There are lots of pay components already in Sage Payroll which you can use. If you need to, they can be edited to suit your company, or you can create new ones.
Pay components can be added each time you process a pay run, or they can be added to an employee or pay group's payslip template so they appear automatically each time you start a pay run.
The default pay groups in Sage Payroll already come with common pay components as part of the pay group template. That means when you use those pay groups, you get a list of payment and deduction types to enter values for.
The predefined transactions cannot be deleted unless it is a new pay component with no values processed for any employees.
Create a pay component
To create a new pay component:
From Maintenance, select Pay Components.
From the Component Type drop-down, select the type of component you want to create.
Select Add New Pay Component situated on the top right-hand side.
Enter the details for the component as required, then Save.
NOTE: If you create a taxable pay component, you must also enter an IRP5 code, please reach out to your tax practitioner for details on these tax totals.
NOTE: If you create a deduction you will have the option to select if this is a tax-deductible deduction. You will also be able to add an IRP5 code if it is applicable to your deduction, please reach out to your tax practitioner for details on these tax totals.
Edit a pay component
The pay components that are already in your company cannot be edited, but you can change whether they appear on your OID report or in your payroll transactions.
If you want to change this or you've created a new pay component and want to change it:
From Maintenance, select Pay Components.
From the Component Type drop-down, select the type of component you want to edit.
Select the pay component by clicking on the component name and then edit it as required.
Click on Save to make the changes.
Attach a pay component to a pay group or employee
When you attach a pay component to a pay group it appears in all future pay runs for any employees in that pay group. This can save time if you have pay components that apply to lots of employees.
To attach a pay component to a pay group:
From Maintenance, select Pay Groups.
Select the pay group you want to attach the pay component to, from the left-hand side and then click on Edit Pay Group on the right-hand side.
Select Next, then Next again to bring up the Pay Template Detail options.
Select either Add new Earnings, Add new Deductions, Add new Benefits, or Add new Company Contribution as required.
Select the check box(s) next to the new pay component, then Add.
Check the pay component that appears in the list, then Save.
The system will give you a message stating that this will be applied to all future pay runs, read through the message carefully and then click on continue.
When you attach a pay component to an employee it will appear in all future pay runs for that employee, even if they change pay group. This can be really useful if you have pay components that are uncommon.
To attach a pay component to an employee:
From the Employee tab, select the employee you want to edit.
Select Payslip Values.
Select either Add Earnings, Add Deductions, Add Benefits, or Add Company Contribution as required.
Select the check box next to the new pay component, then Add.
Check the pay component that appears in the list, then Save.
The system will give you a message stating that this will be applied to all future pay runs, read through the message carefully and then click on continue.