Salary Component
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.