When paying employees through timecards, you need to define the various ways that employees can be compensated, using Timecard Entry Codes. These codes will be used with Payroll Departments and Employee records, which in turn are used to determine defaults on new Timecards. Entry codes can also be added on the fly when editing a timecard. The list of Timecard entry codes can be opened from the top Payroll menu -> Timecard Entry Codes.

Create a code for each way that you would pay employees, with default hours, amounts, accounting and tax consideration.

Code – The unique alpha-numeric value to identify this entry code, up to 20 characters.
Description – A text label for the code, which will be used for entering and printing timecards.
Pay Type – This selection categorizes how employees are paid, and determines the tax rules applied to this entry code. You can create multiple entry codes that use the same Pay Type, with different default amounts.

  • Salary – All withholdings charged
  • Regular – All withholdings charged
  • Overtime – No vacation pay in Alberta and Manitoba
  • Commission – All withholdings charged however the annual amount goes in box 42 on T4
  • Vacation – Vacation pay release
  • Advance – No vacation pay
  • Sick – All withholdings charged
  • Premium – All withholdings charged
  • Other – No vacation pay
  • Bonus or retroactive pay increase – When added to a timecard along with regular pay, the tax on the bonus is annualized.
  • Statutory Holiday – All withholdings charged
  • Blank Pay Type – Not select a Pay Type will all you to define which of the tax withholding rules are applied (see note below).

Rules – Which withholdings are applied to a timecard entry code, for Tax, Canada Pension Plan (CPP), Employment Insurance (EI), Workers Compensation Board (WCB) and Vacation. These settings are determined specifically from the selected Pay Type, and cannot be edited unless you leave the Pay Type field blank. If the checkbox displays a square instead of a checkmark or blank, this means that the withholding is dependent on the employee’s province.


Each of these fields are used as default values for Timecards and Payroll Departments, and can be edited in those areas when necessary.

Hours – Number of hours for the pay period.
Rate – Hourly rate of pay.
Amount – Total amount for the pay period. This will override any defaults for both Hours and Rate values, thus this should be used only when not using hours and rates.
Account – The expense General Ledger account where the pay will be posted. If you leave this field blank, then the default account for generated timecards will be the Salaries & Wages account from the employees Payroll Department.

Video Instruction

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