Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
October 2013
Disclaimer
The following is intended to outline our general product direction. It is intended for information purposes only,
and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing decisions. The development, release, and
timing of any features or functionality described for Oracles products remains at the sole discretion of Oracle.
Table of Contents
FLSA Status....................................................................................... 2
Employee Information ........................................................................ 3
Create an Overtime Period Manage Time Definitions ....................... 5
Associating an Overtime Period to a Payroll ...................................... 10
Override Overtime Period ................................................................ 10
Element Creation ............................................................................. 12
Salary .......................................................................................... 12
Create Salary Basis ...................................................................... 13
Assign Salary Basis to Employee ................................................... 14
Standard Overtime Element ......................................................... 15
Premium Overtime Element ......................................................... 18
Augment Elements ........................................................................... 24
This document is intended to guide the user through the configuration steps
necessary for the use of FLSA processing in Oracle Fusion HRMS (US).
FLSA Status
Oracle Fusion HRMS (US) determines Fair Labor Standards Act (FLSA) eligibility
based on the job assigned to the employee. Employers define the job as non-exempt in
the FLSA Status field found in the United States Job Information region (refer to the
screenshot given below). The Oracle Fusion HRMS (US) applies the FLSA Overtime
calculation rules only when the job for the assignment is nonexempt. If a job exists for
the employee, but the FLSA Status is null or if no job is assigned to an employee, the
default status for the FLSA Status is exempt.
The FLSA Status impacts the premium Overtime calculation if the job is defined as
nonexempt. If an employer elects to pay exempt employees overtime, FLSA does NOT
control the rate, and the employer can pay at straight time, time and a half, or double
time. The employer defines what overtime they want to pay. Under the law, no
overtime has to be paid to the exempt employee. In this case, the premium calculation
of overtime is not performed since it is defined by the employer.
For Fusion, the FLSA Status is stored on the United States Job Information region of
Job Details (Navigation ->Workforce Structures ->Jobs ->Manage Jobs).
Employee Information
Oracle Fusion HRMS (US) determines Fair Labor Standards Act (FLSA) eligibility
based on the job assigned to the employee.
Employers can assign a job to an employee in two places:
When they hire an employee in the job field under employment information tab.
In the Job field under Job Details on the Manage Employment screen.
13. Enter a start date for the overtime period in the First Period Start Date field.
14. Select Element Allocation in the Static Time Period Usages Available region.
10
Note: Multiple assignments under same term should not have different overtime
periods at the Payroll Term Level.
11
Element Creation
The following elements must be setup in the payroll system. Navigation: Payroll
Calculation > Manage Elements
Salary
The user-defined Regular Salary element must be created with a Calculation Rule
of Unit X Rate or Flat amount and processing type Recurring.
12
Note: New elements feed the seeded balances FLSA Hours and FLSA Earnings when
user select Yes to FLSA Rules given in the below screenshot.
13
14
Note: When users save this record, an element entry with the specified start and end date
is automatically generated.
Element must be created as non-recurring. In rules wizard, select Yes for question
Can a person have more than one entry of this element in a payroll period?
15
Create the element eligibility link for this element, and attach it to nonexempt
employees.
For earnings to be associated with a person, employer must create an element entry for
non exempt employees. Periodicity must be set to hourly when element entry is created
for an employee.
16
If the employee has worked overtime on different days in a payroll period, then create
an element entry for each overtime entry and provide an Earned Date value as given, in
the screenshot below. If an Earned Date is not given, then the total overtime amount is
allocated between the overtime periods.
Note: If a rate is not provided in overtime element entry, then hourly rate from salary
basis will be considered for overtime calculation.
Example:
Regular hours worked : 120
Regular rate
: $10/hr
Overtime Hours
: 30
Overtime
= (Overtime Hours)* (Regular rate) * (Multiple)
= (30) * (10)* (1) = $300
17
Element must be created as non-recurring and select Yes for question Can a person
have more than one entry of this element in a payroll period?
18
19
Fusion captures the default Premium Calculation Rate Rule under the Calculation
Defaults, which is at the payroll definition level. The default value is Higher of
Blended or Normal Rate.
Note: If user enters a Rate input value, the calculation noted above does not apply as
the entry of this input value implies an override.
Blended Rate Calculation with Bonus and without Earned Date - Example
An employee earns $10 per hour, works 40 hours, 10 hours overtime, and earns a
bonus of $100 which impacts blended rate.
Straight Time and Straight Time Overtime
= (40 hours * $10/hour) + (10 hours * $10/hour) = $500
Premium Rate
= [( 50 hours worked x $10/hour) + $100 bonus] / 50 hours
= $12/hour * 0.5 = $6/hour
Premium Amount = $6/hour x 10 hours of overtime = $60
Total Amount = $500 (Straight Time and Straight Time Overtime) + $100 (Bonus) +
60 (Premium) = $660
Blended Rate Calculation with Bonus and Earned Date - Example
Regular hours worked : 120
Overtime Hours
: 30
Regular rate
: $10/hour
Bonus
: $1500 on 14-Jan-2010
Pay Period
: semi-monthly (Jan 1 Jan 15)
20
21
22
8 Overtime hours
23
Flow Diagram
Augment Elements
Augments are used to refer to amounts paid that are in addition to the employee's
regular rate of pay and that are considered non-discretionary, such as a commission
or bonus.
The FLSA functionality prorates the augment amounts across all periods during
which they were earned. For example, employer pays employee commissions
monthly and pays the salary semi-monthly. The commission is evenly divided over
the pay periods during the period it was earned with 50% allocated to each semimonthly pay period.
The following steps show how to create an augment element:
24
25
If the augment question value is Yes, then the following processing rules are
automatically set:
1. Calculation rule will be defaulted to Flat Amount.
2. An indirect element named Commission Premium Adjustment is created
when the augment element is defined.
3. Two new input values Earned Start Date and Earned End Date are created.
26
Create an eligibility link for Commission Premium Adjustment and for the base
supplemental element.
Create Element Entry
For earnings to be associated with a person, employer must create an element entry for
the eligible employees and base augment element (Commission).
27
The Earned End Date element entry value must be always less than the base augment
element entrys effective start date.
Note: Once the base augment element entry is created, Oracle Fusion creates one more
element entry for Commission Premium Adjustment with an effective start date as
base augments earned start date element entry value and effective end date as base
augments earned end date element entry value as given in the below screenshot.
User must run the retropay process for the payroll period in which the base augment
element was created. The retropay process picks the Commission Premium
Adjustment element and creates retropay entries for the adjusted premium amount.
28
Copyright 2012, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only and the
contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other
October 2013
warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or
Author:
fitness for a particular purpose. We specifically disclaim any liability with respect to this document and no contractual obligations are
Contributing Authors:
formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any
Oracle Corporation
World Headquarters
500 Oracle Parkway
Redwood Shores, CA 94065
U.S.A.
Worldwide Inquiries:
Phone: +1.650.506.7000
Fax: +1.650.506.7200
oracle.com
means, electronic or mechanical, for any purpose, without our prior written permission.
Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.
Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license and
are trademarks or registered trademarks of SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo are
trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of The Open Group. 0612