Wage Types

In SAP, wage type is frequently abbreviated as WT.
Each wage type contains three value fields: RTE, NUM and AMT.
- The RTE specifies hourly rate.
- NUM specifies the number of units, e.g. 3 hours of overtime.
- AMT specifies the amount. It is obtained by multiplying RTE with NUM. For basic pay wage types such as salary, the amount is stored in AMT field.
If you are from PeopleSoft background, I would like to say that a wage type can represent an earnings code or deduction code or a tax code.
Cummulative wage types are indicated with a slash '/' in front of them. In PeopleSoft terminology, these are accumulators. e.g. /101 = gross pay etc. These are also known as "Technical wage types".
Typically customer created wage types are in the 9.. series, example: They are created in the range 9000-9999. Similarly cummulative wage types will be in the range /900 - /999.
There are 2 types of wage types: Primary and Secondary.
- Primary wage types are directly entered by the user in the system or generated by the system based on time data. example: say wage type 1300 for bonus or wage type 5300 for overtime or wage type 6210 for 401(k) pre-tax deduction.
- Secondary wage types are created by the payroll program during payroll run. All cummulative wage types are of secondary type & indicated by a / in the front of wage type.
If you are from PeopleSoft background, I would like to say that a wage type can represent an earnings code or deduction code or a tax code.