Define Payroll Elements for an Absence Accrual Plan

In this example, you want to define an absence element for a vacation accrual absence plan.

Based on your setup decisions, this procedure configures the following additional elements.

• Accrual element to process absence liability amounts

• Entitlement element to process payments for absence during vacation

• Discretionary Disbursement element to process disbursement of partial time accruals

• Final Disbursement element to process accrual disbursement when the absence plan enrollment ends

The name of the element is prefixed to each additional element.

Here's a list of the key decisions you make for this scenario.

Decision to consider	What you will use
What type of an absence are you transferring to payroll?	Accrual balances
Who is eligible to receive this element?	All workers
What units do you want to use for reporting calculations?	Days
Do you want the element to calculate absence liability?	Yes
Which rate should the calculate absence liability use?	Liability Rate
Does your absence plan enable balance payments when enrollment ends?	Yes
Which rate should the final disbursement payment use?	Final Disbursement Rate
Does your absence plan enable payment of partial accrual balances?	Yes
Which rate should the partial disbursement payment use?	Partial Disbursement Rate
How do you want to calculate deductions for paid absences for employees not requiring a time card? Reduce regular earnings by the amount of the absence payment so that the worker doesn't get paid twice? Select a rate to determine the absence deduction amount?	Reduce regular earnings by absence payment

Prerequisites

Before you begin, make sure you configured a rate definition to determine the monetary value of a unit of absence.

Depending on your enterprise, configure separate rates to calculate liability, discretionary disbursement, and final disbursement payments. You configure a rate definition using the Rate Definitions task.

Define an Absence Element

1. From My Client Groups, click Show More.

2. In Payroll, click Elements.

3. Click Create.

4. Complete the following fields.

   Field name	What you enter
   Legislative Data Group	Select your US legislative data group.
   Primary Classification	Absences
   Secondary Classification	Select an appropriate value for your legislation, such as Vacation.
   Category	Absence

5. Click Continue.

6. Complete the following.

   Field name	What you enter
   Name	Vacation Payment
   Reporting Name	Vacation Payment

7. In Absence Plan Details, complete the following.

   Field name	What you enter
   What type of absence information do you want transferred to payroll?	Accrual Balances and Absences
   What calculation units are used for reporting?	Days

8. Click Next.

9. In Accrual Liability and Balance Payments, complete the following.

   Field name	What you enter
   Calculate absence liability?	Yes
   Which rate should the liability balance calculation use?	Leave blank Note: The payroll process uses the employee's regular salary rate for the liability calculation.
   Does this plan enable balance payments when enrollment ends?	Yes
   Which rate should the final balance payment calculation use?	Final disbursement rate
   How do you want the payout amount to be taxed?	Regular
   Does this plan enable partial payment of the balance?	Yes
   Which rate should the discretionary disbursement use?	Discretionary disbursement rate
   Which taxation method should the discretionary disbursement payment use?	Regular

10. In Absence Payments, complete the following.

    Field name	What you enter
    How do you want to reduce earnings for employees not requiring a time card?	Reduce regular earnings by absence payment.
    Which rate should the absence payment calculation use?	Absence payment

11. Click Next.

12. Review the info you entered so far.

13. Click Submit to open the Element Summary page.

    The template generates all the related elements, balances, and formulas.

Define Element Eligibility

1. In Element Overview of the Element Summary page, select Element Eligibility.

2. Select Create Element Eligibility from Actions.

3. In Element Eligibility, enter Vacation Payment Open as the Element Eligibility Name.

   Leave the rest of the fields on the page blank.

4. Click Submit.

5. Click Done.

6. Search for the other elements prefixed with your absence element name.

7. Select each element in turn and repeat these steps on the Element Summary page to define eligibility for each element.