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Pay Code

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Configuration > ACA Setup > Pay Code

Most ACA reporting is based on number of hours worked. In this section, you will define the pay codes
that represent hours that an employee works. These are the pay codes that will be included in the
calculation of reported hours worked.

Click on “Add new record” at top left to add a pay code. You may also edits and delete pay code
records.

By checking “Exclude from Hours,” the system will exclude the hours from transactions for the Pay
Code when summing hours in all calculations.

Employee hours for the purpose of the ACA are defined as follows: (1) each hour for which an
employee is paid, or entitled to payment, for the performance of duties for the employer; and (2) each
hour for which an employee is paid, or entitled to payment by the employer on account of a period of
time during which no duties are performed due to vacation, holiday, illness, incapacity (including
disability), layoff, jury duty, military duty or leave of absence. Not all Pay Code IDs are necessarily
represented. Commissions, bonuses and profit sharing are examples of pay codes that are not used for
tracking hours; they are usually entered as dollars. However, if you are using a W2 Safe Harbor you will
need to include these for determining gross Income. If you are importing these types of transaction
you would put in a zero for the hours of service.
Avoid double-counting hours. An example is an employer that pays an hourly base rate and a
shift premium. If these are separated into two pay codes, you only want to include one, usually the base
hour pay code. Including both could double-count the hours.
The transaction import process will actually auto-create pay codes that are found in the import
file. In practice you may find that you rarely need to manually enter a pay code apart from the import
process.

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