How Elements Hold Payroll Information for Multiple Features

Elements are building blocks that help determine the payment of base pay, benefits, absences, and other earnings and deductions. You associate your elements with salary bases, absence plans, and the benefits object hierarchy to determine how you will use the elements.

Here are some examples of how you can use elements.

Element Usage	Examples of Elements
Base Pay Management	Annual Salary Basis Monthly Salary Basis Hourly Salary Basis
Absence Management	Absence Payment Sick Pay Vacation Pay
Benefits	Awards and Prizes Group Term Life Insurance Registered Retirement Savings Plan
Time and Labour	Regular Hourly Earnings Overtime Earnings Shift Earnings
Payroll	Regular Standard Earnings Bonus Earnings Tax Deduction Involuntary Deduction

For further information, see the following sections.

Base Pay Management

You must set up salary basis and payrolls before you hire employees. Use the Manage Salary Basis task in the Compensation work area.

Once you establish the salary basis, to manage a worker's base pay:

1. Attach an earnings element to each salary basis.

2. Assign a salary basis (hourly, monthly or annual) for each worker.

When a manager or compensation specialist enters a base pay amount for a worker, the payroll process writes the amount to an element entry using the element input value you associated with the worker's salary basis. Payroll processing uses the element entry to generate payment amounts.

Absence Management

You can manage worker absences and corresponding entitlements. You can:

• Create absence types based on predefined absence patterns, and associate them with absence plans.

• Associate an absence element with an absence plan to transfer the following information for payroll processing:

  • Payments for absent time, for example, during maternity or long term sickness

  • Accrual disbursement at the end of absence plan year

  • Accrual disbursement when plan enrollment ends

  • Absence liability amounts

You can process the payments in the payroll application or use HCM extracts to transfer the information to a third-party payroll application for processing.

For more information on Absences for Canada, refer to Configuring Oracle Fusion Absence Management for Canada (2314365.1) on My Oracle Support.

Benefits

Attach elements at various levels in the benefits object hierarchy to create deductions and earnings that you can process in a payroll run to calculate net pay.

Time and Labour

Create elements for use in time cards, and calculate payroll or gross earnings based on the time card entries transferred to payroll. For example, for Oracle Fusion Time and Labour, you can run processes which create dependent payroll attributes and time card fields for element input values. You can automate the routine import of time card entries to payroll using predefined flows.

Payroll

For payroll processing, you can define earnings and deduction elements, such as bonus and overtime earnings and involuntary deductions. These elements incorporate all the components required for payroll processing, including formulas, balances, and formula result rules.