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This module allows the user to add/edit the Pay Codes. Each Pay Code is defined as a certain type: 'E'arnings, 'T'axable Benefits, 'S'tatutory Deductions, 'D'eductions, 'B'enefits. The Pay Codes control much of what happens in the system and care should be taken when setting them up. There is no limit to the number of pay codes that can be defined. Suggestion: When first setting up your pay codes you should estimate how many of each type you may require and then group the types into specific numeric ranges. For example: Earnings: 1-499, Deductions: 500-899, Benefits: 900-999.



The following fields must be completed:

Code: Enter a unique number not currently used.

Type: Enter the type of the pay code: E(arnings), T(axable) Benefits, S(tatutory) Deductions, D(eductions), B(enefits).

Description: Full description of the pay code.

Short Description: Used for lists and reports to conserve space. Maximum 5-digits.

Print on Statement: Check this if you want any transactions with the pay code to appear on the pay statements.

Statement Label: This is the description that will be printed on the pay statements as the full description is usually too wide for the forms and the short description is too cryptic.

Rate Multiplier: When a time transaction is entered the calculation done is: Hours X Rate X Pay Code's Rate Multiplier = Amount. Pay codes used for Straight time should to be set to '1', Over time codes set to '1.5' and Double time codes should be set to '2'.

Hour Multiplier: Used when benefit/deduction calculations are to be based on a different hourly total then the hours entered for pay calculations. Example: Some shifts are set up where the employee works 32 hours but gets paid for 40 hours. The Pension and LTD benefits/deductions are to be calculated using 40 hours therefore the Hour Multiplier should be set to 1.25 (40.0 / 32.0).

Adjusting Entry Only: This flag is used for marking a transaction as an adjustment to year-to-date totals only. When a pay record is created the amount in the transaction will not be considered in the pay records calculations but will post to the employee's YTD totals (primarily used for vacation pay hours and earnings adjustments).

FIR Accumulator Number: Used for cross-referencing your pay codes with the accumulator codes used by the Forest Industrial Relations. (See the FIR Wage Survey report.)

Foreman Time Entry: If checked the pay code will be displayed in the Pay Code list in the Crew Time Entry program. The Foremen only need to see the pay codes they will use, not all codes.



The setup of the pay code flags is Extremely Important as these flags control the calculations used throughout the system. This area must be checked in detail to ensure the correct flags have been set.

Worked Hours: Indicates that the hours entered in a time transaction are to be considered as worked (ie; Straight time, Overtime, etc.). When a pay record is created the hours for transactions marked as worked are totalled and used in the benefit/deduction calculations (in conjunction with the Hours Multiplier described above). Some pay codes that would not have this option checked would be Stat Holiday, Floater, Vacation, etc..

Absentee: Indicates that time transaction hours are absentee hours ie; Sick, WCB, Long Term Disability, Late, Personal Time Off. See the Absenteeism or Hours Inquiry Reports.

Lost Time: Indicates that the time transaction hours are to be considered as Lost Time hours. Used for Injury, Safety and WCB reports.

Calculate Shift Amount: Indicates that the time transaction hours are to be used to calculate shift differential when you save the transactions in the Employee or CrewSheet time-entry programs.

Calculate Ticket Amount: Indicates that the time transaction hours are to be used to calculate ticket amounts when you save the transactions in the Employee or CrewSheet time-entry programs.

Is Floater: Indicates that this pay code is used for a Floating Holiday pay code. When the time is saved in the Employee or CrewSheet time-entry programs if a pay code with this flag is detected the programs will update the 'Last Floater Date' and 'Floaters Taken' fields on the employee's pay screen.

Not Pro-Rated: for the GL Journal Voucher report. When checked amounts for the pay code are not included in costing totals in the GL Journal. Typically used for Vacation Advance/Paid Early pay codes as they were costed out when they were first generated.

Union Dues Hours: if checked indicates that hours entered for time transactions will be used to calculate union dues based on working X hours within a given date range. See Union Dues Report/Journals Creation.

Can Bank Time: check if the hours/amount for the pay code can be be banked.

Pay Bank Time: check if the pay code is to be used for banked time payouts.

Pension Hours: used for all hours worked as per the IWA.

Pension Earnings: used in conjunction with the above.

E.I. Hours: used for all earnings-related hours. A notable exception would be when using the Vacation Hours Taken pay code. (ie; when 80 hours of vacation time is entered for an individual, those hours become insurable. If an ROE is produced then this pay period would show 80 hours of insurability, yet no earnings would be insurable).

E.I. Earnings: used for all earnings-related pay codes (vacation pay advances included).

C.P.P. Earnings: used for all earnings-related pay codes (vacation pay advances included).

Non-taxable Earnings: earnings which are non-taxable (ie; meal tickets, etc.).

T4A Earnings: used for any severance-related payments that are required to be reported on a T4A slip.

WCB Earnings: used for all earnings-related pay codes.

WCB Code: used for any WCB-related pay codes.

Vacation Pay Hours: used for computing the requisite hours for the annual vacation pay 'Regular Job Rate Method' calculation. This normally is included for all earnings-related and vacation time taken pay codes.

Vacation Pay Earnings: used for totalling earnings for the annual vacation pay 'Percentage of Wages Method' calculation. This is normally included in all earnings-related pay codes.

Vacation Pay Credit: used to indicate a vacation credit-type pay codes (ie; Sick, WCB).

Vacation Pay Early Payment: used to indicate that the amount is totalled as a vacation advance. By checking this flag the system will automatically decrease an employee's vacation-pay bank each time he is paid vacation pay.

Vacation Hours Taken: used to indicate that the hours are for vacation time taken.

Vac Rate Increase: if checked this flag tells the Batch and Manual Cheques programs to use the rate in a transaction as the vacation rate increase percentage and the transaction's amount (if any) is used to increase Vacation Pay Earnings.

Vacation Pay Bank: used to indicate that the amount in a transaction is to be posted to the employee's vacation pay bank.

Frequency Level: used to determine the frequency of any benefit or deduction code and is tied in with the pay period list. Each pay period has been set up with a frequency number attached to it (See Pay Periods). When a benefit/deduction code is set up as a '0', the payroll will try to take that benefit/deduction each time. When a code is set up as a '1', the payroll will only take that benefit/deduction code on the pay periods set up as '1'. The same applies to the setup '2'. Examples of a 0, 1, 2-type benefit/deduction code:

0 - To be taken every pay - ie, Lumber purchase, United Way, Safety Purchase, Computer.

1 - To be taken first pay of month - ie, Taxable Benefits, medical, life insurance portion of H&W.

2 - To be taken second pay of month - ie, Union Dues.

Deduction Priority used to determine the order of priority when processing deductions (ie; first Garnishees, then Union Dues, then employee purchases, etc..

Allow Partial Deductions: used to indicate that a partial deduction should be taken if employee has not earned enough to cover the full deduction.

Save In Missed Ddctns if Missed: used to indicate that a deduction that could not be taken should be saved in the Missed deductions file for submission on the next pay run.

Non-taxable Deductions: deductions reduces taxable earnings prior to income tax calculation (ie; Union dues).

Round-down Hours: this option is used to round-down hours. Originally set up to be used for reporting the LTD and Pension hours to the IWA. Their original system could not accept decimal places therefore partial hours could not be submitted. By using this option, the system calculates by rounding down, for example any employee having 80.5 hours would be calculated with 80 hours only. Note: As of Jan 2000 this should not be used as they have updated their systems.

The Priorities button displays a list of the deductions where you can set the order in which they will be taken. The top deduction will be taken first, the second next and so forth. Drag the rows up or down or highlight a deduction and use the up/down buttons to the right of the list. When the list is in the desired order click the Accept button.



When the GL Journal Voucher program is run it will use the account 'as entered' in any 'E'arnings type transactions. 'B'enefit & 'D'eduction type transactions will find the distribution account by looking in the pay code's account distributions records. If there is no distribution record defined then the account number in the transaction will be used. See the GL Journal Voucher for further details.

When entering a transaction in the time-entry programs (employee, crew-sheet or journals) each transaction must include a valid account. When an employee's ID is entered the system will find the employee's home job and will use the job's labour account as the default account. The account can be changed in the time-entry programs if neccessary. For Benefit and Deduction pay codes specific cost distribution accounts need to be defined as shown in the above screen. A pay code may have more than one account attached to it if you have defined more than 1 division.

The Account Distribution record consists of the following fields:

Division: number to identify the specific division.

Account Number: pressing F2 code will display the accounts lookup window. The account number is divided into different segments representing the various sub-categories within the GL. To maintain the accounts use the Accounts Maintenance.

Debit/Credit: Check the appropriate column to indicate that the amount is to be totalled as a Credit or Debit. Typically Earnings will be Debits and Benefits & Deductions will be Credits.

Account Description: (display only) displays the account name according to each segment listed (ie; Maintenance Labour, Sawmill, Mill 'A').


There are three reports available for printing different aspects of the pay code definitions: General Information, Flag Settings and Accounts.




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