Create Earnings Element

This example shows how to use the element template and create a regular earnings element.

Note: Set the Product Offering to Payroll before creating the Earnings template.

Use the Elements task in the Payroll section of My Client Groups to create the element and set the element eligibility.

To create an earnings element:

Navigation: My Client Groups > Show More > Payroll > Elements

1. On the Elements page, select Create.

2. Complete these fields, as shown in this table:

   Field	Value
   Legislative Data Group	Select an appropriate LDG
   Primary Classification	Earnings
   Secondary Classification	-
   Category	Standard

3. Select Continue.

4. On the Basic Information page, complete the fields, as shown in this table:

   Field	Value
   Name	Enter a name, example: Standard Earnings1
   Reporting Name	Enter the name that you want to display on reports for this deduction payroll element
   Effective Date	Enter an early date so that the payroll element is available for use immediately
   Input Currency	Indian Rupee
   Should every person eligible for the element automatically receive it?	No
   What is the earliest entry date for this element?	First Standard Earning Date
   What is the latest entry date for this element?	Last Standard Earning Date An element's latest entry date decides how element entries process after a person leaves from organization or transfers to another payroll. This is before a pay period end date. If you select this date, then you need to enable proration, so the calculation will be correct if a person leaves
   At which employment level should this element be attached?	Assignment Note: Assignments are associated with jurisdictions, which determine the required tax calculations
   Does the element recur each payroll period, or does it require explicit entry?	Recurring
   Process the element only once in each payroll period?	Yes
   Can a person have more than one entry of the element in a payroll period?	No
   Process and pay element separately with other earnings element?	Select one of the options: Process and pay with other earnings Process separately, but pay with other earnings Process separately and pay separately

5. Select Next. On the Additional Details page, respond to the questions, as shown in this table:

   Field	Value
   What is the calculation rule?	Flat amount
   Is this element subject to proration?	Yes
   Proration Group	Select a proration group
   Proration Rate	Select a proration rate
   Proration Units	Workday
   Is this element subject to retroactive changes?	No

6. In the Earnings Rules, select the Earnings Type as Basic Salary for creating the basic salary element.

7. In the Earnings Rules, select the Earnings Type as Others to create other types of earnings element that are taxable.

8. Answer the India specific earnings questions to create the required balance elements.

   Question	Value
   Does this element determine the Employee State Insurance eligibility?	Select Yes or No as required
   Does this element contribute to Employee State Insurance computation base salary?	Select Yes or No
   Does this element contribute to Provident Fund computation base salary?	Select Yes or No
   Does this element contribute to Company Accommodation valuation salary?	Select Yes or No

9. Select Next twice. Verify that the information shown on the Create Element: Review page is correct.

10. Select Submit.

On the Element Summary page, update the newly created element details.

1. In the Element Overview section, select Element Eligibility.
2. Select Actions and then Create Element Eligibility.
3. In the Element Eligibility Name field, enter a name for the eligibility record.
4. In the Eligibility Criteria section, select any criteria to restrict who can pay this deduction. Otherwise, select All payrolls eligible.
5. Select Submit. All the associated balances, feeds, input values, formulas, and related elements required for payroll processing gets created automatically.

Results:

By default, whenever an Earnings element of earnings type: Basic Salary is created, the below balances are automatically fed:

• Termination allowances

  • Gratuity Computation Salary

  • Leave Encashment Computation Salary

The Retrenchment Compensation Computation Salary balance requires as input the Pay value of the Results element of the earnings element.

The PT Computational Salary for <State/Panchayats/Corporation> balance requires as input the Pay value of the Results element of the earnings element.

The PT Computational Standard Salary for <State/Panchayats/Corporation> balance requires as input the Standard value of the Results element of the earnings element. For more information, see Balances in Professional Tax Calculations.