when you create an earning that has an hourly rate you will no longer enter a flat amount as well. When you select an earning that has a flat amount you will no longer see hour and rate fields.
Drop-down menus used to select earnings will now list all active Company Earnings in alphabetical order of description followed by the earning type (such as "Trainer - Regular Hours"). In this example, the earning description as been listed as Trainer and the earning type is Regular Hours.
For more information on adding Additional Earnings to employees and adding One-Time Earnings, visit our Help Desk Articles:
Earning Types that have been removed:
Previously, you may have used the earning type “1099” to make payments to your contractors. Moving forward, 1099 will be replaced by Flat Amount earning type and your preferred description. If the worker is a contractor, the earning will not be taxed regardless of earning type. To learn more about the differences between employees and contractors, click here.
You will notice that the earning type "Commission" has also been removed; however, you will still be able to enter "Commission" as a description for the applicable earning type.
Please feel free to reach out to us at firstname.lastname@example.org if you have any questions.
Your CertiPay Online Team