1. Implementing Payroll for the United States
  2. Configure Employee Salary Rates for Time and Labor Processing for the US

Configure Employee Salary Rates for Time and Labor Processing for the US

For Oracle Fusion Time and Labor to derive the correct rate for regular, overtime, and premium hours, it must know the person's salary rate.

To do this, you must configure a rate definition that captures it and delivers it during payroll processing.

This involves:

  1. Configuring an Element rate definition, and marking it as the base rate.

  2. Configuring a Derived rate definition with the Base Rate contributor type.

  3. Creating a Time Entry element, and attaching your Derived rate definition to it.

Configure the Element Rate Definition

Your derived rate requires a rate definition to serve as its base. To configure that base rate definition:

  1. Start the Rate Definitions task.

    1. From My Client Groups, click Show More.

    2. Under Payroll, click Rate Definitions.

  2. Click Create.

  3. Select the Element category.

  4. Enter an effective date.

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

  6. Select the Amount storage type.

  7. Select an appropriate salary element.

    This element must meet the following criteria.

    • Standard Earnings primary classification

    • Regular secondary classification

    • Attached to a salary basis

  8. Click OK.

  9. Specify the following.

    For this field

    Do this

    Name

    Provide a meaningful name for your rate definition

    Short Name

    Provide a short name for the rate definition

    Base Rate

    Select this box

    Periodicity

    Select Annually

    Periodicity Conversion Formula

    Select Standard Rate Annualized

    Currency

    Select US Dollar

  10. Define any other values you require for your rate definition, and click Submit.

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

  11. Ensure the rate contributor's periodicity matches the rate definition's periodicity, and make any required changes.

Configure a Derived Rate Definition

The next step is to create a rate definition that:

  • Has the Base Rate contributor type

  • Utilizes the Element rate definition you created previously

To create this rate definition:

  1. Start the Rate Definitions task.

    1. From My Client Groups, click Show More.

    2. Under Payroll, click Rate Definitions.

  2. Click Create.

  3. Select the Derived Rate category.

  4. Enter an effective date.

  5. Select your US LDG.

  6. Click OK.

  7. Specify the following.

    For this field

    Do this

    Name

    Provide a meaningful name for your rate definition

    Short Name

    Provide a short name for the rate definition

    Periodicity

    Select Annually

    Periodicity Conversion Formula

    Select Standard Rate Annualized

    Currency

    Select US Dollar

  8. Define a rate contributor.

    1. In Rate Contributors, click Create.

    2. Select the Base Rate contributor type, and click OK.

    3. Specify the following.

      For this field

      Select this

      Add or Subtract

      Add

      Employment Level

      Payroll Assignment

      Periodicity

      Annually

    4. Click Save and Continue.

  9. Click Submit.

Create a Time Card Element

You now need a time card element that utilizes the output from your Derived rate definition.

To satisfy this, create three Time Card elements.

  • Regular

  • Overtime

  • Overtime Premium

For example, to define the Overtime time card element:

  1. Start the Elements task.

    1. From My Client Groups, click Show More.

    2. Under Payroll, click Elements.

  2. Define an element with these values.

    • Standard Earnings primary classification

    • Overtime secondary classification

    • Time Card category

    • Default rate definition

    • Your Derived rate definition as the rate name

  3. Create element eligibility.

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