How to Create a Payroll Component

The Payroll Component feature allows you to define and manage critical elements of an employee's payroll, such as Allowances, Deductions, and Benefits. This feature also provides essential configuration options like setting the Component Name, determining whether the component will be visible on the payslip, specifying if it is taxable, and choosing how the component should be calculated in the payroll report. In this step-by-step guide, you'll learn how to create and configure payroll components that align with your organisation's payroll structure.

By following these steps, you will have successfully created and configured a payroll component, ensuring accurate payroll calculations that include allowances, deductions, and benefits. This feature provides complete flexibility for managing your payroll system efficiently, with the ability to customise visibility on payslips, define taxability, and set up precise calculation methods in payroll reports. You can always revisit and adjust these components as your payroll needs evolve.