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. High Line recommends 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 High Line 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