To identify, classify, and categorize the earnings or payment:You define the earnings types and non-payroll payments you need for your compensation policies using the Earnings window.
Once you've entered your earnings types and non-payroll payments, Oracle Payroll generates an element for the earnings or payment, with the necessary input values and balance feeds, and a formula with the necessary formula result rules.
To identify, classify, and categorize the earnings or payment:Set the effective date early enough to handle any historical entries. You cannot enter an earnings or payment for employees before its effective start date.
Enter a unique name for the earnings or payment, for example, Quarterly Bonus Payment. The application uses this name for both the generated element and formula. The name must start with a letter of the alphabet, not a number or symbol, and must not exceed a length of 31 characters.
Optionally enter a reporting name, for example, Qtrly Bonus, which is a short name that appears on reports and the statement of earnings. If you leave this field blank, Oracle Payroll uses the element's long name.
Select the correct classification and category. The classification and category of an earnings or payment help to determine the tax rules and other rules and procedures that apply to it.
If you selected the classification Alien/Expat Earnings, select an Alien Supplemental Category. Otherwise, you can skip this step.
The application uses the tax rate of the category you selected in the previous step for the earnings that come under the treaty benefit. Any earnings that are not recognized under the treaty benefit will be taxed according to the supplemental category you select in the Alien Supplemental Category field.
The classification of the earning or payment determines the default processing priority of the element in the payroll run. The payroll run processes elements with lower priority numbers first. You can optionally change the default priority to change the order Oracle Payroll uses to process the element.
To create an earnings element for Fair Labor Standards Act (FLSA):
Select the FLSA Overtime Earnings check box to include the earnings in the calculation of the FLSA overtime base rate.
Select the FLSA Overtime Hours check box to include the hours in the calculation of the FLSA overtime base rate.
See: Overtime
If you are creating a regular non-worked hours earnings type, select Reduce Regular. See: Creating Regular Non-worked Hours.
If you are creating a net-to-gross earnings type, select Grossup. See: Creating a Net-to-Gross Earnings Type
Select Standard Link only if Oracle Payroll should automatically enter the earnings or payment, with its default input value entries, for all eligible employees.
Select Student Earnings to create the Student Earnings element. When you select the category Student Earnings, HRMS automatically selects the Student Earnings and Total Reached Stop Rule check boxes.
Select Total Reached Stop Rule to create the Maximum Amount input value to the earnings element. HRMS ends the earnings element when the specified maximum amount is reached.
Select Special Input Element to generate the Special Inputs element, which accepts additional or replacement amounts for a particular payroll run. This element is nonrecurring. You must link it to the employee assignment for a particular payroll run. By default, this check box is not selected.