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
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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:
|
What
is the secondary classification?
|
This
item is optional. The available choices vary based on the selected primary
classification.
|
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:
|
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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