Pay Components vs Component Setup

Component Setup involves creating a new component (or altering an existing one), whereas the Pay Components screen is where existing components are assigned – either to the entire company, individual Pay Groups, individual Employee Groups, or to individual Employees.

Components do not need to be assigned in order to be used – any component can be added directly into the pay packet via the Add Components tab or through a timesheet. The situation where a component would be assigned as a pay component, is when you need it to be automatically added into each pay packet every time it is created. For instance – components that you see in a standard pay packet such as Ordinary Hours Pay, Direct Credit Balance, Tax Details etc. are all added to each employee as pay components by default.
Typical examples of company specific Pay Component use are Social Club deductions or Debt Repayment components.

Pay Components can be assigned at any of the four main scope levels. If a Pay Component is showing up in bold text in the pay components screen, this indicates that it has been added in at this scope level. For instance Tax Details will never be in bold as it is added in as a default for the entire application, however a Social Club deduction might be seen in bold if it is assigned and viewed in the Employee Pay Components screen.