ERPWebTutor confidential

Fusion HCM Payroll Training – Day 4

An ERPWebTutor Presentation

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Day 4 - Agenda
• Q&A from Day 3
• Chapter 12: Elements Setup
➢ Earning elements (Standard and Supplemental)
➢ Deductions (Voluntary and Involuntary)
➢ Deferred Compensation (401k)
➢ Processing priorities
➢ Frequency rules
➢ Element Eligibility – deep dive

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

From Day 3 session

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Understanding Elements

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: What are elements in Fusion Payroll

• Elements are the building blocks for payroll processing.
• Can be of the type: earnings, deductions, taxes etc.
• Configured using predefined templates
• Never create an element with name Overtime. It is a reserved term, and including it
in user-defined elements interferes with balance initializations.
• Always created under a legislative Data Group
• Essential for integration with absence and Time and Labor

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Elements – Processing Priorities

• You can set a predefined sequence in which a payroll run will process elements. An
element's primary classification defines a default processing priority for the element in
payroll runs. Lower priority numbers process first.
• Most classifications also have a priority range.
• Can be overridden as well

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Elements – Input Values

• Input values for elements get created

automatically based on the element
classification. However additional input
values can be added if required.

Examples:
Store the legacy pay code
Store a specific value to be used in fast
formula etc.

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Elements – Processing Rules

Formulas define many of the rules that control the processing of an element. A processing
rule specifies which formula to use based on a person's assignment status. It also defines
rules to apply to the results the formula returns. For example, one result might update the
input value for a different element. Another result might issue a warning, or assign an end
date to a recurring entry.
Direct Result: The formula output feeds to
the element itself
Indirect Result: The formula output feeds
to another element’s input value
Message: Returns a message

Results Returned: Items returned by the

fast formula

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Elements – Frequency Rules

• Standard behavior is to process the element is all pay periods. Use frequency rules only
for exceptions.

• Use frequency rules when you need to process a recurring element at a frequency
other than that defined for the payroll. For example, you can deduct a medical plan
contribution on the 2nd pay period of the month or the first 2 pay periods of the
month.

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Element Eligibility

• Use this to specify who can receive entries for an element by defining eligibility
criteria.
• An element can have multiple eligibility rules, each defining a different set of eligibility
criteria.
• You can apply the automatic entry option to any eligibility rule, causing all persons who
meet the criteria for that rule to receive entries automatically.

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Element Eligibility..contd

• Use this section to set the defaults for input values based on eligibility criteria

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Element Eligibility..contd

• Use this section to enter the costing against the eligibility for one or more input value

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Earnings Elements – Eligibility

You must define element eligibility for the following elements for costing.
Primary Classification Secondary Classification Element generated from template Input value
Earnings Calculated
Note: If you also need to cost hours, you
must cost the appropriate hours input
Standard Earnings All secondary classifications <User Element> Results value in the Results element.
Supplemental Earnings All secondary classifications <User Element> Results Earnings Calculated
Imputed Earnings All secondary classifications <User Element> Results Earnings Calculated
Nonpayroll Payment All secondary classifications <User Element> Results Earnings Calculated
Pretax Deductions Deferred Compensation 401k <User Element> Results Deduction Calculated
Deferred Compensation 401k Catch
Pretax Deductions Up <User Element> Results Catchup Deduction Calculated
Pretax Deductions All other secondary classifications <User Element> Results Pay Value
Employee Tax Deductions
(See the Employee and Employer Tax
Elements section below for additional
details.) All secondary classifications <Seeded Element> Tax Calculated
Employer Liabilities <User Element> Employer Match
(specific to Deferred Compensation) Results Employer Match Calculated
Employer Liabilities All secondary classifications <User Element> Results Pay Value
Involuntary Deductions All secondary classifications <User Element> Results DeductionsCalculated

<User Element> Organization Fee

Results
<User Element> Processing Fee
Results
Involuntary Deductions All secondary classification – Fees <User Element> Person Fee Results FeeCalculated
Voluntary Deduction All secondary classifications <User Element> Results Pay Value

Additionally, you must define eligibility for the predefined US Taxation element as an open link.

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Earnings Elements – Eligibility

Wherever applicable, you must cost the following predefined employee and employer tax
elements:

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Earnings Elements – Eligibility

Wherever applicable, you must cost the following predefined employee and employer tax elements:

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Earnings Elements – setup examples

• Creating a standard regular earnings e.g. Regular Salary (for salaried employees)
• Creating a standard regular earnings e.g. Regular Wages (for hourly employees)
• Creating a regular hours e.g. Regular Hours (to pay hourly employees)
• Creating a Supplemental gross-up earnings element (e.g. Relocation Expenses)

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Assignment : Create earnings elements

• Creating a standard Overtime Earnings e.g. XX Overtime Hours (for hourly employees)
• Creating a non-worked earnings (e.g. XX Vacation Payment)

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Deferred Compensation

• Deferred compensation plans allow you to save for retirement on a pretax or after-tax
basis.
• Employees can choose to participate in a plan and contribute pre-tax or post-tax
dollars.
• In most cases, the pretax deferred wages are not subject to federal income tax or state
income tax withholding at the time of deferral. However, they are included as wages
subject to Social Security, Medicare, and Federal Unemployment taxes.

e.g. a 401k or some other retirement plan

We will show you how to setup the elements for pre-tax and post-tax retirement plans
• Create a pretax 401k plan element (with post tax and catch-up components)

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: 401k Element setup

• Cannot start the name with a number
• DO NOT Use names like Pre-tax if you
wish to generate the post tax, Roth etc.
elements in the consolidated approach

• If not using Cloud Benefits to manage

401k and client has single assignment
then use the Assignment level option.
It allows greater flexibility for costing

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: 401k Element setup

• If Percentage of earnings option is

selected you must select No
• For Flat Amount Options, you should
set the Yes option

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: 401k Element setup

• As of 2017, on top of the $18,000 regular limit to a 401(k) plan, workers 50 and older
can add $6,000 per year in catch-up contributions, which are aimed at helping
individuals save enough for retirement.
• Employer match is rare for catch up contributions

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: 401k Element setup

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: 401k Element setup

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: 401k Element setup

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: 401k Element setup

This will create multiple elements depending upon your selection. Create eligibilities as
shown below:

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Chapter 12: Deductions Elements – setup examples

• Creating a Voluntary Deduction element e.g. Union Dues
• Creating a Pretax deduction e.g. Medical Pretax
• Creating an Involuntary Deduction element e.g. Child Support

After creating the elements, follow the element eligibility guidelines to add the
appropriate eligibilities.

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Create the Voluntary deduction elements starting with your initials

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com

ERPWebTutor confidential

Thank you

Visit us at www.erpwebtutor.com

ERPWebTutor – Virtually a live tutor with you visit us at www.erpwebtutor.com