Create and manage salary components

Supported component types

1. 1Regular income for recurring fixed earnings such as basic salary.
2. 2Variable income for run-time usage values.
3. 3Time-tracking income for approved synced hours.
4. 4Regular deductible values for payslip deductions, tax reliefs, or both.
5. 5Percentage components calculated from selected source components.

Create a regular component

1. 1Open Payroll > Salary Components.
2. 2Choose Regular as the component type.
3. 3Choose Income if the component increases gross pay, or Deductible if it reduces pay or records a relief.
4. 4Enter the component name.
5. 5Complete the tax, pension, display route, and scope fields that apply.
6. 6Save and confirm the component appears in the correct section.

Create a percentage component

Percentage components calculate their value from one or more existing source components. Use them for items such as pension, deductions, allowances, or policy-driven formulas that should update automatically during payroll.

1. 1Open Payroll > Salary Components and choose Create Salary Component.
2. 2Set Component Type to Percentage.
3. 3Set Salary Type to Income when the calculated value should add to earnings, or Deductible when it should reduce net pay or appear as a deduction.
4. 4Enter a clear component name, such as Employee Pension, Employer Pension, or Housing Percentage Allowance.
5. 5In Percentage Formula, enter the percentage rate that should be applied during payroll.
6. 6Select the source component or components that the percentage should be calculated from. For example, choose Basic Salary if the formula is a percentage of basic pay.
7. 7Use location or department scope only when the component should apply to a limited staff group. Leave the scope broad when it should be available to all employees.
8. 8Review the Current Summary panel before saving, especially the structure, selected sources, and where the component applies.
9. 9Save the component and confirm it appears in the correct Income or Deductible section.

Assign and test the component

1. 1Open HR > Employees and select the employee who should receive the component.
2. 2Use the Income tab for income components, or the Reliefs or Deductibles tab for deductible components.
3. 3Add the component to the employee where employee-level assignment is required.
4. 4Run or preview payroll and confirm the calculated amount matches the expected percentage of the selected source components.

Review before payroll

1. 1Confirm source components exist before creating percentage components.
2. 2Confirm each source component is assigned to the employees who need the percentage calculation.
3. 3Review taxable and pensionable flags with the payroll policy owner.
4. 4Check whether the component should be taxable, pensionable, shown on payslips, or included in reports before using it in a live payroll run.
5. 5Avoid duplicate component names with different spacing or capitalization.