Example: Determining the Difference between Earnings and Pre-Deduction Earnings

To determine the difference between an earning and a pre-deduction earning, employee 1 has the following salary and deductions and earnings set up:

Base Salary $500.00

D/E:

• Earning B1 100.00
• Earning B2  10.00
• Earning B3  10%

When Compute PR is executed, the following calculations are applied:

• Gross Pay: $660.00
• D/E 1:  100.00
• D/E 2:  10.00
• D/E 3:  50.00 (10% of 500.00)

Employee 2 has the following setup:

• Base Salary  $500.00
• D/E:
• Pre-Deduct PD1 100.00
• Earning B2   10.00
• Earning B3   10%

When Compute PR is executed, the following calculations are applied:

• Gross Pay: $670.00
• D/E 1:  100.00
• D/E 2:  10.00
• D/E 3:  60.00 (10% of $500. + 100.)