A payroll doesn't come down to just one number. It's built from individual pay elements, and understanding what these are makes it much easier to read a payslip, review a payroll register, or make sense of a compensation change.
What a pay element is
A pay element is a single line item that contributes to an employee's payroll for a cycle, for example a base salary, an allowance, or a deduction. Every pay element has:
An amount and currency
A frequency (for example, One-Time or recurring each cycle)
An effective date, which determines which payroll cycle it first applies to
The three categories of pay elements
Category | What it covers | Examples |
Earnings | What the employee is paid | Base salary, allowances (e.g. travel allowance) |
Employee deductions (EE Burden) | Amounts withheld from the employee's gross pay | Income tax/social security contributions, employee pension contributions |
Employer costs (ER Burden) | Additional costs your company pays on top of gross salary | Employer social security contributions, employer pension contributions |
Together, earnings and deductions determine an employee's Gross-to-Net (G2N) calculation, the path from gross pay to what actually lands in their bank account. Employer costs sit outside of that calculation but still form part of what your company pays for that employee each cycle.
Where to view an employee's pay elements
Open the employee's profile and go to the Compensation tab. This lists every active pay element for that employee, along with its amount and effective date.
Related articles
How to Submit Individual Payroll Changes
How to Submit Bulk Payroll Changes
Global Payroll Glossary of Terms