Pay Component Usages determine the specific nature and usage of a pay component. Pay component usages are supplied therefor, users may not alter the usages defined.
Pay component usages are created and maintained through the Define Pay Component Usages (IPCU) form.
Pay component usages are the predefined 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.
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.
NEGATIVE NET PAYS#
In UPCALC, when net pay is negative, it can cause negative deposits.Usage 9 - Negative Net Pay is available so the negative net pay amount can be stored in another PC and then change the general net pay PC to zero. For details on how UPCALC processes Negative Net Pays using PC Usage 9, refer to the document UPCALC - Negative Net Pay
