---
title: "Salary Component"
space: "USA Payroll Guide"
url: "https://us-payroll.bizmap.in/docs/payroll-setup/salary-component"
updated: "2026-07-06"
---

> The reusable building blocks of every salary, earnings and deductions.

## Overview

A **Salary Component** is a specific part of an employee's salary package. Each component 
can be configured as an **earning** or a **deduction** and customized to match your payroll 
policies. Components are combined inside a Salary Structure.

![Salary Component overview](/files/us_payroll_wiki/image16.png)
*Salary Component overview*

## Create a salary component

1. Go to **Home → USA Payroll → Salary Component**.
 ![Salary Component workspace](/files/us_payroll_wiki/image17.webp)
 *Salary Component workspace*
2. Click **Add Salary Component**.
 ![Salary Component list view](/files/us_payroll_wiki/image18.webp)
 *Salary Component list view*
3. Fill in all the details and click **Save**.
 ![New Salary Component form](/files/us_payroll_wiki/image19.webp)
 *New Salary Component form*

![Salary Component configuration options](/files/us_payroll_wiki/image20.png)
*Salary Component configuration options*

## Salary Component options reference


| Checkbox | Description |
| ---------------------------------------------- | ----------------------------------------------------------------------------------------- |
| Depends on Payment Days | The component value adjusts based on the number of payable days in the payroll period. |
| Is Tax Applicable | The component is taxable and included in taxable income unless exempted. |
| Deduct Full Tax on Selected Payroll Date | Full tax is deducted on the selected payroll date, regardless of period spread. |
| Exempted from Tax | The full amount is excluded from taxable income without declarations or proof. |
| Round to the Nearest Integer | The component value is rounded to the nearest whole number. |
| Do Not Include in Total | The component is excluded from total earnings/deductions. |
| Do Not Include in Accounting Entries | The amount is excluded from accounting entries during Journal Entry creation. |
| Remove if Zero Valued | The component is hidden on the salary slip when its value is zero. |
| Disabled | The component is inactive and excluded from payroll processing. |
| Is this Insurance Component? | Flags the component as insurance related for classification/reporting. |
| Is this Pretax Component? | The component is deducted **before** tax is calculated. |
| Is this FICA Component? | The component is added to **SS Taxable** and **MC Taxable** (Social Security & Medicare). |
| Is this Income Tax Slab Component? | The component is auto calculated from the configured Income Tax Slab. |
| Federal Income Tax and Additional Withholdings | The component is included in **Form 941** calculations. |


> **Tip:** Use **Is this FICA Component?** for Social Security and Medicare, and **Federal** 
> **Income Tax and Additional Withholdings** for federal withholding so they flow correctly 
> into your quarterly Form 941.

## Related Topics

- [Salary Structure](/us-payroll-wiki/payroll-setup/salary-structure)
- [Income Tax Slab](/us-payroll-wiki/payroll-setup/income-tax-slab)
- [Form 941 Details](/us-payroll-wiki/tax-forms-compliance/form-941-details)