How do wage basis rules work with element classifications for the US?

Wage basis rules act differently depending on the element's classification.

• Deduction element classifications identify whether they reduce the subject wages.

  When you view wage basis rules through the Component Group Rules task, a check mark indicates the deduction doesn't reduce.

• Earnings element classifications identify which earnings are subject to the tax.

These element classifications have predefined wage basis rules.

Primary classification	Secondary classifications
Imputed Earnings	Cash Tips Reported Domestic Partner Dependent Domestic Partner Nondependent Group Term Life Moving Expense Nonqualified and Taxable Moving Expense Qualified and Nontaxable Noncash Award Personal Use of Company Car Third-Party Long-Term Disability Third-Party Short-Term Disability
Pretax Deductions	Adoption Deferred Compensation 401k Deferred Compensation 401k Catch-Up Deferred Compensation 403b Deferred Compensation 403b Catch-Up Deferred Compensation 457 Deferred Compensation 457 Catch-Up Dental Care 125 Dependent Care 125 Flexible Spending Account Health Care 125 Health Savings Account Health Savings Account Catch-Up Vision Care 125
Supplemental Earnings	Adoption Awards and Prizes Bonus Cafeteria Plan Commission Deferred Compensation Distribution Dismissal Payments Moving Expense Nonqualified Moving Expense Qualified Paid Time Off Payout Pensions and Annuities Tips Supplemental Travel Taxable Reimbursement