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How do I add or edit the payroll component?

After completing the company data, you have to make sure the payroll components that will be used in the salary payment.

The payroll components are divided into three which are allowance, deduction and neutral. The allowance is the amount given by employer to employee such as basic salary, attendance allowance etc. The deduction is the amount that will deduct the salary such as penalty, insurance etc. Moreover, the neutral component is the component that will not add or deduct the amount.

To know more about how to check, go through out of these steps:

  1. Go to ‘Payroll Process’ and choose ‘Payroll Master Setup’.
  2. Choose ‘Payroll Component’.
  3. Displayed the existing components such as the allowance, deduction and neutral components.
  4. You can delete the component by tapping the X button on each component

If you are about to add new payroll component, follow these steps:

  1. Go to ‘Payroll Process’ and choose ‘Payroll Master Setup’.
  2. Choose ‘Payroll Component’.
  3. Tap ‘Add New Component’
  4. Choose the component type either it is an allowance, a deduction or a neutral component.
  5. Type the component name (e.g Attendance Allowance).
  6. Decide either the component is subject to tax or not. If it is taxable, you need to switch on the toggle. Then, set the tax classification either it is regular or irregular income. Last, set the received either it is gross, nett or gross on top. Gross means that the allowance excludes the tax and it will deduct the amount of allowance. Nett means the allowance has included tax.
  7. Swipe if you want to calculate the allowance using formula.
  8. Swipe to activate the component. If you have it deactivated, the component will not affect the calculation.
  9. Input the formula. The default is BASE that means the formula used is in accordance with the Payroll Data in Payroll Master Setup. If you want to add certain formula for the allowance, you can input it manually by selecting the variable provided.
  10. Done with the formula, update the formula.
  11. Activate the toggles related to BPJS if the component effects the BPJS calculation.
  12. Choose the SPT code.
  13. All done? Tap Submit to save the changes.
  14. The added component will automatically appear on the Payroll Component page.

If you want to edit the payroll component, you can just tap the existing one. Then, edit what you want.

Updated on September 23, 2019

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