Setting Up IDW

Whenever you create an element through the Element Design Wizard, you are setting up your installation for IDW calculation and reporting. The Element Design Wizard includes required parameters that configures those elements for IDW.

arrow icon   Configure the Integrated Daily Wage element:

The Integrated Daily Wage predefined element calculates the IDW within the payroll run, and you must associate this element to each employee assignment by selecting the Standard Link option in the Elements window.

See: Defining Element Links

IDW is the integration of the employee daily earnings; therefore, its value depends on how you configured the earnings. Some earnings parameters and sub-classifications directly affect the IDW calculation:

Other sub-classifications may be used to configure earnings to apply the Social Security exemption rules correctly.

See: Survey of the Classifications

Use Fast Formula functionality to compute the IDW exemption rules.

arrow icon   Choose a fixed earnings IDW calculation method:

Fixed earnings IDW has two calculation methods: Earnings and Factor Table.

Perform the following steps to specify which method you are using at the GRE level.

Note: Changing the calculation method for an existing GRE requires some additional steps.

See: Changing Your IDW Calculation Method

  1. In the Organization window, query for the GRE you want to configure.

  2. Select GRE/Legal Entity, and click Others.

  3. Select Social Security Details, and click OK.

  4. Click in the field of the Additional Organization Information window to open the Social Security Details window.

  5. Choose your IDW calculation method.

  6. Save your work.

arrow icon   Configure each earning that contributes to the IDW:

  1. Edit the appropriate Earnings elements.

  2. Assign the appropriate sub-classifications.

  3. Set up the Element IDW attributes.

  4. Link the IDW element to those assignments with Social Security imputations.

arrow icon   Set up fixed earnings IDW, Factor Table method:

If you have configured one or more GREs to use the Factor Table method, you must perform the following setup steps:

  1. Determine which employees or employee types (based on compensation plans) require IDW calculation.

  2. Create one or more multiple user tables to reflect your different compensation plans (such as different collective agreements). Use the IDW Factor Table template as a guide.

    You can create as many tables as your business needs require.

    Note: Do not change the column names from their defaults.

  3. Populate these tables with values appropriate to your employee categories and seniority policies.

    Be sure your seniority ranges include all possible seniority values.

    A multiple user table may look like the following:

    Years of Seniority: From To Wage Days (A) Christmas Bonus Days (B) Vacation Days (C) Vacation Premium Days (D) Other Earnings (E) Total Days (F=A+B+D+E) Factor (G=F/A)
    0.00 1.00 360 15 6 1.50 0 376.50 1.045833333
    1.01 2.00 360 15 8 2.00 0 377.00 1.047222222
    2.01 3.00 360 15 10 2.50 0 377.50 1.048611111
    3.01 8.00 360 15 12 3.00 0 378.00 1.050000000
    8.01 13 360 15 14 3.50 0 378.50 1.051388889
    13.01 18 360 15 16 4.00 0 379.00 1.052777778
    18.01 23 360 1 18 4.50 0 379.50 1.054166667
    23.01 Onwards 360 15 20 5.00 0 380.00 1.055555556
  4. Add the table names to the Lookups under the MX_IDW_FACTOR_TABLES Lookup Type.

  5. Assign your IDW Factor Table name to the Integrated Daily Wage element, using one of the following methods:

    This triggers an IDW change event, and HRMS will archive the affected employee records the next time you run the Social Security Archiver.

    Note: Oracle HR-only customers must use this element if they want to use the Factor Table method of calculation.

  6. For each employee in the affected GRE, you must specify one or more hire dates. Oracle HRMS uses these dates to determine length of service for seniority calculation:

arrow icon   Using the Element window to define elements for IDW calculation:

The Element Design Wizard is the recommended method for creating Earnings and Deductions elements. However, you can still use the Element window to define your elements.

If you are creating elements through the Elements window, you must specify the following parameters through the Element Attribution and Rate Types Historic Rates EITs:

Historic Rates EIT Parameters
Historic Rate - Element Attribution
  • Time Dimension

  • Pay Source Value

  • Qualifier

  • % or Factor

  • % of Factor Value

Historic Rate - Rate Types
  • Type

  • Rate Type Name

See: Defining an Element and Historic Rates Extra Information Types