Define Payroll Elements for an Absence Accrual Plan for Mexico

This example shows how you can define an absence element for a vacation accrual absence plan. Based on your setup decisions, this procedure configures these additional elements:

• Accrual element to process absence liability amounts

• Entitlement element to process payments for absence during vacation

• Discretionary Disbursement element to process disbursement of partial time accruals

• Final Disbursement element to process accrual disbursement when the absence plan enrollment ends

The name of the element is prefixed to each additional element.

This table summarizes key decisions for this scenario.

Decisions to Consider	In This Example
What type of an absence are you transferring to payroll?	Accrual balances and absences
Who is eligible to receive this element?	All workers
What units do you want to use for reporting calculations?	Days
Do you want the element to calculate absence liability?	Yes
Which rate should the calculate absence liability use?	Liability Rate
Does your absence plan enable balance payments when enrollment ends?	Yes
Which rate should the final disbursement payment use?	Final Disbursement Rate
Does your absence plan enable payment of partial accrual balances?	Yes
Which rate should the partial disbursement payment use?	Partial Disbursement Rate
How do you want to reduce earnings for employees not requiring a time card?	Reduce regular earnings by absence payment
What type of taxation applies to this element?	Regular
What is the CFDI Code when this element result is positive?	001 Wages and Salaries
What is the CFDI Code when this element result is negative?	064 Adjustment - Other income due salaries Subject

Before You Begin

Ensure that you configured a rate definition to determine the monetary value of a unit of absence, and depending on your enterprise, separate rates to calculate liability, discretionary disbursement, and final disbursement payments. You configure a rate definition using the Rate Definitions task from Payroll in My Client Groups or Setup and Maintenance.

How to Define a Liability Rate Definition

Before creating the rate definition, create a standard earnings element with a primary classification of Standard Earnings and category of Standard.

1. Using the Rate Definitions task create a rate definition and make these selections:

   Field	Value
   Category	Element
   Effective Start Date	Select the start date, 01/01/2020. It must be on or after the effective start date of the standard earnings element you created.
   Legislative Data Group	Select your legislative data group.
   Storage Type	Amount
   Element Name	Select the name of the standard earnings element you created from the list of values.
   Periodicity	Workday
   Periodicity Conversion Formula	Mexico Rate Conversion
   Rate Contributors Periodicity	Workday

2. Save your work.

How to Define an Absence Element

1. From Setup and Maintenance or Payroll in My Client Groups, use the Elements task.

2. Click Create.

3. On the Create Element dialog box, complete the fields as shown in this table.

   Field	Value
   Legislative Data Group	Select your legislative data group.
   Primary Classification	Absences
   Secondary Classification	Vacation
   Category	Absence

4. Click Continue.

5. On the Create Element: Basic Information page, complete the fields as shown in this table. Use default values for fields unless the steps specify other values.

   You can enter up to 50 characters for the element name. If you enter more than 50 characters, the application will automatically shorten the name.

   Field	Value
   Name	Vacation
   Reporting Name	Vacation
   Effective Date	01/01/2010
   Input Currency	Mexican Peso

6. In the Absence Plan Details section, complete the fields as shown in this table. Use default values for fields unless the steps specify other values.

   Field	Value
   What calculation units are used for reporting?	Days
   Work Units Conversion Rule	Mexico Rate Conversion
   What type of absence information do you want transferred to payroll?	Accrual Balances and Absences

7. Click Next.

8. On the Create Elements: Additional Details page, in the Accrual Liability and Balance Payments section, complete the fields as shown in this table. Use default values for fields unless the steps specify other values.

   Field	Value
   Calculate absence liability?	Yes
   Which rate should the liability balance calculation use?	Liability rate This is the rate definition created in the previous section. Note: Usually the rate is the same as the absence payment rate. You might select a different rate when estimating liability for billing purposes.
   Does this plan enable balance payments when enrollment ends?	Yes Note: The Final Disbursement element is created. If you select No, the Final Disbursement element isn't created.
   Which rate should the final balance payment calculation use?	Final disbursement rate
   Does this plan enable partial payment of balance?	Yes Note: The Discretionary Disbursement element is created. If you select No, the Discretionary Disbursement element isn't created.
   Which rate should the discretionary disbursement use?	Discretionary disbursement rate

9. On the Create Elements: Additional Details page, in the Absence Payments section, complete this question .

   Field	Value
   How do you want to reduce earnings for employees not requiring a time card?	Reduce regular earnings by absence payment
   Which rate should the absence payment calculation use?	Select the rate to use to calculate leave payment. This would be the rate definition created in the previous section.

10. On the Create Elements: Additional Details page, in the Special Rules section, complete this question:

    Field	Value
    What is the CFDI Code when this element result is positive?	001 Wages and Salaries
    What is the CFDI Code when this element result is negative?	064 Adjustment - Other income due salaries Subject

11. Click Next .

12. On the Create Element: Review page, review the information that you entered so far.

13. Click Submit to open the Element Summary page.

    The template generates all the related elements, balances, and formulas.

How to Define Element Eligibility

1. In the Element Overview section of the Element Summary page, click the Element Eligibility node.

2. Click Create Element Eligibility from the Actions menu.

3. In the Element Eligibility section, enter Vacation Payment Open in the Element Eligibility Name text box. Leave the rest of the fields on the page blank.

4. Click Submit.

5. Click Done.

6. In the Elements page, search for the other elements prefixed with your absence element name.

7. Select each element in turn and repeat the steps on the Element Summary page to define eligibility for each element.