Chptr9 Elements Revised Apr 07

7/28/2019 Chptr9 Elements Revised Apr 07

1/27

C HAPTER 9: E LEMENTS

O RACLE HRMS Revised 4/9/2007


2/27


3/27

Chapter 9 ELEMENTS Page 1

TABLE OF CONTENTS

Section Objectives 2

Introduction 2

What is an Element 2Element Components 3

Element Input Values 5

Element Input Values for Wage Attachments 6

Accrual Elements 8

Earning Elements 8

Deduction Elements 21

Special Inputs Elements 25


4/27


SECTION OBJECTIVES

Learn what an element is. Learn what an input value is and its relationship to an element. Learn what each element set up in Oracle is for and whether is can be used

in Time Entry.

INTRODUCTION Elements can be paid in Oracle, Time Entry or Kronos. All elements can be paid directly in Oracle, however, not all elements can be paid in Time Entry and Kronos.There are two forms from which an element can be generated in Oracle:

Entries form Batch Element Entries form

Some elements are automatically set up upon employment, such as

US_TAX_VERTEX and Regular Wages or Regular Salary. These elements are notactually paid from the Entries form; hours must be entered using the Time EntryWages element through Kronos or Time Entry.

Contact corporate payroll if you need a new earningsor deduction elements.

We need to discuss what an element is, the basic components of an element and thelist of input values for elements. The definitions and input values will be the samewhether the elements are entered directly to the Entries form or in Batch ElementEntries which will be discussed in Time Keeping Methods chapter.

WHAT IS AN ELEMENT ?

Elements are the building blocks of pay and benefits, both for HR analysis and payroll processing.

Elements can represent:

Earnings, such as salary, wages, and bonuses

Benefits, such as employee medical plans and pension plans

Absences from work

Non-payroll payments, such as expense reimbursements

Tangible items distributed to employees, such as tools, uniforms, mobile phones, or computers


5/27


Voluntary and involuntary deductions, as well as pre-tax and tax deductions

Employer taxes and other employer liabilities

ELEMENT COMPONENTS

All elements are set up by corporate payroll; however, center payroll should beaware of how they work relative to an employees Batch Element Entry and Entriesforms. Certain elements are set up to be paid according to the employees hourlyrate of pay such as the benefit elements, while others are set up to be paid as a flatdollar amount, such as bonus payments. Still others can be set up with a rate of payspecific to that particular earning. For instance, shift differentials are defined for each center with a rate of pay for each differential. Any employee who is paid oneof the differentials will be paid at that differentials defined rate. If a center decidesto pay a particular group of employees at a higher shift differential rate, center

payroll will have to override the shift rate of pay on the Batch Element Entry formfor the particular employees.

Elements are comprised of these components:

Classification: Earnings, Imputed Earnings, Non-Payroll Payment,Supplemental earnings, Involuntary Deductions

Balances: Gross Earnings, Taxable Earnings, Disposable Earnings Category: Overtime, Premium, Regular, Regular Non-Worked, Shift Calculation Rule: Flat Amount, Hours X Rate, Hours X Rate X Multiple Processing Type: Recurring or Non-Recurring Termination Rule: Actual Termination, Final Close, Last Standard

Process Input Values: Hours, Amount, Rate, Separate Check, Percentage

The classification controls the order in which elements are processed and the balances they feed. If an element is set up with a classification of Earnings thesystem would know that the amount should be added to an employees gross and taxable wages. Where as, if an element is set up as Non-Payroll Payment for theclassification, the amount would not be added to the gross or taxable wages.

Balances can be positive or negative accumulations of values over periods of timenormally generated by payroll runs. A balance can sum pay values, time periods or numbers. Take for example and employee that has a child support order. Thesystems needs to track disposable earnings for a particular pay period so it candetermine if the employee has enough disposable earnings to withhold the full child support amount.

Category of an element will help to determine the federal and state tax rules, other rules such as FLSA laws and procedures that apply to it. If an element is set upwith a category of Regular Non-Worked, the system will know that any hoursentered for this element do not have to count towards overtime.


6/27


The Calculation Rule is a formula that tells the system how to compute the InputValues . For example:

Hours X Rate

The Processing Type will determine for how long the element should be paid.Entries for recurring elements remain effective indefinitely, until they are updated or the employee ceases to be eligible for the element . Entries for nonrecurringelements are one-time entries. They are effective only for the current pay period.

The Termination Rule controls the processing of elements after the employeestermination date. Entries can end on the employees actual termination date or remain open until a final processing date. There are three termination rules:

If the termination rule for an element is Actual Termination , and the element's processing type is recurring, entries to the elementclose down on the employee's termination date. If the element's

processing type is nonrecurring, entries close down either on the lastdate of the pay period in which the employee leaves or on the datethe assignment ends (the final process date) if this is earlier.\

If the termination rule is Final Close , entries to the element stayopen beyond the actual termination date. This makes it possible to

pay bonuses, severance pay, and so on, and to make year end adjustments after the employee's actual termination date.

If the termination rule is Last Standard Process , entries to theelement are not processed after the Last Standard Process date. TheLast Standard Process date defaults to the last day of the pay period in which the employee is terminated, but you can set it to a later

period when you terminate an employee. This is the appropriate rulefor many recurring earnings types.

Input Values hold information about elements. Input values are processed by theCalculation Rule to calculate the elements run result. Meaning, input values arethe Hours, Amount, and Rates that are entered for the system to calculate a

paycheck.

With the exceptions of Input Values, the componentscan not be overridden at the center or employee level.


7/27


ELEMENT INPUT VALUES Now, lets discuss the possible values that could be entered for any element on theEntry Value form.

Pay Value Short-circuits formulas and provides run results. Only enter a Pay

Value if you wish to override the original value.

Hours this field is to enter hours for elements such as Time Entry Wages,Overtime, Time Off Benefit and Straight-Time.

Amount this field is to enter a flat dollar amount for such elements as Bonuses,On Call Flat Amount, and Education Assistance.

Rate this field gives the formula the rate to use. Entries here override Rate Codeentries. It is not a required field but when a rate is entered on the Entry Value form,Oracle uses this rate to calculate the paycheck.

Rate Code this field gives the formula the codes by which to locate rates in theWage Rates table.

Shift Code is to designate if an employee works 2 nd or 3 rd shifts and if and employee is working a nurses shift.

Multiple is used when an employees rate must be manipulated. Must be usedwhen using the Double Time Element.

Jurisdiction Provides the location for work done somewhere other than the

primary work location. Entry of a location here prompts system to find thelocation's tax code in the table of jurisdiction codes, and use it to override the codeof the employee's regular work location when calculating taxes. See complete listof Jurisdiction at the end of this chapter.

Tax Separately - This input value has a default entry of No. Yes indicates that youwould like Oracle Payroll to process this earning separately from the others (such asfor taxation purposes).

Deduction Processing - For only tax deductions to process, choose Tax Only. For only tax and pretax deductions to process, choose PreTax and Tax Only.

Separate Check - Yes signals that this earnings should be paid by separate payment.The default is NO.

Date Earned must be entered for all non-recurring elements . The entry willnot be processed until this date.

Original Date Earned -


8/27


Processing Priority An element's primary classification provides a default processing priority for the element in payroll runs. Lower priority numbers processfirst. It is sometimes necessary to establish the order in which the element

processes with respect to other elements in the classification. For example, youmay need to determine the precise order in which voluntary deductions are taken if

an individual does not have wages to cover all the deductions.

ELEMENT INPUT VALUES FOR WAGE ATTACHMENTS Although garnishment set up will be discussed in detail in Chapter 11 Garnishments, we will discuss the input values below.

Allowances Holds withholding allowance information from federal form 668-W, part 3. Must be entered for federal tax levies; will not default to W-4 information.Amount Gives amount to deduct each pay period if the deduction amount rule is aFlat Amount.

Arrears Bal Amount Holds arrearage information supplied on the court order.

Arrears Dedn Amount Gives formula court-specified amount to be withheld each period to cover any existing arrearage.

Attachment Number Records court-issued identification number, the casenumber, sometimes the social security number of the employee.

Date Earned - Will sometimes appear on a garnishment element. When this occursit is Not Applicable for wage attachments and will be grey in color.

Date in Arrears If arrearage exists, gives formula the date from which it started.This information is supplied by the court order.

Date Served Holds the attachments date of issue. This can help to set priorities if multiple wage attachments exist.

Dedns at Time of Writ Gives formula the total dollar amount of employees non-tax deductions as of the date served, which can affect calculation of employeesexempt earnings for tax levies. The deduction amounts may vary periodically.Examples include medical premiums and union dues. Refer to Chapter 11 Garnishments for other valid exempt amounts.

Filing Status Hold filing information from federal form 668-W, part 3. Thisinformation should not match federal W-4. Must be entered for federal tax levies;will not default to W-4 information.

Jurisdiction Although Jurisdiction is used for compensation elements to overridethe taxing state or locality, it performs a different function when used as a wageattachment input value. When used in conjunction with wage attachments, theJurisdiction field overrides employees work state as source of the legislation used to administer the attachment. This is on a state-by-state basis as not all states honor


9/27


court orders issued by other jurisdictions or will honor the order but follow thelegislative requirements of the employees work state.

Max Per Period For use when multiple payroll runs occur during the same pay period for the deduction elements. All payroll runs for the period will check to

make sure deductions amounts for the element will not exceed this value.Monthly Cap For use when multiple payroll runs occur during the same calendar month for the deduction elements. All payrolls runs for the calendar month willcheck to make sure deductions amounts for the element will not exceed this value.

Number of Dependents Gives formula the number of dependents that can affectcalculation of the employees exempt earnings. Generally, this field is notapplicable except for employees residing in Delaware. If the employee has multiplechildren on different order, this field should hold the sum total of all the dependentchildren.

Payee Details Holds the information about the recipient of the wage attachment,such as the estranged spouse or a creditor. This is established as a personal payment method, and there can be multiple values for the an employee record, suchas for a support order payment AND a creditor debt, or multiple support orders.

Percentage Gives percentage to use if the deduction amount rule is % Earnings. If the field is left blank, the system will calculate the amount based on maximumwithholding laws.

Processing Priority The first filed gives the system assigned processing priority.The second field lets you determine the processing sequence or priority of multiple

wage attachments.

Total Owed Gives formula the total amount owed, if applicable for the deductioncategory.

Support Other Family This field holds a value of Yes or No, and affects theemployee exempt wages for support orders. As discussed in the garnishmentchapter there are specific limits for the amount of child support that can be deducted from an employees pay depending upon if an is in arrears and if they aresupporting another family. Selecting Yes will limit the deduction amounts to50% or 55%. Selecting No will limit the deduction amounts to 60% or 65%.

Not all input values are required for allelements

Entry to some fields may not be permitted Some fields may be required Some fields have a list of values; others may

be validated as you leave the field Some fields may contain default values Elements are processed by the Period End Date


10/27


ACCRUAL ELEMENTS Before we can discuss paying an employee, we need to understand the affectdifferent earnings can have on an employees accrued time off and pension hours.Certain elements will accumulate time off and pension hours while others will not.Keep in mind as well, that only full time employees accrue time off while all

employees are eligible to accrue pension hours.

Time-Off Benefit Accrual

All full time employees are eligible to earn time off benefits. The time off accrued for all benefits is accumulated in the form of hours by the element. The followingis a list of the elements that accrue time off:

Time Entry Wages Salary Continuance Jury DutyHealth Medical Leave Bereavement Pay Time Off BenefitWorkers Compensation Suspend With Pay Prior Pay AdjustmentTime Off to Vote BEH Inter Specs (CA Only) Personal Attendant (CA Only)Sleep and Awake (CA Only) Sleep Overnight (CA Only) Awake Overnight (CA Only)Senior Companion (CA Only)

Pension Hours Accrual

All employees are eligible to accrue time toward their pension. Hours for eligibilityaccumulate in the element. The following is a list of elements that accrue pensionhours:

Time Entry Wages Prior Pay Adjustment Time Off BenefitSeverance Pay Health Medical Leave Retro Pay AdjustmentBereavement Pay Jury Duty TOB Termination

Time Off to Vote Salary Continuance Workers CompensationSuspend With Pay Additional Earnings FFS (FL Only)

Devereux Pension Payment

After two years of service, Devereux begins contributing a percentage of anemployees eligible earned income to their pension plan. The following is a list of the eligible elements that Devereux will make a contribution on:

Time Entry Wages Health Medical Leave Prior Pay AdjustmentRetro Pay Adjustment Bereavement Pay Wage AdjustmentTime Off Benefit TOB Termination Severance PensionJury Duty Pay Time Off To Vote Salary ContinuanceWorkers Compensation Suspend With PayAdditional Earnings FFS (FL)

EARNING ELEMENTS Now that we have discussed the basic components and input values of elements, wecan discuss elements that are set up foundation wide. This is not a complete list for staff payroll, nor does it include the client elements. The client elements can befound in the appendix.


11/27


As we go through the each element the classification, category, processing type,and calculation rule will be noted on the left hand side. This will be importantwhen we are discussing the set up of elements on the Entries form.

TIME ENTRY WAGES - Generally, employees will receive Time Entry Wagesfor all hours worked that do not exceed 40 in a workweek. All regular hours paid toan employee accumulate time off and pension. This element can be entered intoTime Entry as code 001.

Class: EarningsCategory: Regular Type: Non-RecurringRule: Hrs X Rate

OVERTIME - Generally, an employee should be paid time and a half when he or she works hours in excess of 40 in a workweek. California employees should refer to the Appendix on Wage & Hour for their specific overtime law as it differs fromall other states. Overtime should only be paid to an employee if they have in factworked the full 40 hours in the workweek. Benefit hours do not count towardscomputing weekly overtime. This element can be entered into Time Entry as

code 003.

Class: EarningsCategory: OvertimeType: Non-RecurringRule: Hrs X Rate X 1.5

Overtime is not calculated on days notworked.

DOUBLETIME 128 - Currently, California is the only state that Devereuxoperates in that requires employees be paid double time. When employees work inexcess of 12 hours in a day or after 8 hours on the seventh consecutive day of work,they must be paid double time, which is paid at two times the employees regular rate of pay. Other centers can pay double time at their discretion, but are notrequired to do so by law. When using the Doubletime element you must enter a 2in the Multiple input value. This element can be entered into Time Entry ascode 128.

Class: EarningsCategory: PremiumType: Non-RecurringRule: Hrs X Rate X 1

HEALTH MANAGEMENT LEAVE 050 - Employees are eligible to beginaccruing sick time (known as HML) at their date of hire. The accrual factor for sick time is .05 an hour. Therefore, for every 80 hours worked, an employee would accrue 4 hours of HML time. This accrual factor does not change throughout anindividuals employment with Devereux. Per benefit year, an employee can accrueup to a maximum of 64 hours of HML.

Class: EarningsCategory: Non-Worked Type: Non-RecurringRule: Hrs X Rate

Employees are paid HML when their supervisor has approved it (i.e. from anauthorized time card or correction sheet). Furthermore, employees should only be

paid HML when they have an available balance. If all of accrued sick time has been used, payroll should not pay HML even if this is what was submitted on thetime card. In this instance, the supervisor should be contacted and informed the


12/27


employee does not have any available HML time and Time Off Benefit should bechosen for payment. This element can be entered into Time Entry as code 050.

Employees may NOT have negative HML balances.

With the exception of California employees, when an individual terminatesemployment with Devereux any unused HML balances are lost and should not be

paid on the employees final paycheck.

BEREAVEMENT 055 - Full time employees are eligible to receive bereavement pay for up to four paid regularly scheduled workdays for the death of an immediatefamily member. Immediate family members include a spouse, parents, siblings,children, grandparents, grandchildren, parent-in-law and other relatives who residein the employees household. Full-time employees may take time off to attend thefuneral of someone other than a person designated to be an immediate familymember. This time can be paid as Time Off Benefit, or may be taken unpaid if notime off is available. This element can be entered into Time Entry as code 055.

Class: Earnings

Category: Non-Worked Type: Non-RecurringRule: Hrs X Rate

SLEEP TIME 123 Employees who are required to remain on Devereuxs property for 24 hours or more should be compensated sleep time pay. Theemployer and the employee can agree to exclude a sleeping period of not more thaneight hours from hours worked, provided the employer furnishes adequate sleepingfacilities and the employee can enjoy an uninterrupted nights sleep. (If noagreement exists, the eight hours of sleeping time constitute hours worked.) If thesleeping period is interrupted by a call to duty, the interruption must be counted ashours worked. If the period is interrupted to such an extent that the employeecannot get a reasonable nights sleep (at least five hours of sleep), the entire period must be counted as hours worked. This element can be entered into Time Entryas code 123.

Class: EarningsCategory: PremiumType: Non-Recurring

Rule: Hrs X Rate

RETRO PAY ADJUSTMENT 130 - Employees who receive a merit increasewith their annual evaluation at a date later than their anniversary date would receivea retro payment. The retro is equivalent to the difference between the previous rateof pay and the new increased rate of pay. This difference is then multiplied timesall regular hours and overtime hours worked. The new rate of pay is set up for thenext pay period; therefore the retro payment will cover the dates between the annualdate of the evaluation and the last day of the previous payroll. Retro payment dateranges should always start with the beginning of a pay period and end with the lastday of the pay period. This element can not be entered into Time Entry.

Class: EarningsCategory: Non-Worked Type: Non-RecurringRule: Flat Amount


13/27


WEEKEND SHIFT 047 - Any hours worked on the weekend are considered shiftdifferential hours. If an employee works during these hours, many centers will paya shift premium for the hours worked. This shift premium is typically under adollar per hour, however, this amount can differ from center to center. Some

locations also have varying shift premium rates for different departments. Thiselement can be entered into Time Entry as code 047.


STRAIGHT TIME PAY 012 - Additional straight time is paid to employees whenthey have taken a benefit day but have also worked hours in excess of 40 in theworkweek. It is used in place of overtime and is paid at the employees regular rateof pay. No employee should ever accrue over 40 hours in a week or 80 in a

payroll, therefore it is very important that we understand when additional straighttime should be paid. This element can be entered into Time Entry as code 012.

Class: EarningsCategory: PremiumType: Non-RecurringRule: Hrs X Rate

First example of when to pay additional straight time:

In a week an employee works 40 regular hours, 8 of which are at second shift. Theemployee used 8 hours of Time Off Benefit in the same week. His paycheck would reflect the following:

32 hours Time Entry Wages8 hours Straight Time8 hours Shift Differential8 hours Time Off Benefit

This employee would accumulate 40 hours towards his or her time off benefits and pension.

In this example, if we did not use additional straight time and paid the 8 hours atregular pay, the employee would have accrued 48 hours and this would not have

been correct.

Second example of when to pay additional straight time:

In a week an employee works 50 regular hours and uses 8 hours of personal time. His paycheck would reflect the following:

32 hours Regular Pay HED 0012 hours Overtime Pay HED 0038 hours Additional Straight HED 012

8 hours Personal Pay HED 070

This employee would accumulate 40 hours towards his or her time off benefits and pension.

Additional straight time should also be paid to salaried exempt employees whowork a second job at Devereux.


14/27


SHIFT DIFFERENTIAL 022 - Hours worked in the evening from 3 PM to 7 AMare considered shift differential hours. If an employee works during these hours,many centers will pay a shift premium for the hours worked. All hours worked onsecond and third shift are paid at regular pay with an additional premium payment.This shift premium is typically under a dollar per hour, however, this amount can

differ from center to center. Some locations also have varying shift premium ratesfor different departments. This element can be entered into Time Entry as code022 and it must be used with a shift code input value of 2 or 3.

Class: EarningsCategory: ShiftType: Non-RecurringRule: Hrs X Rate X Fctr

SHIFT DIFFERENTIAL OT 024 - If the employee is working second or third shift and has exceeded 40 hours in the workweek, some centers pay an additionalovertime shift premium. These hours would be paid as overtime as well as anadditional payment for the shift overtime. The overtime shift premium is paid atone and a half times the second shift premium rate. This element can be enteredinto Time Entry as code 024 and it must be used with a shift code input valueof 2 or 3.


NURSES SHIFT DIFFERENTIAL 032 - Hours worked by Nurses in the eveningfrom 3 PM to 7 AM are considered shift differential hours. If an employee worksduring these hours, many centers will pay a shift premium for the hours worked.All hours worked on second and third shift are aid at regular pay with an additional

premium. This element can be entered into Time Entry as code 032 and it mustbe used with a shift code input value of B or C.


NURSES SHIFT DIFFERENTIAL OT 033 - If a nurse is working second or third shift and has exceeded 40 hours in the workweek, some centers pay an

additional overtime shift premium for nurses. These hours would be paid as over time as well as an additional payment for the shift overtime. The overtime shift premium is paid at one and a half times and second shift premium rate. Thiselement can be entered into Time Entry as code 033 and it must be used with ashift code input value of B or C.

Class: Earnings

Category: ShiftType: Non-RecurringRule: Hrs X Rate X Fctr

NURSES SHIFT HOLIDAY OT 040 If a nurse is working a holiday and hasexceed 40 hours in week the workweek, the Cleo Wallace center pays an additionalholiday shift premium for nurses. This element can be entered into Time Entryas code 040 and it must be used with a shift code input value of D.

TIME OFF BENEFIT 060 - After employees have completed their 90 day probationary period, they are eligible to begin accruing TOB time. The accrualfactor for TOB depends on the employees length of service and their hire date.The following chart outlines an employees accrual factor, total hours they canaccrue in a benefit year and total hours accrued per 80 hours worked. This elementcan be entered into Time Entry as code 060.


Hired Prior to 1/1/05 Hired on or After 1/1/05Service Earn up to Accr Rates Service Earn up to Accr Rates90 days9 yrs 208 hrs .1000 X # hrs wked 90 days 2 yrs 192 hrs .0923 X # hrs wked


15/27


10 yrs14 yrs 248 hrs .1192 X # hrs wked 3 yrs 4 yrs 200 hrs .0962 X # hrs wked 15+ yrs 288 hrs .1385 X # hrs wked 5 yrs 9yrs 208 hrs .1000 X # hrs wked

10 yrs 14 yrs 248 hrs .1192 X # hrs wked 15+ yrs 288 hrs .1385 X # hrs wked

Employees are paid TOB when their supervisor has approved it (i.e. from anauthorized time card or correction sheet). Unlike HML, employees can be paid TOB even if they have not accrued the hours at present. However, employees cannot have more than 40 hours negative. If employees already have 40 negative hoursof TOB, payroll should not pay the TOB even if this is what was submitted on thetime card. In this instance, the supervisor should be contacted and informed theemployee does not have any available Time Off Benefit hours. Exceptions should only be made upon supervisory approval.

TOB TERMINATION 061 - When an individual terminates their employmentwith Devereux, he or she should be paid any accrued unused Time Off Benefithours in the final paycheck. This payment should be made using the TOBTermination rather than the Time Off Benefit earning. When TOB Termination is

paid, the hours will reduce the existing Time Off Benefit balance. This elementcan be entered into Time Entry as code 061.

Class: EarningsCategory: SupplementalType: Non-Recurring

Rule: Hrs X Rate

TOB SELL 062 - In some instances, it is not possible for employees to use their vacation time. This can occur when a center or department is short staffed or during a very busy time of year. If this is the case, a supervisor may choose tocompensate these employees for the vacation time they were not able to take.

Class: EarningsCategory: SupplementalType: Non-RecurringRule: Hrs X Rate

Employees are paid TOB Sell pay only when their supervisor has approved it (i.e.from an authorized time card or correction sheet). Furthermore, employees should only be paid TOB Sell when they have an available Time Off Benefit balance. If all accrued Time Off Benefit time has been used, payroll should not pay the TOBSell even if this is what was submitted on the time card. In this instance, thesupervisor should be contacted and informed the employee does not have anyavailable Time Off Benefit. It should also be noted, that the TOB Sell earning isnot intended to pay employees any remaining Time Off Benefit balances that theywere unable to use at the end of the benefit year. Employees are responsible for managing their time off and using it appropriately during the year. TOB Sell isonly used on a case-by-case basis, for special situations when an employee can nottake time off due to constraints within the department or center. This element canbe entered into Time Entry as code 062.

SALARY CONTINUANCE 148 - Individuals who end their employment withDevereux typically give two weeks notice. A supervisor can decide he or shewould rather not have the individual work the two weeks. In this instance, theformer employee would be paid salary continuance for the amount of time he or shegave notice. Center payroll and HR can process this type of separation paymentwithout corporate involvement. This element can be entered into Time Entry ascode 148.



16/27


PRIOR PAY ADJUSTMENT 125 - An employee who has been paid at the wrongrate of pay should be paid a prior pay adjustment in the next payroll. A prior payadjustment is the difference between the wrong rate that was paid and the correctrate that should have been paid. Hours are not adjusted when paying a prior payadjustment because the number of hours paid would have been correct. This

element can not be entered into Time Entry.

Class: EarningsCategory: Non-Worked Type: Non-RecurringRule: Flat Amount

First example of when to pay a prior pay adjustment:

An employees normal rate of pay is $12.50/hour. The employee works 80 hours but ismistakenly underpaid at $12.00/hour. The prior pay adjustment would be paid as follows:

Was Paid: $960Correct Payment: $1000Owed: $40

This employee would be paid a $40 prior pay adjustment.

Second example of when to pay a prior pay adjustment:

An employees normal rate of pay is $14.75/hour. The employee works 80 hours but ismistakenly overpaid at $15.50/hour. The prior pay adjustment would be paid as follows:

Was Paid: $1240Correct Payment: $1180Owes us: $60

A negative $60 would be processed as a prior pay adjustment to collect the overpayment.

Prior pay adjustments should not be paid if hours can be associated to the payment.In other words, prior pay adjustments would not be paid when an employee doesnot receive a paycheck or when partial hours were not paid. For instance, if JaneDoe did not get paid this payroll and she worked 80 hours regular and 10 hoursovertime, she should be paid 80 hours regular and 10 Overtime, not 90 hours of

prior pay adjustment. Similarly, if John Smith only got paid 72 hours regular and he should have gotten 8 more hours, we should pay him 8 regular hours, not 8 prior

pay adjustment hours. Prior pay adjustments do not represent hours missed, butrather rates that were paid incorrectly.

Prior Pay Adjustments are paid for incorrect pay rates not hours.


17/27


BONUS GROSS 135 - Employees can receive a bonus for a variety of reasons.Generally, it is authorized supplemental income paid to an employee for a job welldone. All earnings paid as a bonus are taxed at the federal supplemental tax rate,which is currently 25%. California, Colorado, Georgia, New York, Rhode Island,and Virginia have supplemental wage tax rates as well in place for bonuses. Those

rates will be discusses in the Tax section. Typically, bonuses are issued as a second check to avoid having employees normal earnings increased to a higher tax bracket

because of the additional income. This element can not be entered into TimeEntry.

Class: SupplementalCategory: BonusType: Non-RecurringRule: Flat Amount

If HR approves a $1000 gross bonus for an employee, he or she would beresponsible for paying their share of federal and state taxes and would net less than$1000.

There is another type of bonus known as an over-max bonus. This type of bonusis paid to an employee in lieu of that individual receiving an annual merit increase.

When employees reach the maximum salary in their salary grade, they can notreceive a merit increase without getting a promotion to a higher salary grade.Therefore, if there is no room for growth to a new grade, employees will be paid thedifference between their current rate and an increased rate for one years salary in alump sum bonus payment.

Typically, employees have a problem understanding the additional taxes beingwithheld from their supplemental earnings. Therefore, if you should need additional reinforcement you may refer them to pages 12 and 13 of this InternalRevenue website: http://www.irs.gov/pub/irs-pdf/p15.pdf

BONUS NET 136 - Same rules apply for Bonus Net as Bonus Gross.However, if a net bonus of $1000 is approved, the employee would receive a gross payment higher than $1000 to cover the cost of their federal and state taxes and they would net $1000. This element can not be entered into Time Entry.


SEVERANCE (PENSION) 140 - Occasionally, when an employee is asked toterminate his or her employment with Devereux the individual will be offered aseverance package. A severance package is a comprehensive agreement betweenthe employee and Devereux to continue paying the individual for a designated length of time beyond his or her termination date. Potentially, continued healthinsurance coverage could also be part of the agreement. If the employee was

eligible for Devereux pension contribution prior to his or her termination, he or shewould receive payment using HED 140 which will allow them to continue toaccruing pension hours as well as receive Devereux pension contributions. Thiselement can not be entered into Time Entry.

Class: SupplementalCategory: Dismissal PayType: Non-RecurringRule: Hrs X Rate

Class: SupplementalCategory: Dismissal PayType: Non-RecurringRule: Hrs X Rate

SEVERANCE PAY (NON-PENSION) 139 - This HED is identical to the previousseverance earning with one difference. If the employee was not eligible to receiveDevereux pension contributions, he or she would receive severance payments usingHED 141 which does not accrue pension hours. This element can not be enteredinto Time Entry.
http://www.irs.gov/pub/irs-pdf/p15.pdfhttp://www.irs.gov/pub/irs-pdf/p15.pdf


18/27


Only corporate HR and corporate payroll handleseverance agreements. The center payroll should

NEVER pay an employee a severance payment.

WORKERS COMPENSATION 155 - Employees who are approved for workerscompensation payments are paid Workers Compensation during the 7 day waiting

period an employee goes through with each workers comp claim. After 7 days,employees are paid directly from the workers comp carrier. Also, employees whoreturn to work on modified duty get paid their actual hours worked plus workerscompensation for those hours they are not able to work according to conditions of the workers comp case. This element can be entered into Time Entry as code155.


SPECIAL COMP NR 144 - Special compensation can be used for recruitment purposes to attract an individual to consider employment with Devereux. Fromtime to time, Devereux will pay a new hire a special compensation payment tocover their cost of cobra during the 90-day of probationary period when theindividual is ineligible for health insurance benefits. We could also pay anindividual special compensation for his or her loss in pension contributions.Typically this is done when an employee was receiving a company match at the

previous place of employment and would be without this contribution for the firsttwo years at Devereux. Again, both of these instances are tactics used by HR toentice an individual to consider employment with Devereux, thus this type of

payment must be authorized.


Another reason employees would receive a special compensation payment would befor an individual who has taken on additional job responsibilities, but is not gettinga merit or promotional increase. This can occur when an employee steps in for someone who is out on a long term leave, such as disability, maternity or militaryleave. It can also happen if an individual is being considered for a promotion, butmanagement wants to evaluate his or her performance in such a role without

promoting the individual immediately. Instead of promotion, additional duties areassigned and the employee is compensated for those extra responsibilities. Thiselement can not be entered into Time Entry.

Be aware that Special Compensation is considered supplemental wages and therefore taxed at higher rates. Refer to Bonus Gross above

SPECIAL COMP R 145 used for the same as above except this element is set upto recur over several pay periods. This element can not be entered into TimeEntry.

JURY DUTY PAY 146 - All full time employees summoned for jury duty aregranted a paid leave in order to serve. Employees must provide a copy of thesummons to their supervisor who should in turn submit a copy with the employees



19/27


time card. Generally, the court compensates employees summoned for jury duty.This payment should be signed over to Devereux and the employee should be paid 8 hours of jury duty pay for the day. This element can not be entered into TimeEntry.

TIME OFF TO VOTE 147 - Arizona, California, Colorado, New York, and Texasrequire employers to grant employees time off to vote. Usually, these laws addresssituations where the employee would otherwise not have sufficient time to voteoutside of working hours. The employee must then be given time off to vote and

paid for the time spent voting. Although, the time spent does not have to beincluded in overtime calculations. Therefore, the hours would be entered as TimeOff to Vote. This element can be entered into Time Entry as code 147.


Refer to the Appendix on Wage & Hour for more details.

SUSPEND WITH PAY 167 - Depending on the situation, infraction violation of

Devereuxs policies or violation of Devereuxs Standards of conduct, appropriateaction including suspension maybe warranted. Upon further investigation if it isdetermined the employee was not at fault any missed hours would be paid usingSuspend With Pay. This element can be entered into Time Entry as code 167.


Exempt employees may only be suspended without pay in increments of a full day when the employeeviolates Devereuxs Standards of Conduct or violatessafety rules.

ON CALL HOURS 126 - Non-Exempt employees in California, Massachusetts,and New Jersey who are called in must be paid for a certain number of hours.Please refer to the Appendix on Wage & Hour. In addition, non-exempt employeesthat are required to remain on-call on Devereuxs premises or so close that he or shecannot use the time effectively for his or her own purposes should be compensated on-call pay. On Call Hours can also be paid to exempt employees, although notrequired by law. This element can be entered into Time Entry as code 126.


ON CALL FLAT AMOUNT 119 - On-Call Flat Amount compensation can only be used to pay a flat amount. Each center can have their own flat amount accordingto their own policies. Typically, this element is used to pay exempt employees.

Non-exempt employees should always be paid using On Call Hours. On Call FlatAmount would be in addition to On Call Hours. This element can not be enteredinto Time Entry.

Class: EarningsCategory: Regular Type: Non-RecurringRule: Flat Amount

ON CALL DIFFERENTIAL 124 - On Call Differential is used to pay a premiumfor hours on call. Same rules apply as On Call Flat amount for non-exemptemployees. They must be paid for any hours they are engaged to be waiting and On

Class: EarningsCategory: ShiftType: Non-RecurringRule: Hrs X Rate X RateCode


20/27


Call Differential would be in addition. This element can be entered into TimeEntry as code 124.

Please refer to the Appendix on Wage & Hour for more details on the rules for OnCall or Call In pay.

Class: Non-payrollPaymentCategory: EducationAssistanceType: Non-RecurringRule: Flat Amount

EDUCATION ASSISTANCE NT 152 - Staff Tuition Assistance Plans (STAP)are available at many centers based on the centers ability to fund the plan. It isintended to encourage employees to further their education and training. Full timeemployees are eligible for tuition assistance after completing their 90-day

probationary period. Different taxation rules apply depending on whether thecourses are job-related. There is no limit on the amount that can be reimbursed tothe employee for job-related courses. Job-Related courses are tax-free if:

1. Courses are not part of a minimum requirement to obtain the job.2. Courses are not taken to qualify the employee for a promotion or transfer to a

different type of work (same employer and another employer).3. Education is related to the employees current job and helps maintain or improve the skills required for the job.

4. If the job requirements change while the employee is working, education tomeet the new requirements is job related.

Any non job-related courses (whether undergraduate or graduate) are tax-free up to$5,250 per year. This element can not be entered into Time Entry.

EDUCATION ASSISTANCE T 153 - Any non job-related courses are taxablethat exceed $5,250 per year. This law was put in place by the Economic Growth

and Tax Relief Reconciliation Act of 2001. The Act expires at the end of 2010 sothe taxability of Education Assistance could change. This element can not beentered into Time Entry.

Class: Non-payrollPayment

Category: EducationAssistanceType: Non-RecurringRule: Flat Amount

For more information, see IRS Publication 17, Your Federal Income Tax, Section27 Tax benefits for Work-Related Education. http://www.irs.gov/pub/irs-

pdf/p17.pdf

GTL IMPUTED INCOME 172 - Eligible employees can enroll in Devereuxsgroup life insurance plan, which is designed to help employees plan for their familys financial needs in the event of the employees death. The amount

employees are covered is twice their annual salary up to $200,000 ($100,000 for Texas employees). The cost of this insurance is fully paid by Devereux, however if the coverage amount is above $50,000, employees are taxed on the cost of theinsurance.

Class: Imputed EarningsCategory: Group TermLifeType: RecurringRule:

Payroll does not have any responsibility in establishing this earning. This is doneentirely by HR when they enroll the employee into group term life insurancecoverage. This element is an in-and-out earning and deduction, which means thatthe element is paid to the employee as an earning, taxes are taken on the paymentand then amount of the payment is deducted in the same paycheck.
http://www.irs.gov/pub/irs-pdf/p17.pdfhttp://www.irs.gov/pub/irs-pdf/p17.pdfhttp://www.irs.gov/pub/irs-pdf/p17.pdfhttp://www.irs.gov/pub/irs-pdf/p17.pdf


21/27


AMERICAN EXPRESS 162 - The American Express earning is paid toemployees for three reasons; perfect attendance, service awards and retirementrecognition. Full time employees who earn less than $60,000 annually are eligiblefor a perfect attendance award if no HML days are used during a six-month period.

The award is given twice a year to qualifying employees in the form of anAmerican Express Gift Check. After the gift checks have been distributed to theemployees, a feed to the payroll system pays each of these employees $100 inAmerican Express element. This element is an in-and-out earning and deduction,which means that the element is paid to the employee as an earning, taxes are takenon the payment and then the amount of the payment is deducted in the same

paycheck. This element can not be entered into Time Entry.

Class: Imputed EarningsCategory: Non CashAward Type: Non-Recurring

Rule: Flat Amount

The second instance when employees can receive a prize & award is when full timeemployees reach their five-year anniversary. At this point, they qualify for a $100

American Express Gift Check. Similar to the perfect attendance award, this isnotated to the employees record and taxed through the prizes and awards HED.Below is a list of the cash awards employees receive on the indicated anniversaryyears:

ANNIVERSARY AWARD ANNIVERSARY AWARD5 $200 30 $45010 $250 35 $50015 $300 40 $55020 $350 45 $60025 $400

Employees, age 55 and over, who retire from Devereux are recognized with anAmerican Express Gift Check at the time of their retirement for their years of service. Similar to the perfect attendance and service awards, this is notated to theemployees record and taxed through the American Express element. Below is alist of the cash awards employees receive upon their retirement:

YEARS OF SERVICE AWARD10 to 14 $10015 to 24 $25025 or more $500

Gift Cards Imputed This element would be used to add gross and taxable wagesto an employees YTD balances when they receive a gift card for an award or prize.This element is an in-and-out earning and deduction, which means that theelement is paid to the employee as an earning, taxes are taken on the payment and then the amount of the payment is deducted in the same paycheck. This elementcan not be entered into Time Entry.


22/27


MISC TAX REIMBURSEMENT 159 - At the time the American Express or GiftCards Imputed amounts are loaded into the Oracle system, a miscellaneous taxreimbursement can also be paid to the employee to cover the cost of the taxes on themoney. Essentially, instead of grossing up the American Express amount to cover the taxes, we are paying the employee an additional earning instead. The element is

an option and does not have to be paid along with the American Express or GiftCards Imputed elements. This element can not be entered into Time Entry.

Class: SupplementalCategory: BonusType: RecurringRule: Flat Amount

AMERICAN EXP NET This element is a supplemental earnings that is grossed up and must be used in conjunction with the offset deduction element. If the offsetdeduction element Am Exp Offset is not used, the employee will be paid the moneyagain. In addition, the compensation and deduction elements must be processed when the employee has regular wages to be paid for the pay period. Otherwise, theemployee will error out of the payroll batch. After the element is processed it willappear on the employees SOE as if the system created another check for theemployee. However, this is not the case as the element is only processed

separately. It does not create a separate check or deposit advice for the employee.

GIFT CARDS NET This element is a supplemental earnings that is grossed upand must be used in conjunction with the offset deduction element. If the offsetdeduction element Gift Card Offset is not used, the employee will be paid themoney again. In addition, the compensation and deduction elements must be

processed when the employee has regular wages to be paid for the pay period.Otherwise, the employee will error out of the payroll batch. After the element is

processed it will appear on the employees SOE as if the system created another check for the employee. However, this is not the case as the element is only

processed separately. It does not create a separate check or deposit advice for the

employee.RELOCATION EXPENSE TAXABLE 164 - Occasionally, when an employeetransfers to a center in a new state and they must relocate themselves and their family, Devereux will reimburse the employee some of his or her moving expenses.Because certain moving expenses do not qualify as a non-taxable benefit, thismoving expense payment would tax the earning paid to the employee. Thiselement can not be entered into Time Entry.

Class: SupplementalCategory: Moving ExpenseType: Non-RecurringRule: Flat Amount

RELOCATION EXPENSE NT 169 - Occasionally, when an employee transfersto a center in a new state and they must relocate themselves and their family,Devereux will reimburse the employee some of their moving expenses. Becausecertain moving expenses qualify as a non-taxable benefit, this moving expense

payment would not tax the earning paid to the employee. This element can not beentered into Time Entry.

Class: SupplementalCategory: Moving Expense

Type: Non-RecurringRule: Flat Amount


23/27


Only corporate HR and corporate payroll handlemoving expense reimbursement payments. Center

payroll should NEVER pay an employee aRelocation Expense Taxable or Relocation Expense

NT payment.

RELOCATION MEALS 166 Occasionally, when an employee transfers to acenter in anew state and they must relocate themselves and their family, Devereuxwill reimburse the employee for meals associated with the relocation. Becausemeals are always taxable to the employee and must be report on the W2, thiselement will add the taxable income to the employees wages. This element cannot be entered into Time Entry.

Class: SupplementalCategory: Moving ExpenseType: Non-RecurringRule: Flat Amount

SPECIAL SHIFT PREMIUM 020 This element is to cover any shift that is notaccommodated by Shift Differential, Shift Differential OT, Nurses ShiftDifferential, Nurses Shift Differential OT, On-Call Differential and Weekend Shift.

Class: EarningsCategory: Premium

Type: Non-RecurringRule: Hrs X Rate

AUTO ALLOWANCE RECURRING 154 This element is used when anemployee is approved to receive a Non-Accountable Plan auto allowancereimbursement for frequent Devereux travel. This element is only used when theauto allowance was approved for an indefinite period of time. Non-AccountablePlan means:

1. The expenses must have incurred while performing services as an employee

2. Expenses must be adequately accounted to the employer within a reasonabletime period, and

3. Any excess reimbursement or allowance must be returned to the employer within a reasonable time period.

This element can not be entered into Time Entry.

AUTO ALLOWANCE NR The only difference between Auto allowance NR and Auto Allowance Recurring is this element is a one-time payment. Thiselement can not be entered into Time Entry.

Class: SupplementalCategory: CobraReimburseType: Non-RecurringRule: Gross Up

COBRA REIMBURSEMENT 178 This element is used to reimburse employeefor their cobra costs from their previous employer. Normally, these types of agreements are made during hiring an individual. This element can not beentered into Time Entry.

DEDUCTION ELEMENTS CHILD SUPPORT ORDER - Deductions for withholding orders that require anemployer to withhold a certain percentage of an employees disposable income for child support purposes. Once a child support deduction is established, it should not

Class: InvoluntaryDeductionsCategory: Child SupportOrder Type: Recurring


24/27


be inactivated without an order to suspend withholding. For more information and specific examples of child support garnishments see Chapter XX - Garnishments.

Oracle will automatically take the allowable statechild support fees.

FEDERAL TAX LEVY - A federal tax levy is a garnishment order issued by thefederal government to employees who fail to pay their federal income taxes in atimely manner. Federal tax levies are issued on Form 668-W, Notice of Levy onWages, Salary and Other Income . For more information and specific examples of federal tax levies see the Garnishments section.

Class: InvoluntaryDeductionsCategory: Tax LevyType: Recurring

Class: InvoluntaryDeductionsCategory: Tax LevyType: Recurring

TAX LEVY - A state or local tax levy is a garnishment order issued by a state or local government to employees who fail to pay their state or local income taxes in atimely manner. Tax levies differ in appearance for all taxing jurisdictions. For more information and specific examples of state tax levies see the Garnishmentssection.

CREDIT DEBT - Are unpaid debt an employee has with a person or company theyare obligated to pay for services or goods. A court will issue credit debtgarnishments after the creditor proves the employees burden. For moreinformation and specific examples of credit debt garnishments see theGarnishments section.

Class: InvoluntaryDeductionsCategory: Credit DebtType: Recurring

Class: InvoluntaryDeductionsCategory: EducationalLoanType: Recurring

EDUCATION LOAN The Higher Education Act allows for garnishment of employees wages to repay delinquent loans. For more information and specificexamples of student loan garnishments see the Garnishment section.

BANKRUPTCY ORDER Bankruptcy is governed by the federal BankruptcyAct. Once an employee voluntarily declares bankruptcy or is found to be bankrupt

by a court, the satisfaction of the employees creditors is handled by thebankruptcy trustee appointed by the court. For more information and specificexamples of student loan garnishments see the Garnishment section.

Class: InvoluntaryDeductionsCategory: BankruptcyOrder Type: Recurring

GARNISHMENT There are instances when an employer can deduct amountsform an employees wages to satisfy garnishment orders from a court or government agency or to satisfy a voluntary assignment of wages by an employeeto some third party, even if the deduction reduces the employees wages below theminimum required by the FLSA. The payment of the deducted amount to the third

party is considered the same as payment to the employee, so long as the employer derives no profit or other benefit from making the deduction.

Class: InvoluntaryDeductionsCategory: GarnishmentType: Recurring


25/27


STAFF ADVANCE 550 - There are instances when an employee can oweDevereux money for petty cash or accounts payable advances. For instance,employees can receive petty cash or an accounts payable check as an advance tocover expenses they will incur on a business trip. When the expenses total less thanthe amount of the advance, they will owe Devereux the difference. In this scenario

a staff advance would be established to deduct the money the employee owed fromhis or her paycheck. Preferably, the total amount owed would be recovered in thenext payroll, however in some instances if it were a large sum it may be possible,with the proper authority, for the employee to pay the amount back in installments.

Class: InvoluntaryDeductionsCategory: GarnishmentType: Recurring

The staff advance deduction should not be used if the employee was overpaid asmall number of hours. For instance, if an error was made and an employeereceived 88 hours of time entry wages and should have only received 80, in the next

payroll a negative 8 hours of time entry wages would be processed for thatemployee. Generally speaking, if the money owed to Devereux is identifiable by a

particular earning overpaid to the employee and we can recoup it in the next

payroll, then the staff advance deduction should not be used.

PAY BACK WAGES 549 There are instances when an employee can oweDevereux money for overpayment of wages. For instance, if for some reason anemployee was overpaid a wrong rate for a period of time and it was not discovered until a substantial amount was overpaid. Because the employee was not overpaid hours, but only wages, the Pay Back Wages element would be set up on theemployee entries form to take back the overpayment of wages. This element is setup to take the money back gross of taxes. Which means the system will lower thetaxable wages for the pay check the element entered. So although the employeeoverpaid taxes while he or she was overpaid, the employee will receive the net back

because the taxes will be lower when this element is used because the taxablewages will be lower.

REPLACE EQUIPMENT 551 Sometimes, it is necessary to have an employeerepay Devereux for damages or lost equipment such as cell phones and laptops.When deducting money from an employee for these types of things it would be best

practice to ensure the employee is never reduced below minimum wage. Anemployee should always sign an agreement stating the amount being deducted each

pay period and the reason the money is being deducted.

Class: VoluntaryDeductionsCategory:EquipmentType: Recurring

UNIFORMS 555 When allowed by law, a center may deduct for uniforms that

were issued to an employee. When deducting money from an employee for uniforms it would be best practice to have an employee sign an agreement.

Class: Voluntary

DeductionsCategory: UniformsType: Recurring

BACKGROUND CHECK 735 When allowed by law, this element is set up todeduct the cost of a background checks required upon hiring.

Class: VoluntaryDeductionsCategory: UniformsType: Recurring

Class: VoluntaryDeductionsCategory: EquipmentType: Recurring


26/27


CELL PHONE If an employee is issued a cell phone for business reasons and makes personal calls, employee can be deducted for the personal expenses incurred.Make sure the employee signs an agreement before the deductions are taken.

Class: VoluntaryDeductions

Category: EquipmentType: Recurring

MEAL CARD 591 If a center has a cafeteria they may allow an employee to

purchase prepaid meal cards. An employee must sign an agreement with the stated amount.

CAMPAIGN FUND 705 Employees can elect to contribute a portion of their salary to Devereux. If a center is currently soliciting donations for a specificcampaign drive, this element would used to deduct the contribution from theemployees paycheck. The contribution can be set up as a one-time amount or as anamount deducted over a specific timeframe. The next section will discuss how toset these deductions up.

Class: VoluntaryDeductionsCategory: CampaignFund Type: Recurring

GENERAL OPS SUPPORT 730 Another fund that an employee can elect to

contribute part of his or salary to is the general operations of their particular center.This donation assists Devereux to cover our operating expenses. The contributioncan be set up as a one-time amount or as an amount deducted over a specifictimeframe. The next section will discuss how to set these deductions up.

Class: Voluntary

DeductionsCategory: GeneralSupportType: Recurring

ENDOWMENT FUND 731 This contribution also goes to a particular center,however the center can only use the interest earned on the money donated.Devereux maintains the principal for use in the future. The contribution can be setup as a one-time amount or as an amount deducted over a specific timeframe. Thenext section will discuss how to set these deductions up.

Class: VoluntaryDeductionsCategory: EndowmentFund Type: Recurring

UNITED WAY 745 Employees can make a contribution to United Way throughDevereux. Devereux sends employee donations to United Way on their behalf.When employee elects to donate to United Way, Devereux does receive a small

piece of this contribution as well. The contribution can be set up as a one-timeamount or as an amount deducted over a specific timeframe. The next section willdiscuss how to set these deductions up.

Class: VoluntaryDeductionsCategory: United WayType: Recurring

SAVING BOND 750 - Another voluntary deduction employees can elect to havewithheld from their paychecks is for the purchase of savings bond. Employees canenroll in the savings bond plan and request a certain amount be deducted from their

paycheck to go towards the purchase of savings bonds. Devereux remits this

money to the Federal Treasury and purchases bonds on behalf of the employees.Currently, Devereux offers only the Series EE bonds but may offer I-bonds in thefuture. Series EE bonds are offered in $100, $200, $500 and $1000 denominations.The cost of these bonds is one half of the face value of the bond denomination.Employees can elect to have the total cost of the bond withheld from their paycheck each payroll in which case they would purchase a bond every time they are paid.Employees can also elect to have a deduction less than the cost of the bond withheld, in which case, a bond would not be purchased on behalf of the employeeuntil the total deductions equaled the cost of the bond. For additional informationon how to set up savings bond deductions, refer to the next section.

Class: VoluntaryDeductionsCategory: SavingsBond Type: Recurring


27/27


REGULAR ANNUITY As of the first day of employment, employees can beginto voluntarily contribute to Devereux's retirement plan. They can contribute their money to one of two accounts. This element accumulates money for the RA(retirement annuity) account. Employees elect a percentage of their base pay that

they wish to contribute on a per pay basis. This election is a pre-tax contributionfor federal tax purposed and in some states, which means taxes are paid on the gross

pay minus the retirement annuity contribution. Contributions to this pension fund are a way for employees to save for retirement while taking advantage of a tax

break. The RA account is slightly restrictive thus money cannot be moved in and out of certain funds fairly easily; because of this, this account earns a % higher interest rate than the SRA annuity.

Class: Pre-TaxDeductionsCategory: Deferred Comp

Type: Recurring

SRA ANNUITY - As of the first day of employment, employees can begin tovoluntarily contribute to Devereux's retirement plan. They can contribute their money to one of two accounts. The 805 HED accumulates money for the SRA

(supplemental retirement annuity) account. Employees elect a percentage of their base pay that they wish to contribute on a per pay basis. This election is a pre-taxcontribution for federal tax purposed and in some states, which means taxes are

paid on the gross pay minus the supplemental retirement annuity contribution.Contributions to this pension fund are a way for employees to save for retirementwhile taking advantage of a tax break (their taxable income is reduced by the

percentage contribution they elect). If employees were looking for a less restrictiveaccount in that they want to be able to move money easily, the SRA account would

be the better option. However to have this convenience, the interest earned on theaccount is % lower than the RA account.

Class: Pre-TaxDeductionsCategory: Deferred CompType: Recurring

AM EXP OFFSET Is a deduction that must be used in conjunction with theAmerican Exp Net element. The element will deduct the net amount of theAmerican Express check that was given to the employee. After the element is

processed it will appear on the SOE as if the deduction is being taken from theregular earnings. However, this is not the case. Both the supplemental earningselement and the deduction element will be printed on the same check or depositadvice.

GIFT CARD OFFSET - Is a deduction that must be used in conjunction with theGift Cards Net element. The element will deduct the net amount of the Gift Card that was given to the employee. After the element is processed it will appear on theSOE as if the deduction is being taken from the regular earnings. However, this isnot the case. Both the supplemental earnings element and the deduction elementwill be printed on the same check or deposit advice.

SPECIAL INPUTS ELEMENTS All elements will have a corresponding special inputs element. Special Inputselements are used to make adjustments to elements or to process a one-timededuction. The Special Inputs element has two input values: Replace Amount and Additional Amount. Use Additional amount to add or subtract an amount to a runresult Use Replace Amount to override the formula calculation

Chptr9 Elements Revised Apr 07

Documents

Transcript of Chptr9 Elements Revised Apr 07