Define Absence Elements for the US

To calculate and process absence payments, you need to define Absence elements.

When you define them, consider the following.

• What type of absence info do you want transferred to payroll

• What kinds of elements you can use

• How to define an absence element

• What indirect elements the template creates

• How you set element eligibility

• How you cost the element

• How you link the element to the absence plan

How Absence Info Is Passed to Payroll

This describes what happens when you select a specific type of absence info to transfer to payroll.

Type of absence info	What it's for	Examples
Accrual Balances	Used for tracking purposes and maintain time-off balances for employees based on certain criteria.	Select this option for a vacation accrual plan that isn't processed through payroll. The Statement of Earnings (SOE) wouldn't include this leave.
Accrual Balances and Absences	Used tracking purposes to maintain time-off balances, but they have an absence payment component related to the accrual.	Select this option for a vacation accrual plan that's processed through payroll. The SOE would show this leave separately.
Qualification Absences	Typically triggered by an event, such as having a baby.	Select this option for a maternity plan that's processed through payroll. The SOE would show this leave separately.
No Entitlement Absences	Usually for tracking unpaid absences, and there is no accrual balance maintained.	Select this option for a no entitlement leave plan that's processed through payroll. The SOE would show this leave separately.

What Kinds of Elements Can You Use

An absence plan can support these kinds of elements.

Element Type	Description
Basic Absence Earnings	This element is used for the regular payment of an absence, such as vacation or PTO time. Also use this for payment of longer periods of absences, such as a maternity leave or short-term disability.
Absence Discretionary Disbursement Earnings	Some absence plans support discretionary disbursement for unused absence balances. You can elect to pay the discretionary disbursement by answering Yes to the partial payment of balance question when creating your base absence element. Select which payment rate and which taxation method to use with this discretionary payment.
Absence Final Disbursement Earnings	Some absence plans permit final disbursements or pay out at employment termination. Elect to pay the final disbursement by answering Yes to the enable balance payments when enrollment ends question when creating your base absence element. Select which payment rate and which taxation method to use with this final payment.
Unpaid Absences	When defining the element for any unpaid absence attached to an absence plan, select the following in the element template: Select No Entitlement Absence when transferring absence info to payroll. Select Select rate to determine absence deduction amount Leave the following rate fields blank. Rate to Determine Absence Deduction Amount Which rate should the absence payment calculation use? By leaving these blank on a No Entitlement Absence, the payroll process reduces the salary by the regular pay rate of the employee. This creates the unpaid absence. The unpaid earnings appear on the payslip and statement of earnings.

How You Define the Absence Element

The options you select when you define the absence element determine which indirect elements, balances, formulas, and calculation components the template generates.

For further info, see Define Payroll Elements for Processing Absences for the US in the Help Center.

To create an absence element:

1. From My Client Groups, click Show More.

2. In Payroll, click Elements.

3. Click Create.

4. Select a US legislative data group (LDG).

5. Select Absences as the primary classification.

6. Select a secondary classification based on the type of absence you're creating.

   • Maternity

   • Sickness

   • Vacation

   • Other

7. Click Continue.

8. Enter the following.

   Field name	How you use it
   Name	Name of the absence element.
   Reporting Name	Name of the absence element as displayed on reports.
   Description	Description of the absence element.
   Effective Date	Effective date of the absence element.
   Input Currency	Currency of the absence element.

9. Select the calculation units.

   Note:

   If you select Days, and the absence payment for this element is subject to overtime rules, you must:

   1. Create a fast formula for conversion to hours.

   2. Select the work units conversion rule related to these calculation units.

10. Select the types of absence info that you want transferred to payroll.

    • Accrual Balances

    • Accrual Balances and Absences

    • Qualification Absences

    • No Entitlement Absences

11. Click Next.

12. Enter the following additional details.

    1. Select the appropriate absence payment option for reducing regular earnings for salaried employees.

       Payment option	How you use it
       Reduce regular earnings by absence payment	Does not require a rate definition.
       Select rate to determine absence deduction amount	Select this option if your absence: Is at a different payment rate than your salary reduction In this case, use the associated fields to select the rates to set the following for the absence calculation. Absence deduction amount Absence deduction rate For further info, see Set Absence Payment Rates for the US in the Help Center. Is an unpaid absence In this case, you must configure that unpaid absence. For further info, see What Kinds of Elements Can You Use above.

    2. Select the absence payment rate.

       Leave blank if you're using the base rate.

    3. Select how you want the absence payment to be taxed.

    4. Select whether to calculate the absence liability.

       If you select Yes, do one of the following.

       • Select the liability rate you defined through the Rate Definitions task.

       • Provide an empty value to use the rate calculation based on the basic salary.

    5. Select the appropriate balance payment options.

       For this question	What you do
       Does this plan enable balance payments when enrollment ends?	Select Yes to configure a final disbursement element and to maintain balances for the disbursement hours and payments. Select a rate to use for the calculation. Leave blank to use the basic salary rate. Select the taxation method.
       Does this plan enable partial payment of balance?	Select Yes to configure a discretionary disbursement element and to maintain balances for disbursement hours and payments. Select a rate to use for the calculation. Leave blank to use the basic salary rate. Select the taxation method.

    6. Select whether this absence is subject to overtime calculations.

13. Click Next.

14. Review the options you selected, and then click Submit.

When you define the absence element, the Elements task also creates the required indirect elements, balances, formulas, and calculation components.

If you have standard earnings and absence elements in the same payroll run that reduce regular earnings, the payroll calculation reduces earnings in this sequence.

1. Using absence element entries

2. Using any standard earnings elements that reduce regular earnings

The salary balance isn't reduced beyond 0.

What Are the Indirect Elements for Absences

When you submit the element definition, the template creates a base and retroactive pay element, as well as related balances, formulas, and calculation components. It also creates related elements, such as results and calculator elements.

The template also creates additional elements, depending on the options selected in the template to transfer absence info, as shown here.

Element name	What they do
<Absence name>	This is the element you created for the absence plan.
<Absence Name> Accrual <Absence Name> Accrual Calculator <Absence Name> Accrual Results	These indirect elements: Get absence accrual info from Oracle Fusion Absence Management Process liability
<Absence Name> Entitlement <Absence Name> Entitlement Calculator <Absence Name> Entitlement Results	These indirect elements: Get absence accrual info from Oracle Fusion Absence Management Process absence payments and deductions
<Absence Name> Entitlement Retro	This indirect element processes absence payments and deductions during retroactive processing.
<Absence Name> Discretionary Disbursement <Absence Name> Discretionary Disbursement Calculator <Absence Name> Discretionary Disbursement Results	These indirect elements: Get partial payment info from Oracle Fusion Absence Management Process these disbursements
<Absence Name> Discretionary Disbursement Retro	Indirect element used to process partial payment disbursements in retroactive processing.
<Absence Name> Final Disbursement <Absence Name> Final Disbursement Calculator <Absence Name> Final Disbursement Results	These indirect elements: Get final payment info from Oracle Fusion Absence Management, such as upon employee termination Process these disbursements
<Absence Name> Final Disbursement Retro	This indirect element processes final payment disbursements during retroactive processing.

How to Set Element Eligibility

You must create element eligibility for the base, accrual, retroactive, and entitlement elements. For the elements you define through the element template, do this during element definition. For the indirect elements automatically generated, use the Elements task.

1. Search for and select the appropriate element.

2. In Element Overview, select Element Eligibility.

3. Select Create Element Eligibility from the Actions menu.

4. Define the element eligibility.

5. Click Submit and Done.

How to Cost Absence Elements

You must create costing element eligibility if you post absence payments to the general ledger. You must create costing element eligibility for these payment elements.

• Base absence entitlement, entitlement results, and entitlement retroactive elements

• Discretionary disbursement, disbursement result, and disbursement retroactive elements

• Final disbursement, disbursement result, and disbursement retroactive elements

Determine how to cost element eligibility records, including which type of costing to apply and which input value to cost. Determine which account numbers to specify for the cost account segments, such as the natural account, and which offset account balances the cost account.

For further info, see Global Human Resources Payroll Costing Guide (1918574.1) on My Oracle Support.

How to Link to the Absence Plan

For the absence plan to share its absence payment info with the payroll process, you have to link it to your absence element.

When you create the plan:

1. Select the absence element in Entries and Balances on the Create Absence Plan page.

2. Select Transfer absence payment info for payroll processing.