1. Administering Absences for the United States
  2. Set Up Absence Plans

Set Up Absence Plans

The absence plan helps the payroll process calculate absence payments by providing important eligibility and entitlement info.

This includes:

  • How you create the plan

  • How to share absence information with the payroll process

  • How to enroll employees in the plan

Create Absence Plans

Use the Absence Plan task to create absence plans.

Part of creating a plan involves defining your rules for accruals and entitlements, and there are multiple strategies involved. For further info, see Global Human Resources Cloud Implementing Absence Management on Oracle Cloud Help Center.

Note: You must have the role of Human Resources Manager to perform these operations.

For further info, see the following in the Help Center:

  • Build Accrual Band Matrixes for the US

  • Create Qualification Bands

  • Define Absence Plans

  • Create Absences for California Sick Pay Rates

Absence Plans

Absence plans determine the rules for defining eligibility, accruing leave time, and receiving payments during the absence period. You can select from the following.

Plan Type

Description

Accrual

Calculates time earned by an employee on a periodic basis, including maximum amounts of accrued time and maximum amounts of time that can be carried forward to the next term.

Agreement

Time agreed upon between the employer and employee in accordance with statutory rules.

Compensatory

A variation of an accrual plan where units worked form the basis of the accrual. You can offer this type of plan can be for work outside of a regular schedule instead of paying overtime.

No Entitlement

A plan doesn't have accrual or entitlements defined. Commonly used to track unpaid absences.

Qualification

Employee's entitlement to time off isn't earned on a periodic basis but is granted to them. Commonly used for maternity, jury duty, military, and so on.

Plan Rules

Plan rules define a person's eligibility for the plan, and the amount of time they receive.

Plan Rules

Description

Terms and Frequencies

Identifies the period of time during which employees accrue time. Term types include:

  • Accrual Plans and No Entitlement Plans

    Calendar year:

    Accrual term starts on the month, day, and year you select and then restarts the next year on the same day

    Anniversary year:

    Accrual term starts on the hire date and then restarts on the employee's anniversary

  • Qualification Plans

    Absence duration:

    Determines the duration of the plan.

    Calendar year:

    Accrual term starts on the month, day, and year you select and then restarts the next year on the same day

    Rolling backward:

    Calculates the absence entitlement based on the total duration of absences for a specific time period that precedes the absence start date.

    Rolling forward:

    1. Calculates absence entitlements based on the first date an employee's absence begins.

    2. Calculates the end date by adding the term duration to the start date.

Plan eligibility

Associates an eligibility profile to the plan to determine what workers are enrolled in that plan. An eligibility profile defines criteria used to determine whether a person qualifies for certain absence plans.

Enrollment and Termination

Determines:

  • When to enroll an employee in the plan

  • When to unenroll a terminated employee

Waiting periods

For an accrual plan, defines whether an employee accrues time only after a specified period.

Vesting periods

For an accrual plan, defines if an employee can use any accrued time after a specified period.

Plan limits

For an accrual plan, identifies the type of limits:

  • Carryover

    Maximum amount of time an employee can carry over to the next cycle.

  • Ceiling

    Maximum amount of time an employee can accrue.

Transferring Absence Information to Payroll

Payroll requires specific information to process absence payments. To process absence payments during payroll processing:

  1. Use Entries and Balances on the Absence Plan task to configure your absence plan to pass the absence information to payroll.

  2. Select Transfer absence payment information for payroll processing.

  3. Select the absence element you defined previously during the Creating Absence Elements steps.

Share Absence Information with the Payroll Process

The payroll process requires specific information to process absence payments. To process absence payments during payroll processing, you must configure your absence plan to pass the absence information to payroll.

You do this with Entries and Balances on the Absence Plan task.

  1. Select the Transfer absence payment information for payroll processing option.

  2. Select the absence element you defined previously during the Creating Absence Elements steps.

Enroll the Employees

You must enroll your employees in the absence plan before you can record their absences.

For Accrual, Agreement, Compensatory, and Qualification plans, if you created the plan before the employee being hired, the hiring process automatically enrolls them, assuming they meet the plans' requirements. If you created the plan after the employee was hired, you manually enroll them.

Use the Absences task to enroll employees in the absence plan or verify automatic enrollment into a plan.

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