Rate Definitions for Absence Payments

Use a rate definition to determine the rate of a single unit of absence for payment during an absence period. However, you calculate and resolve the rates only in Oracle Fusion Global Payroll or a third-party payroll application.

This topic covers the following aspects:

• Using rate definitions with absence plans

• Types of absence payments that support rate definitions

Using Rate Definitions with Absence Plans

To associate a rate definition with an absence plan:

1. Create the rate definition using the Manage Rate Definitions task in the Absences work area.

2. Optionally, associate the rate definition with the absence plan on the Entries and Balances tab of the Manage Absence Plans task.

Example: If you want to calculate payments of each time unit when you disburse an accrual balance, you create a rate definition using the Manage Rate Definitions task. Then, when you create an absence plan, you select the rate definition that you created from the Disbursement Rate Rule list on the Entries and Balances tab.

The rate fields are optional in Absences even when you select the Transfer absence payment information for payroll processing check box. You can define the rates on the payroll side.

Types of Absence Payments that Support Rate Definitions

The following table describes the types of absence payments for which you can associate a rate definition:

Rates	Description
Absence Payment Rate Rule	Calculates payment during an accrual and qualification absence period. For a qualification absence plan, you can select this rate definition to calculate payment for a qualification absence period. When you create a qualification plan, remember that you define qualification bands to specify the percentage of payment during an absence period. Example: You want to award the worker 75 percent pay up to the first 90 days of the absence. You use a rate definition to define the calculation method to translate that percentage into an actual payment value.
Final Balance Payment Rate Rule	Calculates payment of accruals when plan participation ends. Example: If the worker is terminated or loses eligibility for the absence plan, you might want to use a rate definition to calculate the final accrual balance. Create a rate definition that considers the worker's salary details and calculates the payment value for each unit of accrued time.
Partial Disbursement Rate Rule	Calculates payment when paying out part of an accrual balance. Example: If the worker is terminated or loses eligibility for the absence plan, you might want to disburse the remainder of the accrual balance as cash. Create a rate definition that considers the worker's salary details and calculates the payment value for each unit of accrued time.
Liability Booking Rate Rule	Calculates the cost of a worker's accrual balance to determine employer liability. Example: If the is terminated or loses eligibility for the absence plan, you might want to determine employer liability for worker time accruals for the rest of the accrual term.