Create a salary component

A salary component is one earning or one deduction, such as base pay or a tax. You use it later on a salary structure. Attendance and clocking do not create a component, and they do not create pay.

1. Open Salary Component under Payroll. The list is titled Salary Components.
2. Click New Salary Component.
3. Under Details, enter Component Name. Set Type to Earning or Deduction. Set Calculation to Fixed, Formula, or Percentage. Calculation starts as Fixed.
4. Leave Active on. Turn on Tax Applicable when this amount is taxed.
5. If Calculation is Formula or Percentage, enter Formula under Formula.
6. Click Create Salary Component.

What you should see

The list shows Name, Type, Calculation, and Active. Search reads “Search components...”. An empty list says “Configure earnings and deductions used in payroll.” After you save, the button changes from Create Salary Component to Save.

If something looks wrong

Create Salary Component names Component Name or Type when those fields are empty. Enter them and try again.

The component is missing later when you build a structure. It is not on the list until this save succeeds. Create it here, then open Salary Structure and choose it on a row.