Pay item exclusion examples

Alerts and notices

This article provides examples of situations in which you might need to exclude specific pay items (hours or accruable benefits) from the basis for calculation of a payroll item.

Note: Pay item exclusions can be used only in payroll items using calculation types Percent of gross pay or Hourly rate - Total hours.

Example 1: Union dues


In this example, your client needs to add a pay item for union dues.

The new Union dues pay item must calculate based only on hours that employees actually work (rather than on hours that the employees are paid), so hours from vacation or other paid time off must be excluded from the calculation. To do this, mark the checkbox in the Accruable Benefits column in the [All Pay Items] row.

Union dues

Example 2: IRA employer match


In this example, your client wants to match an employee's percent of gross pay for regular wages only.

The new IRA employer match payroll item or employer contribution item must calculate based only on regular hours, so overtime hours, double time hours, and accruable benefit hours must be excluded from the calculation. To do this, mark the checkboxes in the OT, DT, and Accruable Benefits columns in the [All Pay Items] row.

IRA employer