We can create an involuntary deduction for an employee such as child support, for example
To create an Involuntary Deduction Element for Child Support in Oracle HCM, follow these steps:
1. Navigate to Payroll Elements
- Go to My Client Groups > Payroll > Elements.
- Click Create to start creating a new element.
2. Enter Basic Information
- Primary Classification: Select Involuntary Deductions (since this is a deduction mandated by legal or court orders).
- Secondary Classification: Choose a relevant classification if available (e.g., Child Support).
- Element Name: Enter a name like “Child Support Deduction”.
- Reporting Name: Enter a reporting name if required, such as “Child Support”.
3. Additional Element Information
- Effective Date: Enter the start date for this deduction.
- Input Currency: Define the currency (e.g., USD).
- Open-ended: Select this if the deduction doesn’t have a predefined end date.
4. Define the Processing Rules
- Process the element at payroll run: Ensure this option is selected so the deduction is processed in each payroll run.
- Recurring: Choose Recurring as child support is generally deducted on an ongoing basis until the obligation ends.
- Priority: Define a deduction priority, as Child Support usually has a high priority among deductions.
5. Specify the Calculation Rules
- Calculation Rule: Determine how the deduction amount is calculated, which may vary by jurisdiction. Common options include:
- Flat Amount: A fixed amount per payroll period.
- Percentage of Disposable Earnings: A percentage of the employee’s disposable earnings after other deductions.
- Predefined Values: Set a base amount or percentage if available; otherwise, leave it open for user input as child support amounts can vary by employee.
6. Configure Element Eligibility
- Go to the Element Eligibility section.
- Click Create to define eligibility criteria for this deduction. You might base it on:
- Employee Group if only certain employees require this deduction.
- Payroll if it applies to specific payrolls.
7. Define the Element Entry Values
- Define any required input values, such as:
- Support Amount: For a fixed deduction amount.
- Percentage Deduction: If the deduction is based on a percentage of earnings.
- Additional input fields may include Start Date and End Date for each deduction, which helps manage individual child support orders.
8. Save and Close
- After configuring all required fields, click Save and Close.
9. Test the Element
- Run a payroll process with a test employee to ensure the Child Support deduction calculates and processes correctly.