Configure Payroll Settings and Pay Components
Configure payroll statutory rates, then create reusable recurring or one-time pay components for allowances and deductions.
For School administrators, Accountants. Updated 2026-08-02.
Overview
Payroll is component-driven. The payroll setting defines currency, working days per month, statutory Tier 1/Tier 2 rates, payroll frequency, pay day, and whether PAYE, SSNIT, and Tier 2 are auto-calculated. Pay components, also called type heads, define named earnings and deductions such as transport allowance, loan deduction, SSNIT, Tier 2, and PAYE.
A component can be fixed, a percentage of basic salary, a percentage of gross pay, or PAYE bands. A component can be recurring for every payroll run or one-time for the next run only. Statutory components calculate from the payroll setting and selected salary; users should not manually type SSNIT or PAYE amounts on staff payroll assignments.
Steps
- Open HR & Payroll > Overview and select New setting to configure statutory rules
- Open the Components tab and select Add type head to create earnings and deductions
- Choose Earning or Deduction, the calculation method, and whether the component is recurring or one-time
- For statutory items such as SSNIT, Tier 2, or PAYE, use the statutory component so the amount is calculated from payroll settings
- Save the component, then add it to each staff member who should receive or pay it
Common problems
A statutory deduction is not being taken from a staff member's pay
The statutory component must be added to that staff member's payroll assignment; creating the component alone does not apply it to anyone.
A one-time deduction repeats in the next run
One-time components are consumed after payroll generation. Confirm the component was created with One-time next payroll only before assigning it.
SSNIT shows zero on a staff structure
Add the SSNIT statutory deduction component to the staff payroll assignment and ensure the payroll setting has auto-calculate SSNIT enabled and a Tier 1 employee rate.