Define Payroll Elements for Processing Absences for the US

To calculate and process absence payments, you need to define Absence elements.

Defining an Absence element involves:

Defining the element
Completing the absence detail questions
Completing the accrual liability and balance payment questions
Completing the absence payment questions
Submitting the element
Defining element eligibility records and cost distributions

For further info, see Define Absence Elements for the US in the Help Center.

Define an Absence Element

Use the Elements task. Select the Absence primary classification and one of these secondary classifications.

Maternity
Sickness
Vacation
Other

Complete the Absence Detail Questions

The questions in Absence Details of the element template help determine the more detailed questions it asks later.

Enter the calculation units to use when reporting the absence, such as on the payslip and statement of earnings.

Typically, select Days or Hours for reports that correspond to the units for your absence plan.
Select the work units conversion rule to calculate the absence rate.

Select the absence info to transfer to payroll based on the type of absence management plan.

This type of plan	Transfers this kind of info
Accrual	Accrual Balances
Accrual, Leave Donation, Compensatory	Accrual Balances and Absences
Qualification	Qualification Absences
No Entitlement	No Entitlement Absences

Complete the Accrual Liability and Balance Payment Questions

If you're going to transfer accrual balances, complete these questions.

Question	Steps
Calculate absence liability?	Select Yes if you calculate liability. Select a liability rate. Leave blank if the liability rate is the same as the absence payment rate. 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?	Select Yes to configure a final disbursement element and to maintain balances for the disbursement hours and payments. Optionally, select a rate to use for the calculation. Select the tax method to use for the final disbursement.
Does this plan enable partial payment of balance?	Select Yes to configure a discretionary disbursement element and to maintain balances for disbursement hours and payments. Optionally, select a rate to use for the calculation. Select the tax method to use for the discretionary disbursement.

Complete the Absence Payment Questions

Answer these questions on how you want to handle the absence payments.

Select a method to reduce regular earnings if:

Employees don't complete a time card
You don't use time card entries as a basis for calculating pay

Value name	What it does
Reduce regular earnings by absence payment	Reduces regular earnings by the absence payment. The employee is paid the same gross amount as their regular salary.
Select rate to determine absence deduction amount	Identifies when the employee isn't due to be paid for the absence at the same rate as their regular earnings. In this case, the regular earning is reduced by 100% of the regular earnings. However, the absence payment rate would be a different rate, such as 50%.

Select the tax method to use for the absence payment.
Optionally, select a rate to calculate the absence payment.

If you have standard earnings and absence elements in the same payroll run that reduce regular earnings, the payroll calculation reduces earnings in this sequence.

Using absence element entries
Using any standard earnings elements that reduce regular earnings

The salary balance isn't reduced beyond 0.

Submit the Element

When you're finished with the questions, you submit the element. The template automatically configures a base pay element, balances, formulas, and calculation components.

It also configures indirect elements, depending on the options selected in the template to transfer absence info.

When transferring this info	For these options	It creates these indirect elements
Accrual Balances	Discretionary Disbursements Final Disbursements	Accrual Discretionary Disbursement Final Disbursement
Accrual Balances and Absences	Discretionary Disbursements Final Disbursements	Accrual Entitlement Discretionary Disbursement Final Disbursement
Qualification Absences	none	Entitlement
No Entitlement Absences	none	Entitlement

Define Element Eligibility Records and Cost Distributions

Define element eligibility records for all the elements generated by the template, such as for your accrual, entitlement, discretionary and final disbursement elements.

If your enterprise calculates cost distributions, provide costing info for all the element eligibility records.

For example, for an accrual element:

Define element eligibility records for the accrual, accrual results, accrual retroactive, and accrual retroactive results elements.
Specify costing for the accrual results and retroactive results elements.

The costing process costs the change in the liability balance since the last payroll period, debits the expense account, and credits the liability account.