Creating pay elements

  1. Select Administrator > Set Up > Payroll > Pay Elements.
  2. On the Pay Elements tab, in the Pay Elements section, click Create.
  3. Specify this information:
    Effective Date
    Specify the date on which the pay element is effective.
    Pay Element
    Specify the name of the pay element.
    Description
    Specify a description of the pay element.
    Active
    The status is active by default. Clear the check box to inactivate it.
    Pay Calculation Type
    Select one of these types:

    • Flat

      The Flat calculation type is for a predetermined amount. If Pay Calculation Type is set to Flat, specify a Default Flat Amount or leave it blank for zero. The value can be changed when a pay element is attached to a resource.

    • Table

      If Pay Calculation Type is set to Table, then the Pay Matrix is required.

    • Sum of Pay Elements

      The Sum of Pay Elements type is for amounts that combine pay elements. If Pay Calculation Type is set to Sum of Pay Elements, then the Pay Element Calculation Rule and Related Pay Elements information are required.

    • Multiple of Pay Element

      The Multiple of Pay Element is for amounts calculated by a factor or multiple of a pay element. If Pay Calculation Type is set to Multiple of Pay Element, then the Pay Element Calculation Rule is required.

    Currency

    Select the monetary unit for this pay element.

    Pay Code

    Select a unique pay code to link the pay element in the Infor Lawson Payroll application or another pay system.

    Pay Rate Type

    Select Hourly, Annual Salary, or Monthly Salary.

    Pay Frequency

    Select how often payment is made.

    GOSI Pension Allowance

    To include a specific pay element in the General Organization for Social Insurance (GOSI) Pension Salary computation, select Housing, Transportation, Social, or Other type of Allowance. If this field is left blank, then this pay element will not be considered in the GOSI Pension Salary computation and will only serve as informational data.

    Eligibility Group

    Specify the custom groups to limit the use of this pay element to those who meet the eligibility criteria. If this field is left blank, then this pay element can be used for any resource.

    Include In Interface

    Select the check box to include this pay element in the interface file.

    Display In Contract

    Select this check box to use this pay element as a variable text in a contract.

    Contract Text

    When Display in Contract is checked, specify the text phrase pertaining to pay element information to be included in the contract.

    Informational Only

    Select this check box if this pay element is for informational purposes only.

    Include In Total Pay Rate

    Select this check box to include the pay element in the total pay rate.

  4. Click Save.
  5. If the Pay Calculation Type for this pay element is Sum of Pay Elements, then create a pay element calculation rule.
    1. Click the Pay Calculation Rule tab.
    2. In the Pay Element Calculation Rules section, click Create.
    3. Specify this information:
      Effective Date

      Specify the date on which the pay element calculation starts.

      Pay Element Calculation Rule

      Specify the name for the pay element calculation rule.

      Description

      Specify the description for the pay element calculation rule.

      Active

      The status is active by default. Clear the check box to inactivate it.

      Pay Calculation Type

      Select Sum of Pay Elements.

      Default Sum Amount

      This is the default amount from the pay element definition and the user is allowed to change that amount if needed. This amount is required.

      After a Sum Of Pay Elements Calculation is created, the pay elements that make up that sum must be added.

  6. If the selected Pay Calculation Type is Multiple of Pay Element, then create a pay element calculation rule.
    1. Click the Pay Calculation Rule tab.
    2. In the Pay Element Calculation Rules section, click Create.
    3. Specify this information:
    Effective Date

    Specify the date on which the pay element calculation starts.

    Pay Element Calculation Rule

    Specify the name for the pay element calculation rule.

    Description

    Specify the description for the pay element calculation rule.

    Active

    The status is active by default. Clear the check box to inactivate it.

    Pay Calculation Type

    Select Multiple of Pay Element.

    Use Base Pay

    Select this check box if this is a multiple of a specific resource's base pay. (Base pay cannot be altered.)

    Prerequisite Pay Element

    Select a prerequisite pay element (only when Use Base Pay is not checked).

    Multiple

    Specify the multiplier number for the selected value or base pay.

    Amount and Currency

    Specify the derived amount that is displayed when Use Base Pay is not checked.

  7. If the selected Pay Calculation Type is Multiple of Pay Element, then create a related pay element.
    1. Click the Pay Calculation Rule tab.
    2. In the Related Pay Elements section, click Create.
    3. Specify this information:
    Effective Date
    Specify the date on which the pay element calculation starts.
    Pay Element
    Specify the name for the pay element.
    Active
    The status is active by default. Clear the check box to inactivate it.
  8. If Pay Calculation Type is Table, then define the fields.
    1. Click the Pay Matrix tab.
    2. Click Create.
    3. On the Details tab, specify this information:
      Pay Matrix
      Specify a name for the pay matrix. Optionally, provide a description.
      Version Date
      Select a version date.
      Active
      The status is active by default. Clear the check box to inactivate it.
    4. Click Save.
    5. On the Rows tab, click Create.
    6. Specify a name for the row and click Save.
    7. On the Columns tab, click Create.
    8. Specify a name for the column and click Save.
    9. On the Elements tab, click Create.
    10. Select the row and the column, and specify an element. For example, 1.00000.
    11. Click Save.
    12. On the Matrix tab, click Create.
    13. Complete the values in the table and click Save.
      No precision is defined when the values are specified. The precision is defined when the element from the pay matrix is tied to an actual pay element.
  9. Pay elements can now be associated with a resource's work assignment.

    See Creating or updating a work assignment for a resource.