Set Up Rate Definitions

Before creating an element using the element template, the rate definition for the absence payment needs to be created. The same rate can be used for payment and deduction.

To enable the payment of the absence in payroll, you need to define rate definitions. When creating an absence plan, you need to specify the payment rate that's applicable to this plan, which can either be derived by a formula or based on a rate definition.

You can use a single rate for all the statutory absence plans. Also, you might also need to create one or more rates to calculate the deduction from the salary. This is optional and depends on your policy regarding payment and deduction for absence. A placeholder rate must be associated with the absence plan and the element, to trigger the calculation of the statutory rate.

You need to create Rate Definitions of category element for each earnings element. This is needed to feed the existing Absence Normal Daily Rate rate definition as a contributor. After this step, you need to feed these Rate Definitions as Rate Contributors to the existing Rate Definition Absence Normal Daily Rate.

Absence Normal Daily Rate

To create a new absence element:

Navigation: My Client Groups > Absences > Formulas and Rates > Rate Definitions

1. On the Rate Definitions page, in the Create Rate Definition window, select 'Element' as the Category, an effective start date that covers any absences you wish to enter, the appropriate Legislative Data Group, 'Amount' as the Storage Type and the appropriate element.
2. In the Basic Details section, enter the Name Code and Short Name for the definition and keep the default values for the other fields.
3. In the Returned Rate Details section, in the tab Returned Rate Details, set Periodicity to 'Workday' and Periodicity Conversion Formula to 'Periodic Work Schedule Rate Annualized'.
4. Click Actions > Edit > Correct.
5. In the Rate Contributor section that appears, set the Periodicity to 'Workday'.
6. Save and submit the details.
7. On the Rate Definitions page, search for and select Absence Normal Daily Rate as the Name with an effective start date that covers any absences you wish to enter. Select the appropriate Legislative Data Group.
8. In the Calculation section, add the rate contributor that you’ve created earlier.
9. Select Contributor Type as 'Rate Definition'.
10. In the Rate Contributor section, select a Name (for example: bonus, allowance, regular earnings) and Periodicity.
11. Save and submit the details.

Absence Average Earnings Rate

After setting up the rate definition, you need to populate the relevant balance with the appropriate balance feeds. The value assigned to a balance during processing is decided by the feeds defined for the balance.

1. Search for and select the relevant balance Pay for Absence Average Earnings to set up the balance feeds.
2. In the Balance Feeds by Element section, add the element name, classification, employment level and effective dates.
3. Save and submit the details.