Overview of Payroll Elements

Some elements are predefined. You can also create other elements to match your requirements. Each element belongs to a primary classification, according to its purpose, which determines the template you use to create it.

For information on how to secure and limit access to elements based on your business requirements, see Secure Elements through HCM Data Roles and How to Restrict Access to Elements Using Element Security Profile and HCM Data Role.

Use the template to create the elements and depending on your country extension, you create the associated items required for payroll processing.

Use the elements to represent these components:

• Earnings, such as salary, wages, and bonuses

• Compensation, such as employee stock purchase and insurance plans

• Absences from work

• Tangible items distributed to persons, such as tools, uniforms, mobile phones, or computers

• Statutory deductions, such as taxes, voluntary deductions, contributions to charities or savings plans, and involuntary deductions, such as court orders and pretax deductions

• Employer taxes and other employer liabilities

Note: You can associate a time card with a results element that has the costing definition. On the Element Summary page, you can use the base element attribute to directly link a time element to the result element.

Use Predefined Elements

The predefined elements are specific to your country or territory. They typically include deductions for tax and wage attachments. You can't make any changes to these predefined elements. However, you must create eligibility records for them.

Create Element

You can create as many earnings and deduction elements as you require using the Elements task. Let's assume that, effective 6th March, you create an element entry for a worker. In this case, the element entry has a start and end date of 6th March.

You select the element classification and category that determine the template of questions. You answer the questions to specify the details of the element you want to create. The items that the template generates can include multiple elements, input values, formulas, balances, and other items.

Note: The template you use to create elements also depends on the configuration selected for your country or territory on the Features by Country or Territory page. For example, if the country extension is set to Payroll, you use a template that generates all the items required for payroll processing. If the country extension is set to Human Resources or None, you use a basic template that generates the elements only. However, if you select an element classification, such as Standard Earnings, Supplemental Earnings, Direct Payments and Taxable Benefits, the basis template creates input values for Amount, Periodicity, and Full-Time Equivalent.

You can configure any of the generated items to match your specific business requirements. For example, you can add input values, edit the formulas, or add a status processing rule to use a different formula for certain assignment statuses. You must also create element eligibility records for the elements.

This table explains the purpose of the items that you use when creating element.

Items	Purpose
Input Values	Defines the entry values available on each entry of this element, such as hours worked or amount.
Element Eligibility Records	Defines the eligibility criteria a worker's employment record must meet to be eligible for the element. For example you can use grade, payroll, salary basis, or organization as eligibility criteria.
Status Processing Rules	Identifies the formula the payroll run uses to process the element, and how to handle the formula results.
Related Formulas and Related Elements	Identifies additional elements and formulas created by the template for payroll processing.
Related Balances	Identifies the balances created by the element template for this element.