[PR] How are Basis Codes used in PR Deductions/Liabilities

Basis Codes for Deductions and Liabilities

• Purpose: Basis codes determine which earnings, deductions, or liabilities are included when calculating a deduction or liability.

• EDL Type Options:

  • E – Earnings: Include this earnings code in the deduction or liability calculation.

  • D – Deduction: Include only pre-tax deductions; these are not included in the calculation basis.

  • L – Liability: Include a liability in the calculation if:

    • Calculation Category = Federal, State, Local, Insurance, or Employee

    • Method = Rate of Gross or Routine

• EDL Code:

  • Enter the specific earnings, deduction, or liability code.

  • Press F4 to see valid codes.

• Special Notes:

  • For liability distributions, an earnings code must have “Include in Liability Distributions” checked in PR Earnings Codes.

  • Additional earnings marked as True Earnings can be added with Subject Only checked, so they are used for distribution but not calculation.

  • Pre-tax deductions can only be added to deduction/liability codes with the proper Calculation Category and Method.

• Subject Only:

  • Check this box if the earnings should only count toward the subject amount (not used in the calculation).

  • Leave unchecked if earnings should be included in both the subject amount and the calculation.

• Typical Uses:

  • Deductions: For federal withholding, some earnings may be “subject only” so they appear on the W-2 but don’t affect withholding calculations.

  • Liabilities: Distribute a liability (like employer 401k match) to certain earnings without using them as the calculation basis:

    1. Add earnings (straight time, overtime, etc.) to the grid.

    2. Flag all earnings except 401k as Subject Only.

    3. This distributes the liability across regular earnings, not 401k earnings, and updates to Job Cost (JC).