Example: Set Up Pay Component Proration for Leave of Absence
This example illustrates how to set up pay component proration for a leave of absence for the following:
- Payroll for the U.S.
- Payroll for the UK
- Payroll for Canada
- Payroll for Australia
Jake goes on medical leave from 2017-01-10 to 2017-01-27. You want to enable pay component proration for Jake's base pay so that he receives a single paycheck for the pay period.
Create an earning for a worker's basic salary named
Base Pay (Position)
, based on a compensation element.- Access theMaintain Payroll Proration Overridereport.You can drill into thePayroll Proration Event Categoryto edit the tenant settings.Security:Set Up: Payrolldomain in theCore Payrollfunctional area.
- Select theCountry / Territory.This page displays the proration settings in effect for the selected country or territory and proration event category.You can't enable pay component proration for leave of absence when there are in-progress pay results or in-progress retro pay results. To view in-progress results, run theAll Pay Results Blocking Tenant Proration Option Changesreport. You can't change the proration type after it's enabled and you've run and completed retro or completed payroll.Security:Set Up: Payrolldomain in the Core Payroll functional area.
- Access theEdit Earningtask for theBase Pay (Position)earning.Enter these values:OptionValueCalculation ProrationSelectProrate by Calendar Daysto prorate Jake's pay by the number of calendar days in the period.Events Causing Pay Component ProrationWorker-based LeaveIn theRelated Calculationsgrid, verify that the relevant related calculations, such as salaried compensation or hours, have aProrate by Calendar DaysProration Method.Security:Set Up: Payroll (Calculations - Payroll Specific)domain in theCore Payrollfunctional area.
- Select from Jake's related actions menu.Select aLeave TypeofMedical Leave > Illness or Injury.Enter aFirst Day of Leaveof 2017-01-10.Security: Configure theRequest Leave of Absencebusiness process and security policy in the Time Off and Leave functional area.
- Select from Jake's related actions menu.Enter aFirst Day Back at Workof 2017-01-28.Security: Configure theRequest Return from Leave of Absencebusiness process and security policy in the Time Off and Leave functional area.
- Access theRun Pay Calculationtask, and select Jake's pay group.
Jake's pay result displays 2 separate result lines for each subperiod. He’ll receive one combined paycheck for the pay period.
Pay Component | Subperiod |
|---|---|
Base Pay
| 2017-01-01 to 2017-01-09 |
Base Pay
| 2017-01-28 to 2017-01-31 |