Setting Up Absence Elements

This chapter provides an overview of absence elements and discusses how to modify and create absence elements.

See Also

PeopleSoft Global Payroll PeopleBook, "Defining Absence Elements"

PeopleSoft Global Payroll PeopleBook, "Understanding Absence Management"

PeopleSoft Global Payroll PeopleBook, "Entering and Processing Absences"

Understanding Absence Elements

This section discusses:

• Absence rules for Global Payroll for China.

• Delivered absence entitlements and takes.

• Delivered element group and group members.

• Delivered absence earnings.

• Process lists and sections.

• Viewing delivered elements.

Absence Rules for Global Payroll for China

This section defines the customary absence rules for leaves and terminations that are used with Global Payroll for China. These rules can vary. The list is a simplification of the rules:

• The accrual year most commonly used is the 1^st of January to the 31^st of December, but you can also use a fiscal year (for example, the 1^st of April to the 31^st March, or the 1^st of July to the 30^th of June).

• Leave entitlement is based on employee status (for example, probation or confirmed), service period, and salary grade.

• The system allows adjustments to accrued leave (for example, due to forfeiture).

Note. Global Payroll for China uses standard leave types delivered by PeopleSoft. They are not specific to China. Global Payroll for China also uses standard PeopleSoft-delivered absence elements to demonstrate how you can set up leave for China. We have not created any absence elements that are China-specific.

The system allows the tracking of these leave types:

Delivered Absence Entitlements and Takes

PeopleSoft delivers the VAC ENT (vacation entitlement) entitlement and VAC TAKE (vacation take) for absences. You can use these elements as delivered, modify them, or create new elements.

Vacation

For the delivered VACATION entitlement, the calculation depends on the service seniority of the payee. This means the years of service from the hire date to the period end date. The entitlement is granted through a bracket and it represents the number of days per year:

Note. When a payee has a midmonth hire date and that payee's years of service warrants a change in entitlement, the system uses the new monthly entitlement for the pay period in which the required years of service was achieved. For example, a payee hired on October 12, 2002 would receive 1.83 days for the October 2007 payroll run because the payee achieved five years of service in the middle of the pay period.

Note. If the entitlement is 20 days per year and payroll is calculated on a monthly basis, the formula is 20÷12 = 1.67 days. At the end of the year the sum is equal to 20.04 (1.67*12 = 20.04). This means that a rounding rule issue exists.

To resolve the rounding rule issue, the calculation is accomplished using a bracket with 12 rows, where each row represents a period:

Because the entitlement is based on service seniority, the primary key is service seniority. A second key is used for the period number, which is based on the service date. The system also takes these items into consideration:

• The entitlement is prorated based on calendar days.

• Accumulators are generated for entitlement, balance, adjustment, and take (accumulator period is yearly based on hire day divided by hire month).

• At the end of the year the balance is forwarded to the next year.

• The payee is eligible to take vacation only a year after the payee is entitled.

When the balance is equal to zero, the system then uses the vacation entitlement. The system also uses a day formula to check whether the leave day is a working day (schedule hours) or a public holiday. It allows partial leave days and converts the partial hours that are entered to a fraction of a day (for example, 4 hours = .5 day).

Paid leave is associated with the VACATION PD earning code. Unpaid leave is associated with the VACATION UNP earning code. The rate associated with the vacation earnings is a formula that calculates the daily rate based on the system element MONTHLY RT ÷ 20.92 days per month. In the Global Payroll Rule, the vacation earning amount is a member of an accumulator that is then used to reduce the salary earning amount. For China, the same principal applies, except that the vacation earnings (VACATION PD) reduces the salary.

Delivered Element Group and Group Members

To invoke the vacation (VAC) entitlements, PeopleSoft delivers the CN EG LEAVE leave entitlement and take for Global Payroll for China. This element includes these element group members:

Delivered Absence Earnings

PeopleSoft delivers earnings elements for absences and vacations. You can use these elements as delivered, modify them, or create new elements.

This table summarizes the absence earnings for Global Payroll for China:

Note. NA indicates a value of not applicable.

All of the delivered absence-related earnings have a calculation rule of Unit × Rate. All absence earnings subtract from the SALARY earnings to maintain the same pay rate for salaried payees. They do not, however, subtract from the REGULAR earnings because earnings for hourly payees are based on the actual number of hours they worked during the period. For example, if a payee was absent for 8 hours during a 40-hour work week, the entered work hours would be 32.

The system processes the delivered earnings elements each time you run a payroll. You can change the processing schedule as needed.

See Also

Understanding Earnings

Process Lists and Sections

Global Payroll for China delivers the CN SE LEAVE absence-related process section. The CN SE LEAVE section is a member of the CN PR ABSENCE process list and contains the following elements:

• VAC DT SVC EXT (date)

• VAC DT ELIGIBTY (date)

• VAC ENT (absence entitlement)

• VAC (absence take)

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Global Payroll for China.

See PeopleSoft Global Payroll PeopleBook, "Viewing Delivered Elements and System Data," Viewing the Delivered Elements.

Modifying and Creating Absence Elements

Global Payroll for China delivers absence elements based on practices that are common to many businesses in China. Your specific business practices, however, may require you to modify the delivered elements or create your own. This section provides some examples of common absence rules modifications and additions. Many other ways are available, of course, in which you might want to set up absence elements. These examples illustrate the kinds of changes that are possible and how you implement them.

Modifying Vacation Accrual

The system determines how much vacation a specific payee should accrue each pay period based on job status and years of service. This information is stored in the ABS BR ENTITLE bracket. By changing the return values for this bracket, you can modify how much vacation the system assigns to payees.

See PeopleSoft Global Payroll PeopleBook, "Defining Data Retrieval Elements," Defining Bracket Elements.

Adding New Types of Absences

A business may provide payees with types of absences that are not delivered with Global Payroll for China, such as maternity leave or personal leave. To implement new absences, you must create a variety of new elements, including entitlements, supporting elements, takes, and earnings.

See PeopleSoft Global Payroll PeopleBook, "Defining Absence Elements."