You initiate the non-tax (pretax, benefit, voluntary) deductions you need by entering information about them in the Element Design Wizard.
In response to your entries in this wizard, Oracle Payroll generates two elements for the deduction, with the necessary input values and balance feeds, and a formula with the necessary formula result rules:
| Element | Description |
|---|---|
| <Element Name> | This base element is the main deduction element. You need to create an element entry for each employee that is eligible for the deduction. |
| <Element Name> Special Features | This element is an indirect only element. It is used behind-the-scenes in the payroll run to maintain some balances associated with the deduction. |
When you initiate the deduction, you determine the rules that control its processing, including the following:
Start and stop rules
You select the rules that determine when the deduction starts or stops for an employee. For example, a deduction might start when a balance of earnings for the employee reaches a specified amount. It might end when a balance of the amount taken for the deduction reaches a specified amount.
Amount rules
You select the method of entering or calculating the amount of the deduction. For example: The amount can be entered for each employee, it can be calculated by a formula as a percentage of earnings, or it can be selected by the formula from a Payroll table.
Frequency rules
These rules determine the pay periods in which the deduction is withheld. For example, a monthly deduction might be processed in the third period of the month for weekly-paid employees and in the second period of the month for employees paid on a semi-monthly basis.
Insufficient Funds rules
You can determine whether to hold an arrears balance for a deduction, and whether to take a partial deduction if earnings are insufficient to take the full deduction amount.
There are additional rules you can define for wage attachments.