1. Implementing Compensation
  2. Create a Payroll Element to Use with Individual Compensation Plans

Create a Payroll Element to Use with Individual Compensation Plans

Configure the payroll element for use in recurring or nonrecurring individual compensation allocations, voluntary contributions, and nonmonetary information. For example, use it for allowances, spot bonuses, stock grants, retirement savings plans, charitable donations, and storage of duration or points information.

You can use a payroll element in only one option of one individual compensation plan. And you need to use different elements for salary bases and individual compensation plans.

This guidance applies to US legislative data groups (LDG).

  1. On the My Client Groups > Compensation page, click Elements.
  2. On the Elements page, click the Create icon.
  3. On the Create Element dialog box, complete these steps:
    1. Select a US LDG.

    2. Select the primary classification. The listed classifications depend on the LDG that you selected.

      Element Use Suggested Primary Classification
      Recurring plan payments Standard Earnings
      Nonrecurring plan payments for bonus or lump sum elements Supplemental Earnings
      Recurring and nonrecurring voluntary deductions for individuals’ savings contributions and charitable deductions Voluntary Deductions or Pretax Deductions

      Stock grants and awards

      Storing nonmonetary information

      		 Information

    3. Optionally select the secondary classification. When the selections don't really match your purpose, you can skip this step.

      Element Use Suggested Secondary Classification
      Recurring plan payments Regular Not Worked
      Nonrecurring plan payments Awards and Prizes, Bonus, another relevant option, or leave it blank.
      Recurring and nonrecurring voluntary deductions Select the relevant option. Otherwise, leave it blank.

      Stock grants

      Storing nonmonetary information

      		 Leave it blank.
    4. Select the appropriate category, if required, such as Standard.
    5. Click Continue.
  4. On the Create Element: Basic Information page, complete these steps:

    1. Enter a descriptive name that lets you and others easily figure out the use or purpose of the element. Make sure that the name starts with a letter and contains only letters, numbers, spaces, hyphens, or a combination of these. It can't contain any special characters.

      You can include a prefix, such as IC that lets people easily identify that the element is for an individual compensation plan. You don't want people using the same element in different compensation objects because it can lead to payroll conflicts. It can also lead to unexpected deletions of salary or individual compensation. Example names are IC Gym Allowance, IC Car Allowance, IC Quarterly US Sales Award, IC New Hire Stock Grant, and IC Red Cross Contribution.

    2. Complete these basic information fields.

      Field Value Guidance
      Reporting Name

      Enter the name that you want to show in compensation history, on reports, and on payslips for this earnings payroll element.

      Reporting names need to be unique for elements that you add to compensation history.
      Effective Date

      Enter 1/1/1951.

      Enter an early date so that the element is available for use immediately in your salary bases, and individual and workforce compensation plans.
      Currency

      Select US Dollar.

      Identifies the currency of the entered and displayed allocation, deduction, or contribution amount.
      What is the earliest entry date for this element? Select First Standard Earning Date.
      What is the latest entry date for this element? This date decides how element entries process after someone's job is terminated or they're transferred to another payroll. Select the value that fits your business process.
      At which employment level should this element be attached?

      Select Assignment.

      Relationship-level and term-level elements aren’t supported.
    3. Specify whether this element recurs each payroll period or requires an explicit (nonrecurring) entry, such as a bonus, stock grant, or onetime charitable donation.
    4. Specify whether a person can have more than one entry for this element in a payroll period. To let people link the same element to multiple individual compensation plans, select Yes.

    5. To accept the remaining default values, click Next.

      For Information elements, skip to the Double-Check Your Selections and Submit the Element section by clicking Next again.

  5. If your implementation includes it, on the Create Element: Additional Details page, complete these steps:
    1. Select the calculation rule. For recurring and nonrecurring plan payments and nonrecurring voluntary deductions, select Flat amount. For recurring voluntary deductions, select Flat amount or Percentage of Earnings.

    2. Select the default periodicity, which is the frequency that the plan stores the amount in.

      Element Use Value Guidance
      Recurring plan payments The typical value is Monthly.

      Nonrecurring plan payments

      Nonrecurring voluntary deductions

      		 Quarterly, Annually, or Periodically
      Recurring voluntary deductions Typically the same periodicity as base pay, such as Annually or Monthly
    3. Select the conversion rule for the element. For the calculation used by each conversion rule, see Conversion Rule Options for Configuring Additional Details of Payroll Elements.

    4. To accept the default values for the remaining rules, click Next.

  6. On the Create Element: Review page, complete these steps:
    1. Review all your rules and options to ensure that every value is correct.
    2. To create the element, click Submit.
  7. On the Element Summary page, complete these steps:

    1. Review the generated input values.

      • For the input value that you link to the plan option, make sure that Special Purpose is Primary input value. Typically, this is the Amount input value. If the value wasn’t automatically created, you can manually add and configure it here. On individual compensation pages and in notifications, the primary input value appears in the Value column. Detail pages show other input values. And notifications can show other input values if the ORA_CMP_BIP_IC_SHOW_INPUT_VALUES profile option is enabled.
      • For each input value that doesn't apply to the plan, deselect the Displayed and Allow User Entry options, if they aren’t already clear.
      • For stock grant information elements, make sure that an input value with the Number unit of measure has Special Purpose set to Primary Input Value. The element date feeds the Grant Date column of the stock history table and the primary input value feeds the Shares Granted column. The Shares section of people's Compensation page uses these values. Depending on configurations, people's total compensation statements can also use them.
      • For storage of nonmonetary information, make sure that Primary Input Value doesn't have Money as the unit of measure.
    2. To validate input values entered on individual compensation pages, add the relevant validation fast formula. For example, add a validation formula to enforce length of service requirements. A recipient's service must be more than 10 years to get a proposed award of 1,000 USD or more. The proposed allocation for anyone with shorter service must be less.

    3. Optionally complete the steps to set up minimum and maximum values when you use these elements with individual compensation plans:

      • Standard earnings elements with a Regular Not Worked secondary classification
      • Supplemental earnings elements

      Setup steps:

      1. In the Element Overview, Input Values section, select Amount.
      2. In the Input Values section, on the Edit menu, select Correct.
      3. In the Default Entry Values and Validation section, enter a minimum or maximum value, or both.
      4. Select Warning or Error, as appropriate.
        • Warning: Show a message when the manager or HR specialist enters an amount that's below the minimum value or above the maximum value, if set. This usage enables them to still continue with their submissions.
        • Error: Show a message when someone enters an amount that's below the minimum value or above the maximum value, if set. This usage prevents them from continuing until they enter an amount that's within the specified limits.

    4. Make the element eligible for everyone to use. The element will apply only to people assigned the salary basis linked to this payroll element.

      1. In the Elements Overview section, select Element Eligibility.
      2. On the Actions menu, select Create Element Eligibility.
      3. In the General Information section, Element Eligibility Name field, enter the element name with the suffix Open. For example, for the IC Gym Allowance payroll element, the element eligibility name would be IC Gym Allowance Open.
    5. Click Submit.
    6. Click Done.

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