Define Payroll Elements for Processing Absences
To calculate and process absence payments, you need to define Absence elements.
Defining an Absence element involves:
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Defining the element
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Completing the absence detail questions
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Completing the accrual liability and balance payment questions
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Completing the absence payment questions
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Submitting the element
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Defining element eligibility records and cost distributions
For further info, see Define Absence Elements for the US in the Help Center.
Define an Absence Element
Use the Elements task. Select the Absence primary classification and one of these secondary classifications.
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Maternity
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Sickness
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Vacation
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Other
Complete the Absence Detail Questions
The questions in Absence Details of the element template help determine the more detailed questions it asks later.
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Enter the calculation units to use when reporting the absence, such as on the payslip and statement of earnings.
Typically, select Days or Hours for reports that correspond to the units for your absence plan.
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Select the work units conversion rule to calculate the absence rate.
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Select the absence info to transfer to payroll based on the type of absence management plan.
This type of plan
Transfers this kind of info
Accrual
Accrual Balances
Accrual, Leave Donation, Compensatory
Accrual Balances and Absences
Qualification
Qualification Absences
No Entitlement
No Entitlement Absences
Complete the Accrual Liability and Balance Payment Questions
If you're going to transfer accrual balances, complete these questions.
Question |
Steps |
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Calculate absence liability? |
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Does this plan enable balance payments when enrollment ends? |
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Does this plan enable partial payment of balance? |
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Complete the Absence Payment Questions
Answer these questions on how you want to handle the absence payments.
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Select a method to reduce regular earnings if:
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Employees don't complete a time card
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You don't use time card entries as a basis for calculating pay
Value name
What it does
Reduce regular earnings by absence payment
Reduces regular earnings by the absence payment. The employee is paid the same gross amount as their regular salary.
Select rate to determine absence deduction amount
Identifies when the employee isn't due to be paid for the absence at the same rate as their regular earnings. In this case, the regular earning is reduced by 100% of the regular earnings. However, the absence payment rate would be a different rate, such as 50%.
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Select the tax method to use for the absence payment.
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Optionally, select a rate to calculate the absence payment.
If you have standard earnings and absence elements in the same payroll run that reduce regular earnings, the payroll calculation reduces earnings in this sequence.
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Using absence element entries
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Using any standard earnings elements that reduce regular earnings
The salary balance isn't reduced beyond 0.
Submit the Element
When you're finished with the questions, you submit the element. The template automatically configures a base pay element, balances, formulas, and calculation components.
It also configures indirect elements, depending on the options selected in the template to transfer absence info.
When transferring this info |
For these options |
It creates these indirect elements |
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Accrual Balances |
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Accrual Balances and Absences |
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Qualification Absences |
none |
Entitlement |
No Entitlement Absences |
none |
Entitlement |
Define Element Eligibility Records and Cost Distributions
Define element eligibility records for all the elements generated by the template, such as for your accrual, entitlement, discretionary and final disbursement elements.
If your enterprise calculates cost distributions, provide costing info for all the element eligibility records.
For example, for an accrual element:
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Define element eligibility records for the accrual, accrual results, accrual retroactive, and accrual retroactive results elements.
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Specify costing for the accrual results and retroactive results elements.
The costing process costs the change in the liability balance since the last payroll period, debits the expense account, and credits the liability account.