Component Types in the Wizard
On the Details screen, you select a component type (a calculation rate type) for a benefit, tax, or additional earning.
The component types:
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Simple—A single rate option per year with a threshold value. Then you assign the desired option to the appropriate drivers as defaults. Because the Simple component type is a single rate option or tier with a threshold value for all defaults, there’s only one row: No Option for Additional Earnings and Benefits and No Tier for Taxes.
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Rate Table—Provides different rate options with no threshold values. With this component type, you assign the desired option or tier to the appropriate drivers as defaults. The rate table provides rows of options and tiers (you defined these rows of options and tiers with the Options and Tiers on the Configure page), with no threshold values that are assigned.
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Rate Table and Threshold—Provides different rate options with thresholds. With this component type, you assign the desired option or tier to the appropriate drivers as defaults. The rate table with threshold provides rows of options or tiers with thresholds as previously configured. Additional Earnings and Taxes support the Maximum Value Type of Threshold Amount, which crosses all tiers regardless of the option or tier assigned as a default.
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Custom—Enables you to create custom calculation logic for a component’s additional earnings, benefits, or taxes. See Creating Custom Calculation Logic in a Component.
Tip:
A threshold is a cap or maximum value on the resulting expense value. For example, Car Allowance is a percent of salary up to a threshold of $4,000, when the Car Allowance benefit would stop. The rate changes when a cap is reached. For example, the tax rate in the first tier is 4.5% up to a threshold of $50,000, and the second tier is 12.6% up to $100,000. Not only does a threshold apply only to the tiered structure, but you can also set a maximum value with the Additional Earning, Benefit, or Tax calculations.