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 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
-
From My Client Groups, click Show More.
-
In Payroll, click Elements.
-
Click Create.
-
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
-
Click Continue.
-
Complete the following.
Field name
What you enter
Name
Vacation Payment
Reporting Name
Vacation Payment
-
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
-
Click Next.
-
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
-
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
-
Click Next.
-
Review the info you entered so far.
-
Click Submit to open the Element Summary page.
The template generates all the related elements, balances, and formulas.
Define Element Eligibility
-
In Element Overview of the Element Summary page, select Element Eligibility.
-
Select Create Element Eligibility from Actions.
-
In Element Eligibility, enter
Vacation Payment Open
as the Element Eligibility Name.Leave the rest of the fields on the page blank.
-
Click Submit.
-
Click Done.
-
Search for the other elements prefixed with your absence element name.
-
Select each element in turn and repeat these steps on the Element Summary page to define eligibility for each element.