assign time type and time identifier

Hi Experts,

My question are fundamental-

1) Do we maintain "Define Time types" and Assignment in "Assign time type & Time identifiers" only for incentive wage types or OT or some extra payment?

2) if that is true.  where do we assign the wage type to each Time type? As it 'll be required to make the payment

my Observation - i have seen mentioning "Time Types" in Absence/attendances valuation. which in itself linked to the wage types in absence valuation rule.

Thanks,