How Element Classification Components Work Together

When you create an element, you select a primary classification, such as Involuntary Deductions, and optionally a secondary classification, such as Child Support.

The classifications, which vary by country or territory, control theelement template questions you answer to define the element. An element may automatically inherit subclassificationsfrom its primary classification. You can optionally select additional subclassifications for an element to control thebalances it feeds.

Primary Classifications

Primary classifications meet the legislative requirements of your country or territory, so you can't change them.

In a payroll department, the classifications control processing, including the sequence in which elements are processed and the balances they feed.

Secondary Classifications

Use secondary calculations to manage wage basis rules for deductions and taxes. You can't remove or change any predefined secondary classifications. In some countries or territories, you can create your own secondary classifications.

Subclassifications

Subclassifications provide a way to feed balances. Elements can have only one primary and secondary classification, but multiple subclassifications. You can create subclassifications or use predefined ones. You can specify that a subclassification automatically applies to every element in the primary classification.

Tip: Each subclassification belongs to one primary classification only. If you reuse a subclassification name under different primary classifications, it's treated as a separate subclassification. And you must create separate balance feeds for each subclassification.

Costing

Each primary classification includes these costing rules:

Rule	What It Does
Allow Costing	If set to Yes, you can select any costing option for element eligibility records.
Allow Distribution	If set to Yes, you can create distribution groups with elements in this classification. For example, you can create a distribution group with all of the earnings elements. And prorate tax expenses proportionately over the cost centers in which the wages were earned.

Frequency Rules

If frequency rules are enabled for a primary classification, you can use them on an element if you don't want to process it each period. For example, you can set frequency rules to process element entries on the first and third weekly payroll periods of each month. The default frequency rule is to process each period.