How to Account for Employee Earning with Different Tax Implications

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 in 7shifts Payroll. This allows 7shifts Payroll to create customized earning categories for different types of pay, including bonuses, non-hourly work, activities, or reimbursements.

What to do

1. Log into the 7shifts web app as an Admin.
2. Navigate to Payroll > Settings.
3. Select + Custom Earning under the General tab.
4. Enter a custom name for the earnings code and map the custom name to a standard earning code.

If a custom earning category is no longer needed, you can deactivate the category and create a new earnings code instead. Each custom earning code is subject to different tax rules based on the mapping selected.