Compensation and Benefits

Elements

Elements: Building Blocks of Pay and Benefits

With Oracle HRMS, you define a working model of your own types of compensation and benefits and the policies or business rules that govern the allocation of these to your employees. You define these types as elements. Elements are the building blocks of pay and benefits, both for HR analysis and payroll processing.

Elements can represent:

There is no limit to the number of elements you can define, and all your definitions are datetracked.

How Are Elements Created?

Some elements are supplied predefined with Oracle HRMS, some are available in template libraries, others are generated by the system when you define certain types of compensation and benefits, and the remainder you can define using the Element window to best meet the needs of your own enterprise.

Predefined Elements

The predefined elements are specific to your localization. They typically include deductions for tax and wage attachments. They may also include standard earnings, such as salary. You should not make any changes to these predefined elements.

Template Elements

Using the Configuration Workbench, you can select many earnings and deductions from a template library for your country and industry. Your selected earnings and deductions form a template set that you can load into your business group. The template set includes the elements and the balances, balance feeds, and formulas required for payroll processing. You can configure any of these definitions to match your specific requirements.

Generated Elements

In certain legislations, including North America and the UK, Oracle Payroll users can initiate earnings and deductions, and the system generates the elements you require, along with balances, balance feeds, and formulas. The method of initiating earnings and deductions depends on your localization. Typically you use the Element Design Wizard, Earnings and Deductions windows, or other template windows for specific earnings and deduction types. The processing options you select in the wizard or window determine the rules embedded in the generated elements and formulas. As with template elements, you can configure generated elements and formulas to match any special requirements.

Also, when you create PTO Accrual Plans, the system generates elements for you.

Introduction to Element Definition

The following diagram illustrates the items that you can define or select to control the entry and processing of any earning, deduction, basic benefit, or payment.

Compensation Definition

the picture is described in the document text

To take a simplified example, you could define an element called Wage, for hourly paid employees. You classify it in the predefined classification Earnings, which determines when it is processed in the payroll run and what payroll balances it feeds.

You specify one input value, Hours Worked, which must be entered in each pay period. (If necessary, you can define up to 15 input values, with fixed values, defaults, or validation.)

You associate a formula with the element, to calculate the wage for the pay period. A simple formula might be hours worked (from the input value) multiplied by hourly rate (which might, for example, be entered in the Grade Rate window).

You define who is eligible for the element by linking it to components of the employee assignment, such as grade, payroll, salary basis, or organization. In this example, the wage element is available to all employees on the weekly payroll.

You can define other processing rules, such as a termination rule. For example, you might specify that the employees' entry of the wage element should not close down on their termination date but remain open for processing of final pay.

Element Classifications and Processing Sequence

Elements are grouped into primary classifications, such as Earnings and Voluntary Deductions. In a human resources department, you can use the primary classifications to identify groups of elements for information and analysis purposes. In a payroll department, the classifications control processing, including the sequence in which elements are processed and the balances they feed.

Oracle HRMS provides you with these primary classifications and some balances, mainly to reflect tax legislation. They are designed to meet the legislative requirements of your country, so you cannot change them. You can create additional balances to be fed by any of the primary classifications.

Processing Sequence in the Payroll Run

An element's primary classification provides a default processing priority for the element in payroll runs. Lower priority numbers process first.

Most classifications also have a priority range. When you define an element in these classifications, you can overwrite its default processing priority with another number from the range. This is useful if you need to establish the order in which the element processes with respect to other elements in the classification.

Sometimes you must prioritize the processing of certain element entries for an individual employee. For example, you may need to determine the precise order in which deductions taken for wage attachments process for an employee. You can enter a subpriority number for element entries in the Entry Values window.

Canada only: Processing sequence for wage attachments is not determined by subpriority. Instead you can specify Attachment Priority and Prorate Rules in the Further Information field on the Entry Values window.

Secondary Classifications

You can define secondary classifications to feed your own user defined balances. These secondary classifications are subsets of the primary classifications. In some legislations, secondary classifications have been predefined. As with primary classifications, you cannot remove or change any predefined secondary classifications, and you cannot disable any of the predefined balance feeds created for them.

Note: Secondary classifications are not used in the United States, Canada, or Singapore versions of Oracle Payroll at this time.

Mexican implementations use classifications and sub-classifications.

Categories - for US and Canadian Classifications

Most US and Canadian classifications are subdivided into several categories. Categories further define an element's purpose, and can help to determine applicable processing or tax rules. You can define additional categories.

Costing

On the Costing tab of the Element Classifications window, you can view whether elements of this classification are Costable and Distributable. If the classification is Costable, you can select any costing option for elements when you define the element links. If the classification is Distributable, you can create a distribution set from elements of this classification over which you can distribute costs (such as overheads).

You can also view the cost type for elements in the classification, that is, whether they debit or credit the accounts they feed.

Frequency Rules

On the Frequency Rules tab of the Element Classifications window, you can view whether you can define frequency rules for elements of this classification. The payroll run uses a frequency rule to determine in which pay periods it processes a recurring element. On this tab you can also see which date the payroll run uses, by default, to assess frequency rules in your localization. You can select a different date when you define a frequency rule.

Survey of the Classifications

The survey of the classifications identifies:

Primary Element Classifications

Primary element classifications are supplied as startup data, and you cannot delete or update them as they are designed to meet legislative requirements.

Classification Meaning
C_ 0100 Basic Information Basic Information
C_ 0200 Salary Information Information for Salary
C_ 0300 Salary Earning Earning in Money for Salary
C_ 0400 Salary Earning in Kind Earning in Kind for Salary
C_ 0500 Salary Social Insurance etc Pre Tax Deduction of Social Ins etc for Salary (Non Resident)
C_ 0550 Salary Social Insurance etc Non Resident Pre Tax Deduction of Social Ins etc for Salary (Non Resident)
C_ 0600 Salary Middle Process Information Middle Process Information for Salary
C_ 0700 Salary Deduction Deduction for Salary
C_ 0800 Bonus Information Information for Bonus
C_ 0900 Bonus Earning Earning in Money for Bonus
C_ 1000 Bonus Earning in Kind Earning in Kind for Bonus
C_ 1100 Bonus Social Insurance etc Pre Tax Deduction of Social Ins etc for Bonus (Resident)
C_ 1150 Bonus Social Insurance etc Non Resident Pre Tax Deduction of Social Ins etc for Bonus (Non Resident)
C_ 1200 Bonus Middle Process Information Middle Process Information for Bonus Deduction for Bonus
C_ 1300 Bonus Deduction Information for Special Bonus
C_ 1400 Special Bonus Information Earning in Money for Special Bonus
C_ 1500 Special Bonus Earning Earning in Kind for Special Bonus
C_ 1600 Special Bonus Earning in Kind Pre Tax Ded of Social Ins etc for Spcl Bonus (Non Resident)
C_ 1700 Special Bonus Social Insurance etc Small Company Mutual Aid Prem for Spcl Bonus (Non Resident)
C_ 1750 Special Bonus Social Insurance etc Non Resident Middle Process Information for Special Bonus
C_ 1800 Special Bonus Middle Process Information Deduction for Special Bonus
C_ 1900 Special Bonus Deduction Information for Year End Adjustment
C_ 2000 Year End Adjustment Information Item for Year End Adjustment
C_ 2100 Year End Adjustment Information for Termination Payment
C_ 2200 Termination Payment Information Earning in Money for Termination Payment
C_ 2300 Termination Payment Earning Earning in Kind Item for Termination Payment
C_ 2400 Termination Payment Earning in Kind Pre Tax Deduction for Termination Payment
C_ 2500 Termination Payment Pre Tax Deduction Pre Tax Deduction for Termination Payment
C_ 2600 Termination Payment Middle Process Information Middle Process Information for Termination Payment
C_ 2700 Termination Payment Deduction Deduction for Termination Payment
C_ 2800 Santei Item for Santei
C_ 2900 Geppen Item for Geppen
C_ 3000 Employer Burden Charge Employer Burden Item

Primary Classification Processing Properties and Cost Types

The following table shows the default processing priority and costing details for the primary classifications.

Primary Classification Priority Range Default Priority Cost Type
C_ 0100 Basic Information 1000-1900 1500 Debit
C_ 0200 Salary Information 2000-2900 2500 Debit
C_ 0300 Salary Earning 3000-3900 3500 Debit
C_ 0400 Salary Earning in Kind 4000-4900 4500 Debit
C_ 0500 Salary Social Insurance etc 5000- 5400 5200 Credit
C_ 0550 Salary Social Insurance etc Non Resident 5500-5900 5700 Credit
C_ 0600 Salary Middle Process Information 6000-6900 6500 Debit
C_ 0700 Salary Deduction 7000-7900 7500 Credit
C_ 0800 Bonus Information 8000-8900 8500 Debit
C_ 0900 Bonus Earning 9000-9900 9500 Debit
C_ 1000 Bonus Earning in Kind 10000-10900 10500 Debit
C_ 1100 Bonus Social Insurance etc 11000-11400 11200 Credit
C_ 1150 Bonus Social Insurance etc Non Resident 11500-11900 11700 Credit
C_ 1200 Bonus Middle Process Information 12000-12900 12500 Debit
C_ 1300 Bonus Deduction 13000-13900 13500 Credit
C_ 1400 Special Bonus Information 114000-14900 14500 Debit
C_ 1500 Special Bonus Earning 15000-15900 15500 Debit
C_ 1600 Special Bonus Earning in Kind 16000-16900 16500 Debit
C_ 1700 Special Bonus Social Insurance etc 17000-17400 17200 Credit
C_ 1750 Special Bonus Social Insurance etc Non Resident 17500-17900 17700 Credit
C_ 1800 Special Bonus Middle Process Information 18000-18900 18500 Debit
C_ 1900 Special Bonus Deduction 19000-19900 19500 Credit
C_ 2000 Year End Adjustment Information 20000-20900 20500 Debit
C_ 2100 Year End Adjustment 21000-21900 21500 Credit
C_ 2200 Termination Payment Information 22000-22900 22500 Debit
C_ 2300 Termination Payment Earning 23000-23900 23500 Debit
C_ 2400 Termination Payment Earning in Kind 24000-24900 24500 Debit
C_ 2500 Termination Payment Pre Tax Deduction 25000-25900 25500 Credit
C_ 2600 Termination Payment Middle Process Information 26000-26900 26500 Debit
C_ 2700 Termination Payment Deduction 27000-27900 27500 Credit
C_ 2800 Santei 28000-28900 28500 Debit
C_ 2900 Geppen 29000-29900 29500 Debit
C_ 3000 Employer Burden Charge 30000-30900 30500 Debit

Predefined Secondary Element Classifications

This table shows the predefined secondary classifications supplied. You cannot update or delete these predefined classifications.

An element automatically receives any default secondary classifications defined for its primary classification.

Primary Classification Secondary Classifications Default
Balance Initialization None N/A
C_ 0100 Basic Information (None) N/A
C_ 0200 Salary Information (None) N/A
C_ 0300 Salary Earning C_ 0301 Salary Earning Taxable Yes
  C_ 0302 Salary Earning Subject to Social Insurance Yes
  C_ 0303 Salary Earning Subject to Wa Insurance Yes
  C_ 0304 Salary Earning Subject to Employment Insurance Yes
  C_ 0305 Salary Earning Non Resident Taxable No
C_ 0400 Salary Earning in Kind C_ 0401 Salary in Kind Taxable No
  C_ 0402 Salary in Kind Subject to Social Insurance No
  C_ 0403 Salary in Kind Subject to Wa Insurance No
  C_ 0404 Salary in Kind Subject to Employment Insurance No
  C_ 0405 Salary in Kind Non Resident Taxable No
C_ 0500 Salary Social Insurance etc C_ 0501 Salary Si Health Insurance Premium No
  C_ 0502 Salary Si Welfare Pension Insurance Premium No
  C_ 0503 Salary Si Welfare Pension Fund Insurance Premium No
  C_ 0504 Salary Si Employment Insurance Premium No
  C_ 0505 Salary Si Small Company Mutual Aid Premium No
C_ 0550 Salary Social Insurance etc Non Resident C_ 0551 Salary Si Non Resident Health Insurance Premium No
  C_ 0552 Salary Si Non Resident Welfare Pension Ins Premium No
  C_ 0553 Salary Si Non Resident Welfare Pension Fund Ins Prem No
  C_ 0554 Salary Si Non Resident Employment Insurance Premium No
  C_ 0555 Salary Si Non Resident Small Co Mutual Aid Premium No
C_ 0600 Salary Middle Process Information (None) N/A
C_ 0700 Salary Deduction (None) N/A
C_ 0800 Bonus Information (None) N/A
C_ 0900 Bonus Earning C_ 0901 Bonus Earning Taxable Yes
  C_ 0902 Bonus Earning Subject to Social Insurance Yes
  C_ 0903 Bonus Earning Subject to Wa Insurance Yes
  C_ 0904 Bonus Earning Subject to Employment Insurance Yes
  C_ 0905 Bonus Earning Non Resident Taxable No
C_ 1000 Bonus Earning in Kind C_ 1001 Bonus in Kind Taxable Yes
  C_ 1002 Bonus in Kind Subject to Social Insurance Yes
  C_ 1003 Bonus in Kind Subject to Wa Insurance Yes
  C_ 1004 Bonus in Kind Subject to Employment Insurance Yes
  C_ 1005 Bonus in Kind Non Resident Taxable No
C_ 1100 Bonus Social Insurance etc C_ 1101 Bonus Si Health Insurance Premium No
  C_ 1102 Bonus Si Welfare Pension Insurance Premium No
  C_ 1103 Bonus Si Employment Insurance Premium No
  C_ 1104 Bonus Si Small Company Mutual Aid Premium No
  C_ 1105 Bonus Si Welfare Pension Fund Insurance Premium No
C_ 1150 Bonus Social Insurance etc Non Resident C_ 1151 Bonus Si Non Resident Health Insurance Premium No
  C_ 1152 Bonus Si Non Resident Welfare Pension Ins Premium No
  C_ 1153 Bonus Si Non Resident Employment Insurance Premium No
  C_ 1154 Bonus Si Non Resident Small Co Mutual Aid Premium No
  C_ 1155 Bonus Si Non Resident Welfare Pension Fund Ins Prem No
  (None) N/A
  (None) N/A
  (None) N/A
  C_ 1501 Sp Bon Earning Taxable Yes
  C_ 1502 Sp Bon Earning Subject to Social Insurance Yes
  C_ 1503 Sp Bon Earning Subject to Wa Insurance Yes
  C_ 1504 Sp Bon Earning Subject to Employment Insurance Yes
  C_ 1505 Sp Bon Earning Non Resident Taxable No
  C_ 1601 Sp Bon in Kind Taxable Yes
  C_ 1602 Sp Bon in Kind Subject to Social Insurance Yes
  C_ 1603 Sp Bon in Kind Subject to Wa Insurance Yes
  C_ 1604 Sp Bon in Kind Subject to Employment Insurance Yes
  C_ 1605 Sp Bon in Kind Non Resident Taxable No
  C_ 1701 Sp Bon Si Employment Insurance Premium Yes
  C_ 1702 Sp Bon Si Small Company Mutual Aid Premium No
  C_ 1751 Sp Bon Si Non Resident Employment Insurance Premium No
  C_ 1752 Sp Bon Si Non Resident Small Co Mutual Aid Premium No
  (None) N/A
  (None) N/A
  (None) N/A
  C_ 2101 Year End Adjustment Over and Short Tax Amount No
  (None) N/A
  C_ 2301 Termination Earning Taxable Yes
  C_ 2302 Termination Earning Non Resident Taxable No
  C_ 2303 Termination Payment Earning Specific Executive No
  C_ 2401 Termination in Kind Taxable Yes
  C_ 2402 Termination in Kind Non Resident Taxable No
  C_ 2403 Termination Payment Earning in Kind Specific Exec No
  (None) N/A
  (None) N/A
  (None) N/A
  (None) N/A
  (None) N/A
  (None) N/A