7shifts Payroll: Custom Earning Code Types

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

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.
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