Setting Up Earnings for Leave and Vacation Buy/Sell Plans
Earnings types are the various ways in which an employee might receive income. The benefit-related earnings that most concern earnings types are leave plans and vacation buy/sell plans.
To have the system process these earnings during the payroll process, you'll use the Earnings Table to create these codes. The Earnings Table stores the business rules that define how to calculate employee earnings.
This section assumes that your payroll department uses PeopleSoft Payroll for North America. If your organization uses another payroll accounting system, you'll need to ensure that the proper information is provided to the system for the correct processing of leave accruals. Follow these basic steps, making appropriate choices from your options.
On the Earnings Table - Special Process page, enter the leave plan type for the leave plan you are defining in the Leave Plan Accrual group box.
Select the appropriate Add To Accrual Balance check box.
The Add To Accrual Balance selection is important during the PeopleSoft Payroll Confirm process. It enables you to indicate where the accrued hours will be posted as unprocessed data on the employee's Leave Accruals pages.
You can choose to add hours to the Taken, Service Hours, Adjusted, Bought, or Sold accumulator.
The Leave Accrual process retrieves data from these sections to calculate the leave accrual award and the resulting leave accrual balance.
Select Taken when you want these hours to reduce the accrual balance (as in taken vacation hours or sick hours—but not regular hours).
Select Service Hours when the associated leave plans accrue a leave balance based upon the number of hours worked, and the hours for this earnings code should be considered in the accrual calculation.
Select Adjusted to define a special earnings type that adjusts accrual balances by adding to or subtracting from employee accrual balances.
Select Bought or Sold only when you are using this earning as the Vacation Buy or Vacation Sell earning.
Organizations typically allow employees to buy or sell vacation once, at the beginning of a plan year, based on vacation buy and sell earnings, deductions, and benefit plan rules.
To set up vacation buy/sell earnings:
Access the Earnings Table - Special Process page.
For Vacation Buy plans, select Bought in the Add to Accrual Balance group box.
For Vacation Sell plans, select Sold in the Add to Accrual Balance group box.