How to Account for Employee Earning with Different Tax Implications

Updated January 06, 2025 16:13

Question

Can I account for additional earning types with specific tax implications in 7shifts Payroll, such as bonuses or reimbursements?

Answer

Yes, you can account for various types of earnings with unique tax implications by using the Custom Earnings Code feature. This allows you to create customized earning categories for different types of pay, including bonuses, non-hourly work, activities, or reimbursements.

Steps to Add Custom Earnings Codes

Log into the 7shifts web app as an Admin user.
Navigate to Payroll > Settings.
Under the General tab, select + Custom Earning.

⚠️ Important Notes:

You can create a custom name for the earnings code and map it to a standard earning code. Each code is subject to different tax rules.
Once created, Custom Earnings Categories cannot be edited or deleted to maintain data integrity and accurate historical reporting.
If a category is no longer needed, you can deactivate it and create a new one instead.

Learn more about custom earnings codes here.