7shifts Payroll: Custom Earning Code Types

Updated July 12, 2024 15:21

To configure your custom earning codes:

Login as an Admin.
Head to Payroll > Settings > General tab.
Click + Add Custom Earning:

The following provides a reference of earning codes that are supported by 7shifts Payroll. Below, are definitions for various types of earnings and hours worked by hourly and non-hourly Employees.

Hourly
Weighted Overtime	Any weighted overtime pay that a piecework employee makes. Piece overtime is taxed like regular earnings.
Double Overtime	Regular hours worked by hourly employees, excluding overtime.
Hourly	Hours under the Employer's control, excluding rest and recovery periods, where no work is done or work can’t be completed due to factors beyond an employee's control. Earnings during non-productive hours are taxed like regular earnings.
Non-productive	Hours worked by an Employee that count as overtime. Earnings from overtime are taxed like regular earnings.
Overtime	Hours worked by an Employee on a holiday. Earnings from paid holidays are taxed like regular earnings.
Paid Holiday	Work where Employees are paid a fixed piece rate for each unit produced. Piece earnings are taxed like regular earnings.
Piece	Work where Employees are paid a fixed piece rate for each unit produced. Piece earnings are taxed like regular earnings.
Piece Adjustment	Additional contributions made by an employer to ensure a piece-rate worker meets the minimum wage requirement. Piece adjustments are taxed like regular earnings and require a piece earning.
Paid Time Off	Any hours worked by an employee that qualify as double overtime. Earnings from double overtime are taxed in the same way as regular earnings.
Rest and Recovery	Uninterrupted breaks where the Employee can’t be required to work but must be compensated for. Earnings during rest and recovery are taxed like regular earnings.
Salaried	Hours worked by salaried Employees. Although hours may not be tracked, it's recommended to include 40 hours per week.
Sick	Paid time off during which an Employee was sick. Sick earnings are taxed like regular earnings.
Tip Credit Adjustment	Additional contributions made by an Employer to ensure a tipped employee meets the minimum wage requirement. Tip credit adjustments are taxed like regular earnings.
Weighted Double Overtime	Any weighted double overtime pay that a piecework employee makes. Piece double overtime is taxed like regular earnings and requires a piece earning.

Non-Hourly
2% Shareholder Benefits	Health and accident insurance premiums are paid on behalf of a 2% shareholder. These benefits are taxed differently than regular earnings and are reported in Box 14 of the W-2.
2% Shareholder HSA	Company HSA contributions are paid to a 2% shareholder. HSA earnings for 2% shareholders are taxed differently than regular earnings and are reported in Box 14 of the W-2.
Bonus	Payment made as a bonus to an Employee. Bonus earnings are taxed differently than regular earnings.
Cash Tips	Tips received in cash by an Employee. Cash tips are taxed normally but are not included in the Employee’s net pay because they’ve already received them. They are not taken into account with any 7shifts tip calculations.
Commission	Payment to an Employee based on commission. Commission earnings are taxed differently than regular earnings.
Group Term Life	The imputed cost of coverage above $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.
Non-hourly Regular	Income not associated with hours, such as paid leave. This is taxes as regular earnings.
Other Imputed	Income imputed from sources other than group term life insurance. These earnings will be taxed normally. Some examples include the use of a company car or a gym membership.
Paycheck Tips	Tips that an Employee has not yet received. They are taxed normally and will also be included in the employee net pay because they have not already received them. They are not taken into account with any 7shifts tip pools and calculations.
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.