Wage components in a CLA
A wage component is analogous to a black box that, with the help of a calculation rule or a calculation formula, performs part of the wage calculation. A wage component has parameters, a calculation rule and after the calculation, a value. Parameters are input that are subsequently used by the calculation rule. The calculation rule gives the wage component its ultimate value.
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Description
AFAS maintains the configuration of the wage components, calculation rules, calculation bases and salary tables for the Profit CLAs. The CLA in Profit contains a configured set of wage components that can be used to immediately perform a wage calculation. We configure the wage components in accordance with the country, sectoral or industry branch regulations. As soon as something changes in these regulations, we adjust the wage components and supply a CLA Update.
We supply the following as part of the set of wage components:
- National regulations
This, among others, includes wage components for ‘Loonheffing’, social insurance premiums, fiscal regulations and salary.
- Sectoral regulations
Depending on the CLA, we support, for example, overtime regulations, pension, holiday allowance/holiday vouchers and supplementary regulations.
- Industry branch regulations
Depending on the CLA, we support, for example, overtime regulations, pension, holiday allowance/holiday vouchers and supplementary regulations.
- Frequently used components
We supply a default component for several commonly occurring situations. This, for example, includes bonuses, emoluments and personal allowances.
- Template components
Various deductions, payments and additions These are ‘empty’ template components that already are included in the right calculation bases. You can create a new component on the basis of these components by copying the template and then adapting it to your own needs.
To check changes to CLAs you can use the Changes to wage setup based on CLA (Profit) report.
A wage component uses:
Procedure
- Classification
To identify the wage components, you can assign categories and groups to your own wage components.
- Wage component root number
AFAS assigns a root number to each wage component. A wage component without a root number is purple and was created by you or the consultant.
- Adjust the description
You can change the description of the wage component using a customer description. Profit will use this deviating description in the wage check cockpit and on other reports.
- Display a wage component in the control register
You have the option in Profit of specifying whether Profit will display a wage component in the control register.
- Do not show a wage component in the wage check cockpit
You can decide per wage component whether you want to show it in the wage check cockpit (four-window pay slip).
- Payment or deduction wage component
You can adjust the settings in the wage component to indicate whether the wage component is a payment or a deduction. A deduction means that the value of the wage component will be deducted from the calculation basis in which it is included. A payment increases the calculation basis.
- Wage component levy type
A wage component can be taxed using the regular table or the special rate table.
- Gross up a wage component
You can gross up a wage component. In case of a grossed up wage component the amount of the wage component is a net amount. If premiums and/or ‘Loonheffing’ are due on the wage component, then Profit will increase the gross amount such that the remaining value of the wage component is the net amount.
- Terminating a wage component
There are various ways in which you can terminate a wage component at the employee, employer or CLA level.
- Calculating a wage component
A calculation rule is at the heart of a wage component. It is the mathematical formula that gives the wage component its ultimate value.
Also see
- CLA Update
- New wage component
- Parameters
- Calculation bases
- Wage summaries
- Salary tables
- View the wage component in the wage control cockpit
- Place wage summaries, wage components and calculation bases in reports