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Special Pay
The system allows you to set up special pay requirements that are not driven by a Timesheet. Examples of special pay may include: third party sick pay or an ongoing reimbursement to staff for a taxable fringe benefit. You will define whether or not the Special Pay is taxable for Social Security, Medicare, Federal, State and Local tax computations as well as if the Special Pay has any effect on eligible wages for Unemployment, Worker’s Comp or the Retirement Report supplement. In addition, you will also define if the Special Pay gets added to the employee’s net pay, or as in the case of third party sick pay, the employee has already received the funds and is now only having the appropriate taxes withheld.
Note: Special Pay Code 1000 is reserved to record the employer's share of health insurance coverage.
Code: Enter a numeric code up to 9-digits.
Description: Enter a description for the Special Pay.
A/%: Enter an “A” if the Special Pay is going to be a set dollar amount. Enter a “%” if the Special Pay is going to be a percentage of gross wages.
Net: Click on this box if the amount of the Special Pay will be added to the total pay and net pay. If this box is not checked, the amount identified for the Special Pay will be used in calculating the appropriate taxes, however, the Special Pay amount will not be added to the paycheck.
SS: Click on this box if the Special Pay is taxable for Social Security computations.
Med: Click on this box if the Special Pay is taxable for Medicare computations.
Fed: Click on this box if the Special Pay is taxable for Federal Income Tax computations.
State: Click on this box if the Special Pay is taxable for State Income Tax computations.
Local: Click on this box if the Special Pay is taxable for Local Tax computations.
Unemp: Click on this box if the Special Pay is to be included in Unemployment Insurance eligible wages.
WorkerCom: Click on this box if the Special Pay is to be included in the Worker’s Comp Insurance calculation.
Retire: Click on this box if the Special Pay is to be included in Retirement eligible wages on the Retirement Report supplement.
Active: Enter True if this Special Pay Code may be used. If it is no longer to be used, enter False.
NOTE: Special Pay is typically not used for 3rd party sick pay.
Note: Special Pay Code 1000 is reserved to record the employer's share of health insurance coverage.
Code: Enter a numeric code up to 9-digits.
Description: Enter a description for the Special Pay.
A/%: Enter an “A” if the Special Pay is going to be a set dollar amount. Enter a “%” if the Special Pay is going to be a percentage of gross wages.
Net: Click on this box if the amount of the Special Pay will be added to the total pay and net pay. If this box is not checked, the amount identified for the Special Pay will be used in calculating the appropriate taxes, however, the Special Pay amount will not be added to the paycheck.
SS: Click on this box if the Special Pay is taxable for Social Security computations.
Med: Click on this box if the Special Pay is taxable for Medicare computations.
Fed: Click on this box if the Special Pay is taxable for Federal Income Tax computations.
State: Click on this box if the Special Pay is taxable for State Income Tax computations.
Local: Click on this box if the Special Pay is taxable for Local Tax computations.
Unemp: Click on this box if the Special Pay is to be included in Unemployment Insurance eligible wages.
WorkerCom: Click on this box if the Special Pay is to be included in the Worker’s Comp Insurance calculation.
Retire: Click on this box if the Special Pay is to be included in Retirement eligible wages on the Retirement Report supplement.
Active: Enter True if this Special Pay Code may be used. If it is no longer to be used, enter False.
NOTE: Special Pay is typically not used for 3rd party sick pay.
