Sunday, 24 September 2017

FUSION HCM PAYROLL ELEMENTS

Complete details about the Fusion HCM PAYROLL Elements :

Elements:
Elements are building blocks of Payroll that help determine the payment of base pay, benefits, absences, and other earnings and deductions.
Elements are the means of communicating payment and distribution information to payroll applications.
Apart from within Payroll(for bonuses, overtime earnings, etc.), 
Compensation Benefits (on the basis of the base pay) and 
Absence Management (for absence payments like in the case of maternity leaves and other long leaves).
Element Classification:
They are a mechanism by which you classify the Element as Earnings or Deductions and defines a default processing priority for the element in payroll runs.
Primary Classifications:
Primary classifications meet the legislative requirements of your country or territory, so you can't change them.
Secondary Classifications:
Secondary classifications are subsets of the primary classifications. Use them 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 createyour own secondary classifications.
Sub classifications:
Sub classifications provide a way to feed balances. Elements can have only one primary and secondary classification, but multiple sub classifications.
Frequency rules determine which pay periods a recurring element should be included in the payroll process. 
For example, a monthly deduction might be processed in the third period of the month for employees paid weekly and in the second period of the month for employees paid on a semimonthly basis. This region identifies if frequency rules have been enabled for this classification.
Process Order:
These fields define the priority for element processing. Elements with lower numbers are processed first.
Costing:

To track the labor costs of payroll run results, identify the element classifications the application can cost. You can also establish whether the run results for the element are used to distribute the costs over a set of elements in a distribution group and whether the application debits or credits the cost account when posting the costs.


Primary Classifications Elements
Secondary Classification Elements
Explanation
Non-Payroll Payments 
Expense Reimbursement
These are not actually earnings, hence not taxable. These appear separate on earning report, as these expenses are just being reimbursed, not an additional payment.

Employer Liabilities
Benefits, Overhead
These are the non tax liabilities to the employer that gives health coverage benefits and usable things to the employees like a safety harness.

Employer Taxes

Federal tax, state tax, Local tax 

The employer taxes.

Tax Deductions

Federal tax, state tax, Local tax

The employee taxes for the Country or state or even local taxes come under these.

Supplemental Earnings

Dismissal Payments, Educational Assistance, Deferred Compensation Plans, Jury Duty Pay, Moving Expense Reimbursement, Pensions/ annuities, Awards n Prizes, Bonuses, Commissions, cafeteria Plans, Deceased Employee Wages, Sick Pay, Travel Expense Reimbursements, Vacation Pay

The special type of earnings that one receives, along with the Earnings. Like Bonus, awards etc. Even though these are type of earning, these are additional cash to the employee, other than the ones entitled. 

Voluntary Deductions

 N/A

These are the deductions that are done as part of any loan payment / insurance premium etc.

Earnings

Regular, Overtime , Premium, Shift Pay, Student Earnings

Earnings based on the hours worked. The salaries, Overtime etc are the direct result of the labour, and termed as Earnings.

Pre-Tax Deductions

differed Comp 401K, Health care 125, dependent care 125

The deductions that happen before taxes are applied. Like Health care and retirement plan premiums / rates. 

Information

Absence Hours, Straight-Time Overtime Hours, Tax Balance, Labour hours, Regular Hours

These elements are not monetary types. They just hold the counts for reporting purposes.

Imputed Earnings

Group Term Life Insurance, Personal Use of Company Car, Non-Cash Awards

The Non Cash types of earnings are listed as Imputed Earnings. We’ll learn more about these in Advanced benefits.

PTO Accruals

Vacation, Sick

These are the Paid Time Off (PTO) accrued by the employee. Usually enterprises give the employees an amount of days to accrue once s/he completes a month / year as an employee. Those vacations are paid ones. So the employee keeps gathering them and uses them whenever s/he needs them. Those accruals are stored with PTO accruals.

Tax-credit

 N/A

These are the credits that are paid back to the employees as part of some accreditations.

Involuntary Deductions

Garnishments, Bankruptcy order, Federal Tax Levy, State Tax Levy, Local Tax Levy, Child Support Order, Spousal support order, Alimony, School Loan, Credit Debt, Employee requested payments

The Involuntary deductions where the employees pay the amount based on some Alimony or by court order or by any third party garnishment orders.




Decision to Consider
In This Example
What is the primary classification?
One of these three choices:
  • Standard Earnings
  • Supplemental Earnings
  • Voluntary Deductions
What is the secondary classification?
This item is optional. The available choices vary based on the selected primary classification.
  • Standard Earnings: Regular, Regular Not Worked
  • Supplemental Earnings: Bonus
  • Voluntary Deductions: Leave blank
At which employment level should this element be attached?
Match the employment level to the Assignment Level.
Note
Although a salary basis can be associated with a worker on either the assignment level or the terms level, most third-party payroll providers will expect salary information at only the assignment level.
Does this element recur each payroll period, or does it require explicit entry?
One of these three choices:
  • Standard Earnings: Recurring
  • Supplemental Earnings: Nonrecurring
  • Voluntary Deductions: Recurring




Example Purpose or Use
Primary Classification
Recurring base pay, such as annual salaries and hourly earnings
Standard Earnings
Recurring payments, such as an allowance
Standard Earnings
Nonrecurring payments, such as a bonus
Supplemental Earnings
Recurring voluntary deductions, such as savings plans or charitable contributions
Voluntary Deductions


Example Purpose or Use
Secondary Classification
Recurring base pay
Regular
Nonrecurring payment
Bonus
Recurring voluntary deduction
Select the relevant choice. If there is none, leave it blank.


Field
Sample Value
Name
Annual Salary
Hourly Wages
Allowance
Spot Bonus
Red Cross Contribution
Reporting Name
Enter the name that you want to display on reports for this earnings or deduction payroll element.
Effective Date
1/1/1951
Enter a very early date so that the payroll element is available for use immediately.
Input Currency
US Dollar
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 Process Date
At which employment level should this element be attached?
Assignment Level
Does this element recur each payroll period, or does it require explicit entry?
For nonrecurring payments such as a bonus, select Nonrecurring.
For all other purposes or uses in this worked example, select Recurring.
Process the element only once in each payroll period?
Yes
Process and pay element separately or with other earnings elements?
Process and pay with other earnings.

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