Setting Up Adjustment Codes

This article explains how to define Adjustment Codes and Statutory Deductions. These settings help you track additional payments or deductions applied to worker pay data for reporting and payroll purposes.

What Are Adjustment Codes?

Adjustment Codes are custom labels used to categorize payroll entries for allowances and deductions that can be assigned to net pay adjustments made to worker pay. These codes help organize and report on different types of adjustments, such as bonus, loan, per diem, commission, reimbursement, allowances, and more.

Using Adjustment Codes allows you to generate more detailed payroll reports and maintain better transparency in pay adjustments.

Note that by default, Net Pay is not enabled in the payroll settings. To display and apply Adjustment Codes, you must first enable the "Net Pay" option in the Payroll configuration.

Set Up

Step 1: Go to the Fareclock Admin Console and go to Administration. Under ‘Administration’ find and click ‘Payroll’.

Step 2: Click the ‘Settings’ tab above.

Step 3: Go to the ‘Adjustment Codes’ page.

Step 4: To create a new adjustment code, click on the "+ New Net Pay Adjustment Code" button.

Step 5: Enter the code name and optional Priority. Enable the global non-tax exemption ceiling if applicable, mark the code as De Minimis for reporting, and set the code-specific Non-Tax Exemption Ceiling. Any excess over the applicable ceiling will be taxed.