Toast Payroll: Get Started With Earning Codes

In this Article:

• Earning Code Basics
• Key Aspects of Earning Codes
• Set up a New Earning Code
• Additional Resources

Earning Code Basics

Earning codes are used to identify the different types of wages on a pay stub. They are specific to each restaurant in their Toast Payroll database. They are established in the system and used to pay employees, but more than that they are relied upon by system logic/functions within and outside of payroll.  

Common examples of earning codes include regular, salary, overtime, tips, commission, and bonus.

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Key Aspects of Earning Codes

• Hourly rate vs. Flat rate: If an earning is checked as an hourly rate, it will multiply itself by the number of hours an employee has. If it is checked as a flat rate, it will not be affected by the number of hours an employee has.
• Default earnings: Recurring earnings in which the rate should automatically update when the default rate increases
• Non-default earnings: Typically not recurring and not tied to pay raise
• Taxable: Earnings which are part of your taxable income, subject to any exemptions/deductions allowed in that tax year
• Not Taxable: Earnings that are not part of your taxable income, not subject to any exemptions/deductions allowed in that tax year
• Salary: Earnings paid out via a flat amount (i.e. 300)
• Hourly: Earnings calculated based on multiplying hours times an hourly rate
• Cash: Earnings paid out on payroll that increase your net pay
• Non Cash: Earnings recorded on payroll that do not increase your net pay or cash flow
• Tip Makeup Eligibility: If an employee makes less than minimum wage for hours worked and tips do not cover the tip credit, then is applied to cover the difference
• Overtime Eligibility: Earnings that are included in the calculation of overtime
• Deferred Comp: Refers to an arrangement in which a portion of the earnings are paid out at a later date (this is related to 401(k) contributions)

Set Up a New Earning Code

In order to generate a new earning code, fill out and send it to us via the blue chat dot in the lower-right corner of any Toast Payroll page. If you have questions about how to fill out this form, refer to the section above or include your questions in correspondence with the Customer Care team. Once the Care team has set up the new code, you'll be able to use it immediately.

Note: Currently, Toast Payroll doesn't support setting a maximum amount for earning codes. If you have a specific earning that needs to stop once a certain limit is reached, you'll need to track and monitor this manually.

Additional Resources

This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for advice.