Pay Components

Pay components are the building blocks of payroll calculation. They represent individual earnings, deductions, or employer contributions that make up an employee's pay.

Component Categories

Category	Direction	Examples
Earning	Adds to gross pay	Basic Salary, Transport Allowance, Overtime, Lunch Allowance
Deduction	Subtracts from gross pay	Loan Repayment, Union Dues, Welfare Deduction
Employer Contribution	Employer cost (not deducted from employee)	Employer SSNIT, Tier 3 Employer Pension

Component Classes

Class	Purpose
Standard	Regular earning or deduction
Bonus	Special tax treatment (first 15% of annual basic at 5% for residents)
Overtime	Special tax treatment (varies by salary band and day type)
Benefit in Kind	Non-cash benefit (e.g., housing) — taxable but does not affect net pay

Creating a Component

1. Navigate to Components → Create.
2. Enter a unique code (e.g., TRANSPORT, LOAN_REPAY).
3. Enter a display name (e.g., "Transport Allowance").
4. Select the category: Earning, Deduction, or Employer Contribution.
5. Select the component class: Standard, Bonus, Overtime, or Benefit in Kind.
6. Choose the calculation type: Fixed (set GHS amount) or Percentage (of base salary).
7. Set the default amount or default percentage.
8. Configure tax and pension flags:
   • Is Taxable — include in PAYE tax calculation
   • Is Pensionable — include in SSNIT/Tier 2 pension calculation
   • Affects Net — deduct from or add to the employee's net pay
9. Set Is Default to auto-assign this component to newly created employees.
10. Set the sort order to control display position on payslips.
11. Click Save.

Pay Structure Templates

Templates let you pre-configure a standard set of components for quick employee onboarding:

1. Create a template with a name, default pay basis, and tax category.
2. Add component lines with amounts/percentages.
3. When creating or importing employees, select a template to auto-assign all its component lines.

Assigning Components to Employees

Components are assigned to individual employees from the employee create/edit form. When assigning:

• Toggle the component on or off for the employee
• Override the amount or percentage if different from the default
• Active components show a green highlight; inactive ones are dimmed

Archiving Components

Components that are no longer needed can be archived. Archived components are excluded from future calculations but remain in historical run data. Components with active assignments show an assignment count warning before archiving.

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