Set Up Mark Time Allowances

Create a new flat amount earnings element for your mark time allowance.

To create a new flat amount earnings element:

1. Using the Elements task, click Create to create a new Regular Earnings element (standard category).
2. Review the element details, adding element eligibility and further information in the UK Element Information region. Note: You must select Allowance in the Element Type field. Otherwise, the allowance is not identifiable as liable for reporting.
3. Create a new user-enterable monetary input value and name it Protected Pay. You use this to record the employee’s protected pay amount.
4. Review the processing priority and edit if required. It must be later than other earnings elements but earlier than the absence element.

Create Mark Time Rate Definition - Derived Rate

Create a new rate definition for mark time. It must be a derived rate and its contributor is the mark time element’s primary balance:

1. Using the Rate Definition task, click Create to create a new (derived rate) rate definition. Reporting Required must be selected. Calculate Live Rates must be unselected. (However, it will not cause issues if left selected.)
2. Enter the contributor rules as shown:

   Mark Time Rate Definition Contributor Rules

   FIELD	VALUE
   Contributor Total Periodicity	Calendar Month
   Contributor Type	Balance
   Contributor Name	Mark Time element primary feed
   Contributor Periodicity	Leave blank

Create Calculation Value Definition

Create a calculation value definition for the mark time rate definition:

1. Using the Calculation Values Definition task, click Create to create a new calculation value definition. The calculation type must be Rate Definition.
2. Select Effective Date in the Retrieval Date field.
3. Create a range of values in the From Value and To Value columns and select the mark time rate definition to link it to the calculation value definition.

Create Calculation Factor

Create a calculation factor for the mark time element and link it to the calculation value definition created previously:

1. Using the Elements task, search for the flat amount allowance element.
2. Select Calculation Factors and click Create to create a new calculation factor.
3. Enter the details as shown:

   Calculation Factor for Mark Time Allowance Element

   FIELD	VALUE
   Calculation Step	Rate Amount
   Calculation Value Definition	Mark Time Calculation Value Definition

Edit the Mark Time Allowance Earnings Formula

Using the Fast Formulas task, edit the earnings formula for the mark time allowance element so that the Subject to Protected Pay earnings balance is compared with the Protected Pay input value and the calculated difference is returned as the Pay Value.

Create Absence Payment Rate Definition – Derived Rate

Open the existing absence payment rate definition, or create a new rate definition (category: Derived Rate):

• The return rate periodicity for the element definition must be annual.
• The rate contributions are all the earnings rate definitions that are liable for absence payment (or deduction). This must include the mark time allowance.

Create Balance – Subject to Protected Pay

Create a new periodic balance. This balance comprises all earnings that can contribute to an eligible employee’s protected pay (including their mark time allowance).

1. Using the Balance Definitions task, create a new balance, for example “Subject to Protected Pay”.
2. Select the Payroll Relationship Period to Date balance dimension and feed the balance with the regular earnings that will contribute towards an employee’s protected pay (salary, allowances, etc).

Create Element Entries

Record the agreed protect pay amount for the eligible employee as an element entry. Select the mark time allowance and enter the amount in the Protected Pay input value.

During payroll processing, this value is compared against the “subject to protected pay” earnings balance. Then it is used to calculate the Pay Value of the mark time allowance for the period.

Note: If there are subsequent changes to an employee’s protected pay, for example, as the result of a pay award, you must enter this manually on the element entry.

Next, run the Generate HCM Rates Process after running your payroll.