How Elements Hold Payroll Info for Multiple Features for the US

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

Here are some examples of how you can use elements.

What you want to manage	What elements you can define
Base pay	Annual salary basis Monthly salary basis Hourly salary basis
Absences	Absence payments Leave liability Discretionary disbursement Final disbursements
Benefits	Health care deductions Savings plan deductions Employee stock-purchase deductions
Time and labor	Regular hourly earnings Overtime earnings Shift earnings
Payroll calculations	Regular standard earnings Bonus earnings Taxation of federal income tax (FIT) Bankruptcy orders Child support orders Federal tax levies

For further info, see the following sections.

Base Pay Management

You must set up salary basis and payrolls before you hire employees. Use the Salary Basis task.

After 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 to each worker (hourly, monthly, or annual).

When a manager or compensation specialist enters a base pay amount for a worker, the payroll process:

1. Writes the amount to an element entry. It uses the element input value you associated with the worker's salary basis.

2. 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 info for payroll processing.

  • Payments for absent time during personal time off

  • Accrual disbursement at the end of absence plan year

  • Accrual disbursement when plan enrollment ends

  • Absence liability amounts

You can process the payments through standard payroll processing or use HCM extracts to transfer the info to a third-party payroll application.

For further info, see Human Resources Cloud Administering US Absences on the Help Center.

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 Labor

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 Labor, you run processes that 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 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.