Earning Types: Implementation Activity

In the following implementation activity, you will learn how to define new earning types in addition to the predefined set of earning types in MYOB Advanced.

Story

Suppose that in addition to the predefined earning types for regular work hours, overtime, public holidays, and vacations, the SweetLife company is going to use earning type codes for bonuses, double time, personal time, and tips. Also, the predefined code for vacations will be used to accrue paid time off, so its default settings need to be updated correspondingly. Acting as a system administrator, you need to create and define the needed earning type codes.

Configuration Overview

In the U100 Payroll snapshot, for the purposes of this activity, the 69500 account of the Expense type has been created on the Chart of Accounts (GL202500) form.

Process Overview

You create the needed earning type codes by using the Earning Type Codes (PR102000) form.

System Preparation

Before you start creating earning type codes, you should launch the MYOB Advanced website and sign in as a system administrator by using the following credentials:

  • Username: gibbs
  • Password: 123

As a prerequisite activity, in the company to which you are signed in, be sure you have completed the Taxes: Implementation Activity.

As a prerequisite activity, in the company to which you are signed in, be sure you have performed the activities in the preceding lessons of this part of the course.

Step 1: Creating an Earning Type Code for Bonuses

To create an earning type code for bonuses, do the following:

  1. Open the Earning Type Codes (PR102000) form.
  2. On the form toolbar, click Add New Record.
  3. In the Summary area of the form, specify the following settings:
    • Code: BN
    • Description: Bonus
    • Earning Type Category: Amount-Based
    • Active: Selected
    • Contributes to WCC Calculation: Selected
    • Accrue Time Off: Selected
  4. On the US Tax and Reporting tab, specify the following settings:
    • Wage Type: SUPPLEMENTAL
    • Reporting Type: NORMAL
    • Subject to Taxes: Per Tax Engine
  5. On the GL Accounts tab, in the Earnings Account box, specify 69500.
  6. On the form toolbar, click Save.

Step 2: Creating an Earning Type Code for Double Time

To create an earning type code for double time, do the following by using the Earning Type Codes (PR102000) form:

  1. On the form toolbar, click Add New Record.
  2. In the Summary area of the form, specify the following settings:
    • Code: DT
    • Description: Double Time
    • Earning Type Category: Overtime
    • Multiplier: 2.00
    • Regular Time Type Code: RG
  3. Review the following settings in the Summary area that the system inserted by default:
    • Active: Selected
    • Contributes to WCC Calculation: Selected
    • Accrue Time Off: Selected
  4. Review the following settings on the US Tax and Reporting tab that the system inserted by default:
    • Wage Type: REGULAR
    • Reporting Type: NORMAL
    • Subject to Taxes: Per Tax Engine
  5. On the GL Accounts tab, in the Earnings Account box, specify 69500.
  6. On the form toolbar, click Save.

Step 3: Creating an Earning Type Code for Personal Time

To create an earning type code for personal time, do the following:

  1. Open the Earning Type Codes (PR102000) form.
  2. On the form toolbar, click Add New Record.
  3. In the Summary area of the form, specify the following settings:
    • Code: PT
    • Description: Personal Time
    • Earning Type Category: Time Off
    • Regular Time Type Code: RG
  4. Review the following settings in the Summary area that the system inserted by default:
    • Active: Selected
    • Contributes to WCC Calculation: Selected
    • Accrue Time Off: Selected
  5. Review the following settings on the US Tax and Reporting tab that the system inserted by default:
    • Wage Type: REGULAR
    • Reporting Type: NORMAL
    • Subject to Taxes: Per Tax Engine
  6. On the GL Accounts tab, in the Earnings Account box, specify 69500.
  7. On the form toolbar, click Save.

Step 4: Creating an Earning Type Code for Tips

To create an earning type code for tips, do the following:

  1. Open the Earning Type Codes (PR102000) form.
  2. On the form toolbar, click Add New Record.
  3. In the Summary area of the form, specify the following settings:
    • Code: TP
    • Description: Tips
  4. Review the following settings in the Summary area that the system inserted by default:
    • Earning Type Category: Wage
    • Active: Selected
    • Contributes to WCC Calculation: Selected
    • Accrue Time Off: Selected
  5. Review the following settings on the US Tax and Reporting tab that the system inserted by default:
    • Wage Type: TIPS
    • Reporting Type: NORMAL
    • Subject to Taxes: Per Tax Engine
  6. On the GL Accounts tab, in the Earnings Account box, specify 69500.
  7. On the form toolbar, click Save.

Step 5: Updating the Predefined Earning Type Codes

To update the settings of the predefined earning type codes, do the following:

  1. Open the Earning Type Codes (PR102000) form.
  2. For the RG earning type, do the following:
    1. On the GL Accounts tab, in the Earnings Account box, specify 69500.
    2. On the form toolbar, click Save.
  3. For the OT earning type, do the following:
    1. In the Summary area, in the Regular Time Type Code box, select RG.
    2. On the GL Accounts tab, in the Earnings Account box, specify 69500.
    3. On the form toolbar, click Save.
  4. For the HL earning type, do the following:
    1. On the GL Accounts tab, in the Earnings Account box, specify 69500.
    2. On the form toolbar, click Save.
  5. For the VL earning type, do the following:
    1. In the Summary area, specify the following information:
      1. In the Earning Type Category box, select Time Off.
      2. In the Regular Time Type Code box, select RG.
    2. On the GL Accounts tab, in the Earnings Account box, specify 69500.
    3. On the form toolbar, click Save.