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.

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Edition

This feature is available on all PaySpace payroll editions.

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Navigation Path

Navigate > Configuration > Payroll > Payroll Config > Component Taxability

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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!

1. Payroll components are stored per frequency.  Therefore, the Component Taxability screen needs to be defined per frequency.
   
2. 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.
   
3. 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.
   
4. 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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