Set Absence Payment Rates for the US

In situations where you want the payment to be different than regular salary, you can select a different rate for the salary reduction amount than the payment amount.

In this example, you want to calculate an hourly employee's absence rate when that rate is different from their base rate. The employee has an hourly wage of $20, and you want to pay them an absence rate of 75% of the base ($15).

Set an Absence Payment Rate of 75 Percent

In this example, you want to pay sick pay to your salaried nonexempt employees at 75% of the normal rate.

1. Define an Element rate definition, and mark this rate definition as a base rate.

   1. Start the Rate Definitions task.

   2. Click Create.

   3. Select the Element category.

   4. Enter an effective date, such as 2010-01-01.

   5. Select your US legislative data group (LDG).

   6. Select Amount as the storage type.

   7. For the Element Name, select an appropriate salary element.

      Eligible elements are:

      • Standard Earnings primary classification

      • Have Regular secondary classification

      • Attached to a salary basis

   8. Click OK.

   9. Enter the following basic info.

      Field name	What you enter
      Name	Name of the rate definition
      Short Name	Short name of the rate definition
      Base Rate	Select the box
      Periodicity	Annually
      Periodicity Conversion Formula	Standard Rate Annualized
      Currency	US Dollar

   10. Click Submit.

       The task automatically creates the rate contributor, including a default periodicity.

   11. Ensure this periodicity matches the rate definition's periodicity (for this example, annually).

2. Define a Derived rate definition.

   This rate definition will have a Base Rate contributor type, which uses the Element rate definition you defined in the previous step.

   1. Start the Rate Definitions task.

   2. Click Create.

   3. Select the Derived Rate category.

   4. Enter an effective date, such as 2010-01-01.

   5. Select your US LDG.

   6. Click OK.

   7. Enter the basic info.

      Field	Value
      Name	Name of the rate definition
      Short Name	Short name of the rate definition
      Periodicity	Annually
      Periodicity Conversion Formula	Standard Rate Annualized
      Currency	US Dollar

   8. In Rate Contributors, click Create.

   9. Select the Base Rate contributor type.

   10. Click OK.

   11. Enter the following.

       Field	Value
       Add or Subtract	Add
       Employment Level	Payroll Assignment
       Periodicity	Annually
       Factor Rule	Value
       Factor Value	0.75

   12. Click Save and Continue.

   13. Click Submit.

   For further info, see Overview of Absence Rate Definitions for the US in the Help Center.

3. During absence element definition:

   1. For How do you want to reduce earnings for employees not requiring a time card, choose Select rate to determine absence deduction amount.

   2. For the Rate to Determine Absence Deduction Amount, leave this field blank. By leaving this field blank, the payroll calculation automatically reduces the salary by the regular pay rate.

   3. For Which rate should the absence payment calculation use, select the derived sick pay rate you configured previously (75% rate).

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