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Premium and Differentials: Corresponding Earning Codes

Because premiums are paid in addition to regular earnings for the same time worked the Earning Code for the premium should not accrue any additional hours or units in the case of vacation, EI hours, and other unit base accumulators.

In summary:

  • EI Hours should be exempt for the earnings.

  • Premium earnings should be recorded as taxable income on the tax slips.

  • Accumulators for units should be disabled.

Enable the EI Hours exemption

The Earning Code for the premium earnings are exempt for EI Hours (because the EI hours would already have been recorded by the eligible earnings for the premium).

  1. From the Earning Data tab enable the EI Hours exemption.

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Configure the T-Slips for income

The T-Slips for the Earning Code are recorded as taxable income, using the appropriate income boxes of the different tax slips.

  1. From the T-Slips tab:

    • Select the 14 - Income T4 Box.

    • Select the A - Employment income before srce ded RL1 Box

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Disable unit-based accumulators

Accumulators that are units-based on the Earning Code should be disabled to avoid duplicating units that have been recorded on the eligible earnings.

  1. From the Accumulators tab:

    • Disable (A11) Vac Hours (Units).

    • Disable (A12) Service Hours (Units).

    • Disable any other applicable units accumulators.

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What this accomplishes

Now when premium earnings are generated on this Earning Code the time will not be duplicated for EI Hours, Vacation Hours, and Service Hours, and the earnings will be recorded as taxable income on the tax slips at year-end.

J
Jack is the author of this solution article.

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