Mapping a Payset with a Pay Element - A summary of the activity
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Through this activity, you can map pay elements to a specific payset. You can also modify the existing mapping or delete the mapping done earlier.
Pay elements are the various atomic components of a pay structure, combinations of which form the pay structures for different employees. Examples of pay elements are Base Salary and House Rent Allowance. To ease the processing of payrolls, those employees whose salaries contain similar combinations of pay elements are grouped, to form a payset. A payset can also group those employees whose pay structures maintain similar inter-relationships between pay elements. In an Executives Payset, for example, the HRA could form 50% of the Basic, while in a Staff Payset the HRA could form 30% of the Basic. Employees are mapped to paysets in the “Payroll Setup” component.
A payset becomes meaningful only when you attach specific pay elements to it. Through this activity, you can specify the various pay elements that will constitute a specific payset. Note that a pay element can be mapped to multiple paysets. When a pay element is attached to a payset, it implies that the pay element will apply to all the employees who are mapped to this payset. System-defined pay elements such as “Net Pay” and “Gross Pay” are not to be mapped to any payset
Assigning Priority: While mapping pay elements to a particular payset, you are to specify the order or priority in which the pay elements are considered for payroll processing. The pay element with priority 1 will be computed before the pay element with priority 2 is computed.
Priority is assigned based on whether a pay element is independent or derived. Independent pay elements are given priority over the derived pay elements. For example, there are two pay elements, Base Salary and Dearness Allowance. The value of the Dearness Allowance is defined as 50% of the Base Salary. Because Dearness Allowance is derived from Base Salary, priority is to be given to the Base Salary over Dearness Allowance.
Mapping to Process Periods: You are to define the range of process periods for which the mapping is effective. This indicates that the mapping of the pay element to a payset will be valid only for the specified process periods. A process period is defined as the date range during which a specific payroll is processed.
Modifying Pay Element Attributes: Although the attributes of each pay element are all defined at the time you define the pay element, many of these attributes may change when you map it to a payset. This depends on the specific payset to which it is mapped. For example, HRA for Managers could be 70% of the base salary while HRA for Executives could be limited to 40% of the base salary. This calls for the need to define certain attributes of the pay element only when the pay element is being mapped to a payset.
You can modify these pay element attributes now, only if you had chosen the option to facilitate changes to the attributes of the pay element that you defined in the “Create Pay element” activity. If you had specified the contrary, these attributes cannot be modified. The attributes of the pay element are described below
Recurring: If the pay element forms part of the salary at a stated interval, it is called a recurring element. Example, House Rent Allowance
Taxable: If the pay element is subject to tax, it is called a taxable element. Example, Basic
Separate Round off: You have the choice of separately rounding off a pay element. When you choose this option, the system automatically creates an account in General Ledger, to which the difference in amount after the rounding off will be posted.
If you do not choose the separate rounding off option, the system still rounds off the pay element value to any rounding factor that you specify. However, the difference in amount after the rounding off will be posted to a common account that is already specified in the System Parameters. .
Payable: You are to indicate whether a pay element is a payable or non-payable. If the pay element is taken for payroll processing, it is defined as payable. Non-payable elements are not taken for payroll processing.
Carry Over: You can indicate whether a pay element can be carried over to the future process periods or not when the salary does not suffice for recovery. Carry over indicates that the pay element value is carried to the subsequent process periods. For example, $3000 is recovered from an employee but the available balance is only $2000. If the pay element attribute is set as carry over, you indicate that the amount due can be carried over to the subsequent process periods. I.e. you can recover the amount due i.e. either $1000(3000-2000), or $3000 in the subsequent process periods. The amount recovered will be dependent upon the “Partial Recovery” attribute set for the pay element.
Partial Recovery: You can define whether the value of the pay element can be partially recovered when the salary does not suffice for recovery. Partial recovery indicates that the available amount can be recovered or not.
For example, an employee can avail of a loan of $10000, from the organization. A specific amount, such as $1000, is deducted from the employee’s pay every each process period. For a particular month the available amount is just $600. YOU can indicate the pay element has Partial recovery. This means you can recover $600 from the employee for the process period.
The balance $400 ($1000-$600) will be carried over the consequent process periods only if you had indicated the pay element attribute as carried over.
If the partial recovery attribute has not been set, you cannot recover $600 from the employee.
This method of recovering the amount from the employee is called partial recovery. If the amount is not deducted but carried over to the next process period, it is called carry over.
Element Override MTHP: If you specify that a pay element overrides MTHP, it means that the system will automatically make the entire deduction from the employee’s salary, irrespective of MTHP limit. MTHP is the minimum take-home amount that an employee is given, despite any deductions that exceed his net payable salary. This amount depends upon the statutory regulations of the country or organization’s policy.
For example, an employee’s pay is $10000, his deductions are $7000 and his MTHP is $5000. Since the employee’s MTHP is $5000, only $5000 can be deducted (10000-5000). The remainder $2000 ($7000-$5000) will be carried to the next process period. If you indicate that the element can override MTHP, $7000 is deducted, and the employee’s pay will be $3000 only. If you do not specify that a pay element overrides MTHP, the deduction amount that exceeds the MTHP will be carried over to the next process period.
Linking to an Attendance Type: You must define whether the pay element is linked to an attendance type. If you link the pay element to attendance, it indicates that the value of the pay element is computed, based on attendance. For example, if the Base salary of the employee is $10000 and his attendance for a process period of 30 days is 25, the base salary for the employee will be $8333.
Derived pay elements must not be linked with the attendance type, if the pay elements from which they have been derived are linked with attendance type. For example, you must not link Dearness Allowance with an attendance type, if the Base salary is linked to an attendance type.
In addition, those pay elements you had classified as “Loan”, “Tax” or “Fund” in the “Define Pay Element” page cannot be mapped to attendance.
Determining the Rate of Pay: Once you link the pay element to an attendance type, you are to determine whether the rate of pay is based on calendar or unit.
If a pay element is calendar-based, you must specify the amount for the process period. Calendar-based rate of pay indicates that the amount specified for the pay element is the same for every process period, irrespective of the number of days of which the process period consists. For example, if the base salary of an employee is $3000 and the rate of pay is calendar- based, it indicates that the base salary is $3000 irrespective of whether the process period has 30 days or 25 days.
If the rate of pay is unit-based, you can specify the number of period units and the amount for each period unit. The number of units present in the process period will determine the amount of the pay element. For example, the Dearness Allowance is $100 for one period unit. For a process period of 30 days consisting of 30 period units (assuming that one day is one period unit), the amount of the pay element is $3000. If the process period has 31 days, the number of period units are 31 and the pay element value is $3100.
The Rounding Off Method Applicable: The round factor is the value or unit to which pay element value is adjusted or rounded off. A round factor can be of four types.
Floor type: In this type, the salary is rounded off to the next consecutively lower value that you defined as the round factor.
Ceiling: In this type the salary is rounded off to the next consecutively higher value that you defined as the round factor.
Actual: The salary remains the same without being rounded off.
Nearest: In this type, the salary is rounded off to the nearest whole number.
For example, if the net salary of an employee = $4544.43 and the Round Factor = 10, the value will be as follows:
In “Floor“, the net salary is $4540
In “Ceiling“, the net salary is $4550
In “Actual“, the net salary is $4544.43
In “Nearest“, the net salary is $4540.
Organization Units for which Mapping is Available: Once you map the pay element to a payset, you can make the mapping available to various organization units. When you map to an organization unit, it indicates that the pay element–payset mapping will henceforth be available to the mapped organizational units.
Whether Mapping is Applicable for Arrears: You are to specify whether the payset-pay element mapping that you have defined is applicable to the process periods that are already been processed.
Maintaining a History of the Modifications: Through this activity, you can choose whether the system must maintain a history of the modifications you carry out on the mapping. If so, you must provide the date from which the current mapping will come into effect. The previous mapping will be effective until one day before this date.
Modifying the payset – pay element Mapping: You can modify all the details of the payset – pay element mapping.
Deleting the payset - pay element mapping: You can also delete the payset – pay element mapping from the database.
Getting familiar with the pages inside
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Use the page… |
...to carry our task |
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Selecting a payset for mapping |
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Mapping a payset- pay element |
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Record Element Slab Details |
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Getting help on Pay Element |
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Defining a recurring pay element |
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Defining a non recurring pay element |
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Mapping organization units |
Payset must have been defined in the “Create Payset” activity.
Pay Element must have been created in the “Create Pay element” activity.
Process periods must have been defined in the “Create Process Period” activity.
Attendance must have been defined in the “Create Attendance” activity.
What you can do in this activity
Delete a payset - pay element mapping
You can map pay elements to a payset. You can also define the attributes and value of these pay elements. You can modify the same.
Select a payset in the “Select Payset for Payset – Pay Element mapping” page.
Specify a pay element that has to be mapped in the “Map Payset – Pay Element” page.
Select the attributes of the pay element in the “Map Payset – Pay Element” page.
Specify the value of the pay element in the “ Recurring Pay Element” page if the pay element is of recurring in nature.
Specify the value of the pay element in the “ Non Recurring Pay Element” page if the pay element is of non recurring in nature.
Delete a payset - pay element mapping
You can delete the mapping of a payset and a pay element.
Select a payset in the “Select Payset for Payset – Pay Element mapping” page.
Specify a pay element that has to be deleted in the “Map Payset – Pay Element” page.
Select the “Delete” task to delete the payset – pay element mapping from the database.