In Oracle HCM, adding a Recurring Allowance Element for an employee allows for regular, automatic payments beyond base salary, such as housing, transport, or meal allowances. Here’s how Payroll or HR specialists can set up a recurring allowance:
Steps to Enter a Recurring Allowance Element for an Employee
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Access the Payroll Dashboard:
Navigate to the Payroll or HR Specialist Dashboard in Oracle HCM. -
Find the Employee:
Use the Employee Search tool to locate the specific employee to whom you want to assign the recurring allowance. -
Navigate to Manage Elements:
Within the employee’s profile, go to Payroll > Manage Elements or Element Entries, depending on your system’s setup. -
Add a New Element Entry:
Select Add to enter a new element for the employee. -
Select the Allowance Element Type:
From the list of element types, select the Recurring Allowance element type that corresponds to the allowance you want to apply, such as “Housing Allowance” or “Transportation Allowance.” -
Define Allowance Details:
- Start Date: Choose the start date for the allowance. This is often aligned with the beginning of a payroll period.
- Amount: Enter the fixed amount that the employee will receive with each payroll cycle.
- Frequency: Ensure the frequency is set as Recurring (e.g., monthly, bi-weekly) to allow automatic inclusion in each payroll period.
- End Date (optional): If the allowance is temporary, enter an end date.
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Save the Entry:
Confirm the details and save the element entry. The recurring allowance will now be added to the employee’s payroll calculations each cycle until the end date (if specified) or until it is manually removed.
Important Considerations
- Tax and Deductions: Ensure that the allowance is correctly configured for tax and other deductions.
- Payroll Review: Double-check the allowance setup before the next payroll run to verify it appears correctly on the employee’s payslip.
- Audit and Compliance: Ensure proper authorization and documentation for recurring allowances to comply with internal policies.
This setup helps manage regular allowances efficiently, ensuring that employees receive accurate and consistent payments as part of their compensation package
We can enter a recurring allowance element for an employee, a cell phone allowance, for example