What is the purpose of processing a Gross up component?

This feature is available on all PaySpace editions.

Gross up components allow you to process earnings that the employee should clear without any tax deductions.

The goal is to remunerate an agreed net amount as opposed to an amount prior to the tax deduction. Since taxable income is taxed by law, you will post the value and the system will automatically gross up the earning. This will result in the employee receiving the full amount after the tax deduction.

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