Set Absence Payment Rates

In situations where you want the payment to be different than regular salary, you can select a different rate for the salary reduction amount than the payment amount.

In this example, you want to calculate an hourly employee's absence rate when that rate is different from their base rate. The employee has an hourly wage of $20, and you want to pay them an absence rate of 75% of the base ($15).

Set an Absence Payment Rate of 75 Percent

In this example, you want to pay sick pay to your salaried nonexempt employees at 75% of the normal rate.

  1. Define an Element rate definition, and mark this rate definition as a base rate.

    1. Start the Rate Definitions task.

    2. Click Create.

    3. Select the Element category.

    4. Enter an effective date, such as 2010-01-01.

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

    6. Select Amount as the storage type.

    7. For the Element Name, select an appropriate salary element.

      Eligible elements are:

      • Standard Earnings primary classification

      • Have Regular secondary classification

      • Attached to a salary basis

    8. Click OK.

    9. Enter the following basic info.

      Field name

      What you enter

      Name

      Name of the rate definition

      Short Name

      Short name of the rate definition

      Base Rate

      Select the box

      Periodicity

      Annually

      Periodicity Conversion Formula

      Standard Rate Annualized

      Currency

      US Dollar

    10. Click Submit.

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

    11. Ensure this periodicity matches the rate definition's periodicity (for this example, annually).

  2. Define a Derived rate definition.

    This rate definition will have a Base Rate contributor type, which uses the Element rate definition you defined in the previous step.

    1. Start the Rate Definitions task.

    2. Click Create.

    3. Select the Derived Rate category.

    4. Enter an effective date, such as 2010-01-01.

    5. Select your US LDG.

    6. Click OK.

    7. Enter the basic info.

      Field

      Value

      Name

      Name of the rate definition

      Short Name

      Short name of the rate definition

      Periodicity

      Annually

      Periodicity Conversion Formula

      Standard Rate Annualized

      Currency

      US Dollar

    8. In Rate Contributors, click Create.

    9. Select the Base Rate contributor type.

    10. Click OK.

    11. Enter the following.

      Field

      Value

      Add or Subtract

      Add

      Employment Level

      Payroll Assignment

      Periodicity

      Annually

      Factor Rule

      Value

      Factor Value

      0.75

    12. Click Save and Continue.

    13. Click Submit.

    For further info, see Overview of Absence Rate Definitions for the US in the Help Center.

  3. During absence element definition:

    1. For How do you want to reduce earnings for employees not requiring a time card, choose Select rate to determine absence deduction amount.

    2. For the Rate to Determine Absence Deduction Amount, leave this field blank. By leaving this field blank, the payroll calculation automatically reduces the salary by the regular pay rate.

    3. For Which rate should the absence payment calculation use, select the derived sick pay rate you configured previously (75% rate).

    For further info, see Define Absence Elements for the US in the Help Center.