The reusable building blocks of every salary, earnings and deductions.
Overview
A Salary Component is a specific part of an employee's salary package. Each component can be configured as an earning or a deduction and customized to match your payroll policies. Components are combined inside a Salary Structure.
Salary Component overview
Create a salary component
- Go to Home → USA Payroll → Salary Component.
Salary Component workspace - Click Add Salary Component.
Salary Component list view - Fill in all the details and click Save.
New Salary Component form
Salary Component configuration options
Salary Component options reference
| Checkbox | Description |
|---|---|
| Depends on Payment Days | The component value adjusts based on the number of payable days in the payroll period. |
| Is Tax Applicable | The component is taxable and included in taxable income unless exempted. |
| Deduct Full Tax on Selected Payroll Date | Full tax is deducted on the selected payroll date, regardless of period spread. |
| Exempted from Tax | The full amount is excluded from taxable income without declarations or proof. |
| Round to the Nearest Integer | The component value is rounded to the nearest whole number. |
| Do Not Include in Total | The component is excluded from total earnings/deductions. |
| Do Not Include in Accounting Entries | The amount is excluded from accounting entries during Journal Entry creation. |
| Remove if Zero Valued | The component is hidden on the salary slip when its value is zero. |
| Disabled | The component is inactive and excluded from payroll processing. |
| Is this Insurance Component? | Flags the component as insurance related for classification/reporting. |
| Is this Pretax Component? | The component is deducted before tax is calculated. |
| Is this FICA Component? | The component is added to SS Taxable and MC Taxable (Social Security & Medicare). |
| Is this Income Tax Slab Component? | The component is auto calculated from the configured Income Tax Slab. |
| Federal Income Tax and Additional Withholdings | The component is included in Form 941 calculations. |
Tip: Use Is this FICA Component? for Social Security and Medicare, and Federal Income Tax and Additional Withholdings for federal withholding so they flow correctly into your quarterly Form 941.
Related Topics
Last updated 6 hours ago
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