Create a Regular Earnings Element for Mexico

This example demonstrates how to use the element template and create a regular earnings element for Mexico. Use the Elements task from the Payroll Calculation work area to create the element.

Let's look at the tasks required to create an earnings element:

1. Create the earnings element

2. Create the eligibility record for the element

How to Create the Earnings Element

To create an earnings element:

1. From your Home page, navigate to My Client Groups > Show More.

2. Under Compensation, click Elements.

3. On the Elements page, click Create.

4. Complete these fields, as shown in this table.

   Field	Value
   Legislative Data Group	Select an appropriate Legislative Data Group (LDG).
   Primary Classification	Standard Earnings
   Secondary Classification	Regular
   Category	Standard

5. Click Continue.

6. On the Basic Information page, complete the fields, as shown in this table:

   Field	Value
   Name	Enter a name, example: Regular Earnings
   Reporting Name	Enter the name that you want to display on reports for this earnings payroll element.
   Effective Date	Enter an early date so that the payroll element is available for use immediately.
   Input Currency	Mexican Peso
   Should every person eligible for the element automatically receive it?	No
   What is the earliest entry date for this element?	First Standard Earning Date
   What is the latest entry date for this element?	Final Close
   At which employment level should this element be attached?	Assignment Note: Assignments are associated to jurisdictions, which determine the required tax calculations.
   Does the element recur each payroll period, or does it require explicit entry?	Recurring
   Process the element only once in each payroll period?	Yes
   Can a person have more than one entry of the element in a payroll period?	No
   Process and pay element separately or with other earnings elements?	Process and pay with other earnings

7. Click Next. On the Additional Details page, respond to the questions, as shown in this table.

   Field	Value
   What is the calculation rule?	Flat amount. Note: If your earnings element requires a calculation rule of Days*Rate or Hours*Rate you must select the Time Card category when creating the element. The Standard category can only be used with Days*Rate and Hours*Rate by non-Payroll users.
   What is the default periodicity of this element?	Calendar Month
   Periodicity Conversion Rule	Mexico Rate Conversion.
   Is this element subject to proration	Yes
   Proration Group	Select a proration group
   Proration Units	Workday
   Proration Rate Conversion Rule	Mexico Rate Conversion
   Is this element subject to retroactive changes?	Yes
   Retroactive Group	Select a retroactive group.
   ISR tax calculation applicable to this element?	Regular
   ISR taxability rule applicable to this element?	Statutory
   State taxability rule applicable to this element?	Statutory
   What is the CFDI Code when this element result is positive?	001 - Wages and salaries
   What is the CFDI Code when this element result is negative?	004 - Others

8. Click Next twice. Verify that the information shown on the Create Element: Review page is correct.

9. Click Submit.

How to Create an Eligibility Record

On the Element Summary page, update the newly created element details.

1. Search for and select the element.

2. In the Element Overview section, select Element Eligibility.

3. Select Actions and then Create Element Eligibility.

4. In the Element Eligibility Name field, enter a name for the eligibility record.

5. In the Eligibility Criteria section, select any criteria if you want to restrict who can receive this earning. Or else, select All payrolls eligible.

6. Click Submit

   All the associated balances, feeds, input values, formulas, and related elements required for payroll processing are created automatically.