__Pay Components__ are any identifiable components of a pay, or any item that requires the ability to be stored or totaled. Pay components are used to store all the data calculated by the pay calculation. Pay Components are defined and maintained through the Define Pay Components ([IPPC]) form.

A user defined number is assigned to a pay component to hold a particular type of time, earnings, deductions, benefits, taxes, indicators, calculation factors or accumulators, or any wage or total earnings subject to a calculation.

The __Pay Component Rules__ govern the way pay line transactions will behave at data entry time, and determine the source of various information items required by the detailed calculations. Pay component rules may be varied by entity, unit or group.

__Pay Component Details__ determine the behavior or calculation of each pay component value that will be associated with a pay line transaction, and define all of the factors required for that calculation.

For example, the detail may specify that the value is a keyed amount representing time or dollars, or that it is calculated as a result of multiplying time by the wage rate, or that the value represents a maximum amount per period, month, quarter or year.
We recommend establishing a number scheme for your pay components before you begin entering the data.

The following is an example:
||Sequence ||Type ||Example|| Pay Point Type
|0001 - 0099| Totals| (Gross, Net, etc.)| 85-After Net Pay
|0100 - 0999| Time| Reg., OT, etc.) |20-Normal Earnings
|1000 - 1999| Earnings associated with Time |(Reg. $, OT $, etc.)| 20-Normal Earnings
|2000 - 2999| Earnings| (Bonus, Retro, etc.)| 20-Normal Earnings
|3000 - 3999| Employee Benefit Deductions| (Life, Pension, etc.)| 50-More Ben/Ded
|4000 - 4999| Employer Benefit Contributions| (Health, Dental, etc.) |50-More Ben/Ded
|5000 - 5999| Employee Deductions| (Parking, Union Dues, etc.) |30-Benefits/Ded
|6000 - 6999| Employee Gov’t Deductions| (Fed Tax, WCB, etc.)| 70-After Govt Calcs
|7000 - 7999| Employer Gov’t Contributions| (FUTA, EI, etc.) |70-After Govt Calcs
|8000 - 8999| Gov’t Earnings |(Taxable Wages, etc.)| 70-After Govt Calcs
|9000 - 9999| Accruals/Statistics |Variable|

The __Pay Point Type__ entered for pay components is very important. For PC’s that are not normally keyed (Benefit deductions, Tax amounts, etc.) the Pay Point Type must be after the process that normally creates them in order to allow users to enter adjustment amounts.

For example, if a dental plan is entered in the Pay Point ([IPPP]) form as 30-Benefits/Deductions then the pay components related to that plan must have a Pay Point Type of at least 50-More Benefits/Deductions or the benefit calculations for Dental will override any amounts manually entered in Pay Lines or Sundries.

The following rules are guidelines for pay component details set up. After reviewing your needs with your Consultant, your set-up may vary from these examples.

||PC|| PC Detail Type|| Calc Method
|Time |Entered Value |EV: Entered Value
|Earnings assoc. w/Time| Computed Value |EV * Rate \\or \\EV * Rate * UVar
|Earnings |Computed Value| EV: Entered Value
|EE Deductions| Computed Value |EV: Entered Value
|Period Maximums| Period Maximum|
|Monthly Maximums |Monthly Maximum|
|Quarterly Maximums| Quarterly Maximum|
|Yearly Maximums |Yearly Maximum|
|Declining Balances| Declining Balance|
|ER Contributions |Computed Value |EV: Entered Value
|Gov’t Earnings| Computed Value| EV: Entered Value


----
![Notes|Edit:Internal.PAY+COMPONENTS] 	
[{InsertPage page='Internal.PAY+COMPONENTS' default='Click to create a new notes page'}]