Components | The Sub-Code Function: A Flexible Income Base
About
When an income base has been configured to
allow for sub-code functionality the Compliance team ensures that the
correct tax codes are by default included in the income base. This is normally used on note components to support
statutory calculations.
This function is also known as a flexible
income base, since the user can include or exclude payroll components from the
income base. To establish if an income
base provides for this flexibility, please refer to the release notes under
“What’s New” to confirm if this functionality is available for a specific
income base.
To include or exclude
components from a flexible income base, access the Component Taxability screen. This screen displays all components
available on the Payroll Components screen.
Edition
This feature is available on all PaySpace payroll editions.
Navigation Path
Navigate > Configuration > Payroll >
Payroll Config > Component Taxability
Details
Step
1: To include or exclude a component, select the icon
on the component line item. Payroll components where the icon is greyed
out, are not available to include or exclude.
The release note will clarify whether the tax code of the relevant
payroll component is included or excluded by default.
Step 2: Select
the + icon on the sub-screen,
Step
3: Define the effective
date, choose the exception rule for the relevant income base and select the Submit button.
Important!
- Payroll components are stored
per frequency. Therefore, the Component
Taxability screen needs to be defined per frequency.
- The component that should be included or
excluded, is defined on the Component Taxability screen, not the note component
where the income base has been configured by the Compliance department.
- The Compliance department will define
the default tax
codes included in the income base. The user can define whether a component should be included or excluded.
- The Period from field on the top left of the Component Taxability screen is not applicable, only the effective date on the
sub-screen is applied.
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