Creating Minimum Wage Makeup Earning Codes
Create a Minimum Wage Makeup earning code at Company Settings > Payroll Setup > Earning Codes.
Add the earning as a "regular" type earning, with no hours.
Enter the required information, such as Code and Name, and in the Scheduled Default Values section, do the following:
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Select Minimum Wage Makeup for the Default Amount. This displays the Default Amount Minimum Wage fields.
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Select the state and city from the Default Amount Minimum Wage drop-down list. Selection of the state/city automatically adds the Minimum Wage rate.
Note: The cities with minimum wage rates will appear in the list using the format State: City (for example, California: San Francisco or if there is no city, State: State). The cities are listed alphabetically by State: City name at the end of the Minimum Wage drop-down list. -
Select the correct option for the appropriate Minimum Wage for your client.
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Choose an Earnings List to base the calculation on.
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Choose a Minimum or Maximum value (optional).
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Select a Frequency (optional).
Adding Earnings to Employee’s Scheduled Earning
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Go to Team > My Team > Employee Information.
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Select the appropriate employee.
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In the Earnings section on the Payroll page, select New Earning.
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Select the correct Minimum Wage Makeup earning code, and enter all required data such as the Begin Date, Earnings, and Frequency.
Calculating the Makeup Amount
The Minimum Wage Makeup amount is calculated when the employee’s base rate on the pay statement is less than the state/city’s Minimum Wage rate. When the hours/amount are entered onto the paycheck, the minimum wage makeup will happen automatically, based on the earning code attached to the employee. If the earning is not set up on the employee, it won't calculate.
If the employee does not work in the state that is specified on the earning code, it will not calculate the minimum wage.
