## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/us/payroll/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Salary Components

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Salary components are the different parts that make up an employee’s total salary. These include [earnings](/us/payroll/help/employer/settings/salary-components.html#earnings) and [deductions](/us/payroll/help/employer/settings/salary-components.html#deductions), which determine the gross pay and the final take-home salary of your employees.

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## Earnings

Earnings refer to any type of compensation or income an employee receives during a specific pay period (such as weekly, biweekly, or monthly). These earnings may be taxable or non-taxable based on the earning type and the applicable regulations.

By default, Zoho Payroll includes the following earnings types:

*   Regular Pay
*   Over Time Pay
*   Severance Pay
*   Double Pay
*   Bonus
*   Commission
*   Leave Encashment

These default earnings are pre-configured and cannot be edited, marked as inactive, or deleted.

In addition to the default earnings, you might need to create custom earnings specific to your organization. For example, if you offer a unique allowance or a performance-based incentive, you can [add new earnings](/us/payroll/help/employer/settings/salary-components.html#add-an-earning) to Zoho Payroll. Once added, these custom earnings can be assigned to employees, and you can choose to [edit](/us/payroll/help/employer/settings/salary-components.html#edit-an-earning), [mark as inactive](/us/payroll/help/employer/settings/salary-components.html#mark-an-earning-as-inactive), or [delete](/us/payroll/help/employer/settings/salary-components.html#delete-an-earning) them as needed.

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### Add an Earning

To add a new earning:

1.  Go to **Settings** and navigate to **Salary Components**.
2.  Click the **Add Component** dropdown at the top right and select **Earning**.

![Add Earnings Button in Zoho Payroll](/payroll/help/us/settings/salary-components/add-earning-button-zoho-payroll.png)

3.  Enter the **Earning Name**. This name must be unique from other earnings.
4.  Enter the name for the **Name in Pay Stub** field. This is how the earning will appear on the employee’s pay stub.
5.  Tick or untick **This is a taxable earning** option based on your preference.
6.  Tick **Mark this as Active** if you wish to make the earning active and use it in upcoming payrolls.

![Add Earning](/payroll/help/us/settings/salary-components/add-earning.png)

7.  Click **Save**.

Once saved, this earning can be used in payrolls, and you can assign it to employees.

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### Edit an Earning

**Note:** You can edit only the earnings that are of the type **Other Earnings**.

To edit an earning:

1.  Go to **Settings** and navigate to **Salary Components**.
2.  Click an earning that is of the type **Other Earnings**.
3.  Make the necessary changes.
4.  Click **Save**.

The earning will be updated.

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### Mark an Earning as Inactive

When an earning type is no longer relevant but you want to retain its history or reuse it in the future, you can mark it as inactive instead of deleting it. This ensures the earning is no longer available for new payrolls, while still preserving the record.

**Note:** You can mark an earning as inactive only if it is of the type **Other Earnings**.

To mark an earning as inactive:

1.  Go to **Settings** and navigate to **Salary Components**.
2.  Click the more icon next to an earning.

![Mark an Earning as Inactive in Zoho Payroll](/payroll/help/us/settings/salary-components/mark-earning-as-inactive.png)

3.  Select **Mark as Inactive**.

The earning will be marked as inactive, and you will not be able to associate it with any of your employees in future payrolls.

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### Delete an Earning

**Note:** You can delete only the earnings that are of the type **Other Earnings**.

**Prerequisites:** The earnings must not be associated with any employees in any payrolls.

**Warning:** Deleting an earning is permanent and cannot be undone.

To delete an earning:

1.  Go to **Settings** and navigate to **Salary Components**.
2.  Click the more icon next to an earning.
3.  Select **Delete**.

![Delete an Earning from Zoho Payroll](/payroll/help/us/settings/salary-components/delete-earning.png)

4.  In the popup that appears, click **Yes**.

The earning will be deleted.

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## Deductions

Deductions refer to amounts subtracted from an employee’s gross salary to arrive at the final take-home pay. These deductions can be for taxes, retirement contributions, garnishments, or other employee-related expenses.

For example, deductions may include voluntary contributions or court-ordered wage garnishments. These deductions must be applied in compliance with local and federal laws.

In Zoho Payroll, you can [add new deductions](/us/payroll/help/employer/settings/salary-components.html#add-a-deduction), assign them to employees, and manage the following actions:

*   [Edit a deduction](/us/payroll/help/employer/settings/salary-components.html#edit-a-deduction)
*   [Mark a deduction as inactive](/us/payroll/help/employer/settings/salary-components.html#mark-a-deduction-as-inactive)
*   [Delete a deduction](/us/payroll/help/employer/settings/salary-components.html#delete-a-deduction)

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### Add a Deduction

To add a new deduction:

1.  Go to **Settings** and navigate to **Salary Components**.
2.  Click the **Add Component** dropdown at the top right and select **Deductions**.

![Add Deductions Button in Zoho Payroll](/payroll/help/us/settings/salary-components/add-deduction-button-zoho-payroll.png)

3.  Enter the deduction’s name in the **Name in Pay Stub** field. This is how the deduction will appear on the employee’s pay stub.
4.  Select the deduction type:
    *   Deduction
    *   Garnishment
    *   Child Support Garnishment
5.  Select the deduction frequency:
    *   One-time deduction
    *   Recurring deduction
6.  Tick **Mark this as Active** to make the deduction available for payrolls.

![Add Deduction](/payroll/help/us/settings/salary-components/add-deduction.png)

7.  Click **Save**.

The deduction will be created, and you can assign it to employees as needed.

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### Edit a Deduction

**Note:** If you have assigned the deduction to employees, you cannot edit the deduction type and deduction frequency.

To edit a deduction:

1.  Go to **Settings** and navigate to **Salary Components**.
2.  Click a deduction.
3.  Make the necessary changes.
4.  Click **Save**.

The deduction will be updated.

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### Mark a Deduction as Inactive

When a deduction is no longer relevant but you want to retain its history or reuse it in the future, you can mark it as inactive instead of deleting it. This allows you to keep the deduction’s records while preventing its use in future payrolls.

To mark a deduction as inactive:

1.  Go to **Settings** and navigate to **Salary Components**.
2.  Click the more icon next to a deduction.

![Mark a Deduction as Inactive](/payroll/help/us/settings/salary-components/mark-deduction-as-inactive.png)

3.  Select **Mark as Inactive**.

The deduction will be marked as inactive.

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### Delete a Deduction

**Prerequisites:** The deduction must not be assigned to any employees.

**Warning:** Deleting a deduction is permanent and cannot be undone.

To delete a deduction:

1.  Go to **Settings** and navigate to **Salary Components**.
2.  Click the more icon next to a deduction.
3.  Select **Delete**.

![Delete a Deduction from Zoho Payroll](/payroll/help/us/settings/salary-components/delete-deduction.png)

4.  In the popup that appears, click **Yes**.

The deduction will be deleted.