Configure a Salary Basis

Recording salaries using salary bases is a prerequisite for Teachers’ Pension reporting and allowance setup.

A salary basis determines the period in which base pay is expressed, specifies whether salaries can be itemized with components, and identifies any associated grade rate for salary validation.

For further information on salary bases, see the chapter Base Pay in the Implementing Workforce Compensation guide on the Oracle Help Center.

Some element setup is needed to enable the correct processing of the earnings in payroll and some rate setup is needed to enable the accurate reporting of the salary in the MCR.

Create a Salary Basis Element

This requires the setup of a flat amount salary element (used to create salary element entries to send the salary information to payroll):

1. Use the Elements task to create your salary basis element. Click Create.
2. Enter the details as shown here:

   Create Salary Basis Element

   FIELD or question	VALUE
   Primary Classification	Regular Earnings
   Category	Standard
   Should every person eligible for the element automatically receive it?	No
   Does this element recur each payroll period, or does it require explicit entry?	Recurring
   What is the calculation rule?	Flat Amount
   Is this element subject to proration?	Yes, then select the salary proration group.
   Is this element subject to retroactive changes?	Yes, then select the salary retro group.

Create a Salary Basis Rate Definition

Create a rate definition for the salary element:

1. Use the Rate Definition task to create a new rate definition. Click Create.
2. Enter the details as shown here:

   Salary Basis Rate Definition

   FIELD	VALUE
   Category	Element
   Storage Type	Amount
   Element Name	The salary basis element you created previously
   Reporting Required	Must be selected.
   Calculate Live Rates	Selected by default.
   Returned Rate Details	Do not change.
   Contributor Type	Automatically created as Input Value.

   Before each payroll run, you must run the Generate HCM Rates Process in “Full” mode once, to create entries in the Rates Values table for regular earnings that use rate definitions. The process interprets events such as salary increase and will calculate accurately the rate values for each proration. The MCR uses some of the pro-ration calculations performed by the HCM Rate process.

   For more information see Generating HCM Rates under Setting Up Pay Calculation Components in the Implementing Payroll for the United Kingdom on the Oracle Help Center.