Payroll Elements Used in Compensation
payroll elements will be linked to salary bases, individual and workforce compensation plans, and total compensation statements.
• The element linked to a salary basis is used to create element entries that pass salary amounts to payroll.
• The defined input value for the element linked to the individual compensation plan option is used to capture the award amounts as well as display any related details during the award process. The elements you use also determine costing.
• The element linked to a non-salary workforce compensation component is used to create element entries, such as for lump sum awards. You can pass stock awards to element entries or post them to the compensation stock table directly. The Transfer Data to HR process creates element entries for each worker who received an amount for the component linked to the element.
• The actual compensation displayed in total compensation statements is configured as compensation items. Payroll elements are one source that can be mapped to these items.
You can also use payroll elements to store custom worker-level data. You create an information element with multiple input values that hold data referenced or used in a calculation during a compensation cycle. You use a fast formula to display the element entries values in Workforce Compensation columns
Different Primary Classifications that can be used while creating elements
• For elements linked to salary bases, select Standard Earnings.
• For bonus or lump sum elements linked to individual or workforce compensation plans, select Supplemental Earnings.
• For worker savings and contribution deductions linked to individual compensation plans, select Voluntary Deductions or Pretax Deductions as appropriate.
• For elements used to store custom worker data, select Information. Also use this classification for stock awards.
If the payroll element last entry date is:
• Last Standard Earnings Date, the element entry is end-dated as of the assignment end date (i.e. termination date).
• Last Standard Process Date, the element entry is end-dated as of the last day of the pay period in which the assignment ends.
• Final Close, element entry is not end-dated. It is left open until the end of time or until it is manually end-dated.
Calculation Rules
Calculation Rule
The calculation rule for salary elements and elements linked to workforce compensation Compensation Amount columns must be Flat Amount. For percentages in individual compensation plans, the calculation rule should be Factor.
Default Periodicity
The default periodicity must match the salary basis frequency, or the frequency that a compensation award represents. For example, if the salary basis frequency is Annually, the element periodicity must be Annually. If the individual compensation award is a recurring monthly amount value, the element periodicity should be Monthly.
Periodicity Conversion Rule
Non-payroll customers should select Standard Rate Annualized. Global payroll customers should select the conversion rule that is appropriate for them.
Configuring Input Values
Based on the calculation rule of the payroll element, the application creates some input values automatically. The following table shows the calculation rules and the input values they create.
Calculation Rule
|
Input Value Created
|
Flat Amount
|
Amount, Periodicity, Full-Time Equivalent
|
Percentage
|
Percentage
|
Factor
|
Factor
|
Salary Elements
An Amount and Periodicity input value are required when used in a salary basis. If you use a primary classification of Standard Earnings, the application automatically creates the periodicity input value. If you use a primary classification of Information, you must create the Periodicity input value manually.
Bonus or Lump Sum Elements
The Amount input value is created automatically, identified as the primary input value, and allows user entry. You can attach this element to workforce compensation plan component or an individual compensation plan option without additional configuration.
If you do not use the Amount input value, then you must mark whichever input value you link to your plan option as the primary input value in the Special Purpose field and should allow for user entry. The application creates element entries for the primary input value only. The value of the Special Purpose input value is also displayed in Other Compensation table when you submit an individual compensation award and in compensation history.
You must define separate payroll elements for each workforce compensation component and each individual compensation plan option. It is not possible to link the same element with different input values to different components or options within the same plan.