Standard Earnings & Deductions

This article will guide you through the standard earnings and deductions available in GoCo when your account is provisioned with embedded payroll, limitations of these defaults, and how these items appear on employee paystubs.

Standard Earnings in GoCo

When you set up your account with embedded payroll, the following earnings types are automatically available for your use:

• Regular Salary Earnings – For salaried employees’ regular pay.
• Regular Hourly Earnings – For hourly employees’ regular pay.
• Contractor Pay (1099) (Non-Taxable) – For contractor payments.
• Bonus – For discretionary payments beyond regular wages.
• Cash Tips – For reported cash tips earned by employees.
• Commission – For payments based on sales or performance.
• Correction Payment – For adjustments to previously paid wages.
• Paycheck Tips – Tips received through payroll.
• Severance – For termination pay.
• Reimbursement (Non-Taxable) – For non-taxable expense reimbursements.
• Holiday Time Off – For holiday hours.
• Time Off Buckets – Includes both standalone time-off (e.g., Vacation Time Off) and payout options (e.g., Vacation Payout).

These earnings types are integrated directly, so no extra configuration is needed. They’re automatically treated as taxable where applicable, making setup seamless for your payroll needs.

Standard Deductions in GoCo

GoCo offers a variety of pre-configured deductions, which are also managed through embedded payroll:

• Natively Hosted Benefit Deductions – Powered by GoCo’s Benefits Administration, covers benefits such as health and dental. 
• Child Support – For court-ordered child support deductions.
• Retirement Contributions – Available plans include:
  • 401(k) and Roth 401(k)
  • SIMPLE IRA
  • 403(b) and Roth 403(b)
  • SEP-IRA
• Retirement Loan Repayments – Available for eligible plans including:
  • 401(k) Loan Repayment and Roth 401(k) Loan Repayment
  • 403(b) Loan Repayment and Roth 403(b) Loan Repayment
  • IRA Loan Repayment

These deductions allow for easy setup and compliance with various tax and benefit requirements.

Limitations of Standard Earnings & Deductions

While GoCo provides a comprehensive set of standard earnings and deductions, there are limitations:

• Custom Earnings – Any earning type not listed above must be created as a custom earning. Please note that all custom earnings are treated as taxable and will appear in payroll reports + paystubs as a flat amount only)
• Custom Deductions – Custom deductions can be configured as either pre-tax or post-tax. However, only retirement codes and spending account codes are capped at the federal maximum. In addition, we only support goal amounts for retirement loans and garnishments.
• Contractors - Contractors cannot have deductions and under earnings you can only utilize contractor pay, bonus, and reimbursements.

Paystub Appearance

Standard earnings and deductions are clearly itemized on each employee's paystub:

• Earnings Section – Lists all earned wages, bonuses, tips, and any other standard or custom earnings. 
• Deductions Section – Displays both standard and custom deductions, including benefit deductions, retirement contributions, and loan repayments. 

Example of a Paystub (W-2 Employee)

Example of a Paystub (Contractor)

If you need further assistance setting up your payroll, our team at support@goco.io is here to help. 💚