Summary

The Components entity records:

• The base components that make up an employee’s remuneration package.
• Whether these components can be cashed up i.e. rather than the employee receiving the cash, the company pays for the benefit. For example medical insurance.

Fields

Type:

This field classifies the type of Component created. Select from

• Base Salary

  Where the Component is a Salary item.

• Cash

  Where the component is a cash item, such as an allowance, of a dollar value. A cash component is added to the Base Salary.

• Non-Cash

  Where the component is a benefit paid for by the employer such as Medical Insurance premiums where no extra cash is paid to the employee.

• On-Cost

  Where the component primarily benefits the employer, for example Training.

FBT:

This field determines if there is a Fringe Benefit Tax (FBT) obligation associated with this Component. Select Yes if Fringe Benefit tax applies to a Component.

Taxation Requirements

Generally Non-Cash Components are subject to FBT and Cash Components are not.