Elements
Elements specify how and when an earnings or deductionshould be processed. When you create an element, several related elementsare typically created with the same name prefix. You can view therelated elements and other generated items on the Element Summarypage, including:
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Status processing rule - specifiesthe formula that processes the element entries
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Input values - values that canbe entered for, or returned from, the calculation
After creating an element:
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You must add eligibility rules
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You may want to add:
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Input values
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Status processing rules
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Frequency rules
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Balance feeds
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Use the Elements task to create elements and to viewthe generated elements and related items.
Payroll components
A payroll component is a group of rates and rulesthat the payroll run uses to calculate values for earnings and deductions.
When you create elements in certain classificationsand categories, such as involuntary deductions, the element templatecreates a payroll component with the same name.
You can manage payroll components using predefinedcomponent groups, such as federal tax, employment insurance, taxes,retirement plans, involuntary deductions, and benefits.
Payroll Calculation Information task to view payrollcomponents and their associated rules.
Wage basis rules
Wage basis rules determine the earnings that contributeto a deductible amount or, for exemptions, the elements that reducethe amount subject to deduction.
For example, wage basis rules might define whichsecondary classifications of standard and supplemental earnings aresubject to a particular tax.
Rules may vary based on reference criteria such asthe province of employment.
Use the Component Group Rules task to define therules and references.
Use the Calculation Cards task to enter referencevalues for workers.
Calculation value definitions
Calculation value definitions store calculation ratesand rules, which may vary based on other criteria.
The calculation value definition controls which calculationvalues are enterable on a calculation card.
Use the Calculate Value Definitions task to:
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View predefined definitions andthe definitions that element templates create.
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Update the annual maximum assessablewages are delivered for each province for processing Workers' Compensation.
Note:
You can edit definitions that element templates create,such as adding default calculation values.
Calculation components
Calculation components are individual calculationscaptured on a calculation card. When an element template creates apayroll component, it also creates calculation components that youcan enter on personal calculation cards to enter specific detailsfor the person.
Use the Calculation Cards task to enter calculationcomponents for a person.
Calculation factors
Calculation factors indicate which calculation valuedefinition to use when calculating the amount.
For example, a calculation factor might identifywhich set of tax rates to use based on the tax code of the employee.
If tax rates vary based on a factor such as a person'sfiling status, then filing status is defined as a calculation factorreference. Thus, an element may have multiple calculation factors,one for each unique set of rules and references values.
Use the Elements, Element Overview task to accesscalculation factors.
Use the Payroll Calculation Information task to createnew calculation factors. Normally, you don't need to create new factors,but if you do, you must also edit the element's payroll formula touse the new calculation factors.
Calculation types
A calculation type describes a way of calculatinga value. For example, calculating a value as a Flat Amount or by applyinga Rate to a value.
There's a predefined set of Calculation Types.
Use the Calculation Value Definitions task to viewcalculation types.
Calculation steps
A Calculation Step is a name or label that denotespart of a payroll calculation.
For example, a time calculation can consist of thefollowing parts:
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Calculate Hours worked
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Calculate hourly rate
A regional tax calculation can consist of the followingparts:
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Calculate Exemptions
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Calculate Allowances
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Calculate Tax
Each one of these is a calculation step in a fastformula.
Use the Payroll Calculation Information task.
Calculation methods
Predefined calculation methods are a way of performinga payroll calculation.
For example, a tax could be calculated using a cumulativeyear-to-date payroll balance or a periodic payroll value.
Use the Payroll Calculation Information task.
Calculation factors
Calculation factors create an association betweenan element, calculation step, and a calculation value definition.
Calculation factors indicate which calculation valuedefinition to use when calculating the amount.
Calculation factors can support complex calculationssuch as tax rates. For example, if a tax rate varies based on a factorsuch as a person's filing status the filing status can be definedas a calculation factor reference thus, an element may have multiplecalculation factors, one for each unique set of rules and referencesvalues.
Use the Elements, Element Overview task.
