They are the factors on which the company’s salary is based. All of the employees make use of all/most of the salary items. The salary items values are determined for every employee separately based on his contract. They are items by which the salary sheet is made; it could be basic salary, variable, transportation…etc. You add all the items you need in the compensation set up.

Salary Division

Basic

A salary item from which any deduction or bonus is made and the fees are calculated per day, hour, or minute.

Taxable

A salary item on which taxes are applied.

Unpaid

A salary item which is not paid to the employee; it’s used for internal calculations (If needed).

Tax Exemption

A salary item which doesn’t apply to taxes according to specific conditions.

Page Display

Setup_Salary Items_Listing

Payroll Cycles_Edit Button To edit salary item.

Setup_Salary Items_Edit Box

To Add Salary Item

  1. Click on “+ Salary Item” button.
  2. A dialog box will appear.
  3. Fill in the required data.[/alert]
Setup_Salary Items_Add ButtonSetup_Salary Items_Add Box_Paid ItemSetup_Salary Items_Add Box_Tax Exempted Item

Hint:

  • You cannot delete salary item if it is used, or if the payroll cycles is  calculated.
  • If the salary item is “Unpaid” or “Tax Exemption“, it cannot be neither “Basic” nor “Taxable”. (“Unpaid” means that this amount of money will not be paid to the employee, but it exists in the salary sheet or the payroll cycle).