Primary Element Classifications

Elements are grouped into primary classifications, such as Earnings and Voluntary Deductions.

In a Human Resources department, you can use the primary classifications to identify groups of elements for information and analysis purposes. In a payroll department, the classifications control processing, including the sequence in which elements are processed and the balances they feed. The payroll application provides primary classifications and some balances, mainly to reflect tax legislation. They are designed to meet the legislative requirements, so you can't change or delete them. You can create additional balances to be fed by any of the primary classifications.

These are the primary classifications that are available:

  • Information

  • Balance Initialization

  • Direct Payments

  • Employer Charges

  • Employer Taxes

  • Involuntary Deductions

  • Pre-Statutory Deductions

  • National Insurance Deductions

  • Regular Earnings

  • Irregular Earnings

  • Tax Deductions

  • PAYE Deductions

  • Voluntary Deductions

  • Absences

  • Taxable Benefits in Kind

Note: When processing Irregular Earnings for an employee who has already been terminated, if there are no regular earnings, the NI calculation basis for NI Employee calculations will be processed as a weekly earnings period. If there are both regular and irregular earnings, the normal processing period applies. You must set up all Irregular payment types (such as discretionary bonus) as Irregular Earnings for the NI calculation to process terminations correctly.