Intro – Earnings #
Employee compensation comes from various types of earnings, including salary, regular wages, overtime, commission, bonuses, and paid time off. As payroll earnings are company expenses that post to the chart of accounts, the system requires that an expense account and a liability account related to each such earning must be explicitly defined. Moreover, user can add additional earning to include it into a pay run if needed.
Create a New Earning #
- Go to Payroll on the left sidebar, and select Earnings
- Click Add New button.
- On the Add New earning page, fill in the following fields
- Earning Name: Enter a unique earning name.
- Expense Account: Track employee’s earning as payroll expenses.
- Liability Account: System tracks unpaid pay run as company’s liability.
- Hourly Wage: Check this option if earning calculated based on the number of hours such as regular wage, overtime, vacation pay and sick pay.
- Click Save
