Earnings and Deductions

Earning and deduction elements enable you to send absence-related data to your payroll system so that payees can be appropriately compensated for time off. Think of earnings as adding to a person's pay and deductions as subtracting from a person's pay. There's little difference between defining earning elements and defining deduction elements.

The payroll system with which Absence Management is integrated determines whether you should create earning elements, deduction elements, or both:

• If using PeopleSoft Payroll for North America, create earning elements.

• If using PeopleSoft Payroll Interface with a third-party payroll system, create earning elements, deduction elements, or both as needed.

After you create earning and deduction elements in Absence Management, you map these elements to their counterparts in your payroll system. The rules that you define in Absence Management should be consistent with the corresponding earning and deduction rules in your payroll system.