Define Payroll Elements for an Absence Accrual Plan

This example shows how to define an absence element for a vacation accrual absence plan.

Based on your setup decisions, this procedure configures these 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.

Note:

Each absence accrual plan will have its own, specific payroll element defined. The element you define for an absence accrual plan shouldn't be used across multiple plans. You can't map one element to multiple absence accrual plans.

This table summarizes key decisions for this scenario.

Decisions to Consider	In This Example
What type of an absence are you transferring to payroll?	Accrual balances
Who's 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

Before You Begin

Ensure that you configured a rate definition to determine the monetary value of a unit of absence. And depending on your enterprise 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. On the Elements page, click Create.

2. In the Create Element window, complete the fields as shown in this table.

   Field	Value
   Legislative Data Group	Select your legislative data group.
   Primary Classification	Absences
   Secondary Classification	Select an appropriate value for your legislation, such as Vacation.

3. Click Continue.

4. On the Create Element: Basic Information page, enter Vacation Payment in the Name and Reporting Name fields.

5. In the Absence Plan Details section, complete the fields as shown in this table. Use default values for fields unless the steps specify other values.

   Field	Value
   What calculation units are used for reporting?	Days
   Work Units Conversion Rule	Standard Rate Daily
   What type of absence information do you want transferred to payroll?	Accrual Balances and Absences

6. Click Next.

7. On the Create Elements: Additional Details page, in the Accrual Liability and Balance Payments section, complete the fields as shown in this table. Use default values for fields unless the steps specify other values.

   Field	Value
   Calculate absence liability?	Yes
   Which rate should the liability balance calculation use?	Liability rate.
   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 Payout Amount to be taxed?	Supplemental
   Absence Payout Process Mode	Process and pay with other earnings
   Does this plan enable partial payments of absences?	Yes
   Which rate should the discretionary disbursement use?	Discretionary disbursement rate.
   How do you want Cash out amount to be taxed?	Regular

8. On the Create Elements: Additional Details page, in the Absence Payments section, complete the fields as shown in this table. Use default values for fields unless the steps specify other values. For the purposes of this worked example, all fields are being entered, however, only required fields must be entered and others may be blank.

   Field	Value
   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.

9. Click Next.

10. On the Create Element: Review page, review the information that you entered so far.

11. Click Submit to open the Element Summary page.

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

Define Element Eligibility

1. In the Element Overview section of the Element Summary page, click the Element Eligibility node.

2. Click Create Element Eligibility from the Actions menu.

3. In the Element Eligibility section, enter Vacation Payment Open in the Element Eligibility Name text box. Leave the rest of the fields on the page blank.

4. Click Submit.

5. Click Done.

6. On the Elements page, search for the other elements prefixed with your absence element name.

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