Use Time Definitions for Severance Pay

This example illustrates how you can set up a user-defined time definition and as a payroll administrator, how you can associate it with elements so that you can extend the latest entry date for severance payments to employees.

Scenario

The InFusion Corporation makes severance payments, including regular salary, and car allowance. For most terminated employees, these payments should end on the termination date. However, you must be able to make payments for employees who receive severance pay.

Element Duration Dates

When you create an element, you select the latest entry date. The options are predefined time definitions: last standard earnings date, last standard process date, or final close date. Typically, standard earnings elements use the last standard earnings date. However, this option doesn't support severance payments because you can't have a last standard earnings date that's beyond the termination date.

To support severance payments, create a user-defined time definition based on last standard earnings date and select it as the latest entry date for payments after termination. On the payroll relationship record of terminated employees, the value of the user-defined time definition is the termination date by default, but payroll administrators can edit it to make payments for certain employees.

Resulting Setup

To implement a user-defined time definition for this scenario, your implementor must complete the following setup during implementation:

1. Use the Time Definitions task under Payroll in My Client Groups on your Home page, to create a time definition.

   This table lists field names and their respective values for creating a user-defined time definition.

   Field	Value
   Type	User-defined date
   Name	Last Earnings or Severance Date
   Short Name	LastEarnSevDate
   User-Defined Date	Last Standard Earnings Date
   User-Defined Date Usages	Assigned payroll end date Element entry end date Payroll assignment end date Payroll relationship end date Payroll term end date

   This creates a time definition based on the last standard earnings date.

2. Use the Elements task to create the Regular Salary, Car Allowance, and Alimony elements.

3. In the Durations area, select Last Earnings or Severance Date as the latest entry date for the element.

To extend the payment date for a terminated employee, complete these steps.

1. Use the Payroll Relationships task, and search and select the terminated employee.

2. In the Payroll Details area, select the assignment.

3. In the Element Duration Dates area, in the row for the Last Earnings or Severance Date time definition, change the End Date value to the desired final entry date for payments.

   For example, add 6 months of severance pay for an employee who was terminated effective 20 November 2012. Change the End Date value of the Last Earnings or Severance Date time definition to 21 May 2013.

   The employee's element entries for the Regular Salary, Car Allowance, and Alimony elements end on this date.