Pay Component Usages determine the specific nature and usage of a pay component.
Please note, the pay component usages are supplied by High Line. Users may not alter the usages defined.
Pay component usages are the High Line defined reasons for which a pay component may be created. Certain pay component usages are mandatory for the successful operation of the payroll calculation process (e.g. gross and net).
Other usages are mandatory based on the country in which an organization operates (e.g. U.S. legislated taxation usages, Canada legislated taxation usages), dictated by the state/province where the organization has located its business premises (e.g. state/provincial taxation), or are required to support taxation calculations (e.g. earnings subject to a tax deduction).
Many usages are optional, but are standard in the majority of organizations (e.g. earnings, deductions and benefits), or are usages that facilitate auditing, balancing and reconciliation activities.
The following set up must be done for pay components for the following usages:
- Usage 4 - Employee Advance
- The pay component must be placed in the GROSS element.
- Usage 5 - Advance Recovered
- The pay component must be in the TOTAL DEDUCTION element.
In addition, special attention must be paid when the pay component is defined. The ‘Create Arrears’ and ‘Collect Back’ toggles located in the Acct/Arrears tab of the IPPC function, MUST be ON for both of these two components.
Failure to follow these conditions will result in UPCALC exception messages.
Pay component usages are created and maintained through the Define Pay Component Usages (IPCU) form by High Line only.
You may access this feature under the Screen/Form menu: Payroll > Setup and Definitions > Define Pay Component Usages
U.S. INSTALLATIONS#
Below is a list of pay component usages that are available for U.S. Taxation.
Any usage with a description that contains ‘(PPE)’ will require a Pay Element to be defined and then entered on the Pay Component header (IPPC) form with the Pay Element code.
CANADIAN INSTALLATIONS#
Below is a list of the pay component usages for Canadian installations who are implementing Canadian Taxation.Any usage with a description that contains ‘(PPE)’ will require a pay element to be defined and then entered on the Pay Component header (IPPC) form with the Pay Element code.
Screen captures are meant to be indicative of the concept being presented and may not reflect the current screen design.
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