How Payroll Elements Hold Information for Multiple Features

Use Payroll Elements to determine the payment of base pay, benefits, absences, and other earnings and deductions. Associate payroll elements with salary bases, absence plans, and the benefits object hierarchy to determine how you will use those elements.

This table provides some examples of how you can use payroll elements.

Payroll Element Usage	Examples of Payroll Elements
Base Pay Management	Annual Salary Basis Monthly Salary Basis Hourly Salary Basis
Absence Management	Absence Payment Leave Liability Discretionary Disbursement Final Disbursement
Benefits	Health Care Deduction Savings Plan Deduction Employee Stock Purchase Deduction
Time and Labor	Regular Hourly Earnings Overtime Earnings Shift Earnings
Payroll	Regular Standard Earnings Bonus Earnings Tax Deduction Involuntary Deduction

Base Pay Management

To manage base pay, you attach an earnings element to each salary basis (hourly, monthly or annual) for each worker. When a manager or compensation specialist enters a base pay amount for a worker, the application writes the amount to an element entry. The application does this by using the element input value associated with the worker's salary basis. Payroll processing 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. You can associate an absence element with an absence plan to transfer this information for payroll processing:

• Payments for absent time, for example, during maternity or long term sickness.

• Accrual disbursement at the end of absence plan year

• Accrual disbursement when plan enrollment ends

• Absence liability amounts

You can process the payments in Oracle Fusion Global Payroll or use HCM extracts to transfer the information to a third-party payroll application for processing.

Benefits

Attach payroll 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 payroll 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 Oracle Fusion Global Payroll, you define earnings and deduction elements, such as bonus and overtime earnings and involuntary deductions. These elements incorporate all components required for payroll processing, including formulas, balances, and formula result rules.