Pay components

To ensure you pay your employees correctly, you need to create and manage your company’s earning and deduction pay components (transactions).

You can either set up your earnings and deductions before you start processing a pay run, or you can create them while processing the pay run.

Sage One Payroll has prepopulated pay components available, however, if you have to create your own pay component, you can do so.

To create a pay component, click on Maintenance…Pay Components. The following screen will display:

Select the Company in which you want to create/view a pay component. You can select between Earnings, Deductions, Company Contributions or Benefits:

To view a current setup pay component, select the component on the list. To create a new Pay component, click on the Create New Component option below the list. The following screen will display:

  • Company – Select the company from the drop down where you will create the pay component in.
  • Component Name – Enter a name for the pay component in this field.
  • Payslip Description – If you want the pay component to display a different name on an employee payslip, enter the name in this field.
  • Pay Component Category – Select the pay component category. You can select between earnings, deductions, company contribution or benefit.

Tax Calculation Type (Earning Pay Component specific)

Select the tax calculation type for the pay component. You can select between:

  • Taxable (Normal)
  • Non Taxable

Input Type

Select the input type for the pay component. You can select between:

  • Hourly Rate – If you select this option, you have to enter a multiplier amount for this type of pay component.
  • Fixed Amount – If the pay component will have a fixed amount for all employees, select this option.
  • Amount – If you select this option, then you will have to add the amount per employee in the Pay Run view
  • Unit – Enter an amount per unit if you select this option. When you process this on the Pay Run, you will have to add in the units.

Other options

  • Periodic Taxable – If a pay component is periodic then check the check box.
  • Include in NSITF – If the pay component must be included in the calculation for NSITF, check this check box.
  • Include in ITF – If the pay component must be included in the calculation for ITF, check this check box.
  • Include For Pension Calculation – If the pay component must be included in the calculation for a pension, check this check box.

Click on the Save button to create the Pay Component.