Processing Control Flags

Enables you to maintain a range of processing control parameters for the pay element.

To access this window, enter fast path HRPAYELMT and window in to the Process Detail field

Process When

Sick

Enter Y if this fixed pay element is to be applied when an employee is on sick leave for the whole of the pay period, otherwise enter N.

Note: When an employee is absent due to sickness, the Sick All Period field on the Temporary Pay Element Summary screen is used to specify that an employee has been sick for the entire pay period.

On Parental Leave

Enter Y, N or X to specify whether this pay element should be paid in full, part or not at all when the employee is on parental leave during the pay period, depending on the setting in the Part Payable field. Click here for an explanation of the available options.

Note: This field is used in conjunction with the Normal Pay for OMP field in Normal Pay Accumulators. If both fields are set to Y, the calculated OMP amount is paid twice. To pay OMP once per pay period, ensure that only one of these fields is set to Y.

On Advance

Applies to weekly-based payrolls only. Enter Y if this pay element is to be applied to advance payments (fixed and temporary pay elements), F if this pay element is to be applied to advance payments (fixed pay elements only) or N if this pay element is not to be applied to advanced payments.

Note: The On Advance and Only on Hol fields are mutually exclusive. You can enter Y (or F in the case of On Advance) in only one of these fields.

Only on Hol

Specifies whether the pay element is to be used for holiday pay. Enter Y if this pay element is only to be applied when the holiday advance indicator is set, otherwise enter N.

Holiday Spread

You can only use this field if the Only on Hol field is set to Y. Enter Y if the pay element amount is to be divided equally across the weeks in a holiday period and paid each week, or N if it is to be paid in full in each week of the period.

Standard Payrun

Applies to fixed pay elements only. Enter Y if this pay element should be applied in standard payruns, or N if it should not be applied.

Supp Payrun

Enter Y if this pay element should be applied in supplementary payruns, or N if it should not be applied.

Balance

Reducing

Enter Y if this pay element is the type where the employee owes a sum of money and pays a certain amount each pay period until the outstanding balance is zero. For example, a company loan, or a court order.

Accumulating

Used for pay elements that are not related to the tax year, and therefore can overlap the fiscal year-end – for example, bonuses. Enter Y to initiate an employee's accumulating balance (running total). You can periodically clear accumulated balances using Clear Accumulated Balances.

Er’s Acc

Certain pay elements may have an employer’s contribution associated with them. Enter Y if the pay element has an employer’s contribution, and you want to start an accumulated balance for it.

Er's Red

Enter Y to indicate that an employer’s reducing balance is required, for example, where the employer owes a sum of money and pays a certain amount each pay period until the outstanding balance is zero.

Max Periods

Enter the maximum number of pay periods the pay element is to be effective, if applicable.

Balance Recovery

This field is only enabled for N and R type pay elements when either the Reducing field or the Er's Red field is set to Y. Enter Y to automatically deduct any outstanding employee and employer balances in a leaver's final pay cycle.

Other Parameters

Notional

Enter Y if this pay element is to be notionally, but not actually, paid. For example, the payment may be used for the purpose of increasing or decreasing the employee’s liability for income tax, but the actual value of gross pay would not alter.

Part-Payable

Enter Y if the pay element is part-payable, or N or E if it is not part-payable. A pay element is part-payable if a proportion of it is payable when it is not effective for the whole pay period. This may be due to a number of reasons, for example, an employee joining or leaving the organisation. If a pay element is not part-payable, then either all or none of the pay element must be paid depending on the employee's start and end dates (N) or the pay element's start and end dates (E). Temporary pay elements cannot be part-payable.

The entry in the Starter/Leaver Action field affects the processing of both part-payable and non-part-payable pay elements, as described below.

Note: Different types of part-payment calculation are available on ResourceLink. You can set the type of part-payment calculation via the Service Condition Maintenance and Pay Calculation Parameters options. Control Group Pay calculation level is the default, but can be overridden at Service Condition level.

Suppress YTD

This field is only enabled if the Notional field is set to Y. Enter Y to suppress the accumulation of YTD values for this notional pay element. This allows you to prevent the accumulation of meaningless YTD values when notional amounts are held and displayed as annual values such as salary.

Start/Leave

Enter S, L, N, Y or leave blank to determine how the pay element is processed in the period when an employee starts or leaves employment, depending on the setting in the Part Payable field. Click here for an explanation of the available options.

If the Part Payable field is set to Y:
S - pays the pay element for the previous periods (pro-rated if necessary) as well as for the current period provided the Employee Starter field is set to Y and the start date is in a previous period.
L - pays the pro-rated amount for next period as well as for the current period if the employee's leave date is up to 5 days into the next period.
N or blank - disregards the employee's start and end dates that fall outside the current period.
Y - applies the S or L rules as appropriate to starters and leavers respectively.
If the Part-Payable field is set to N:
S - pays the amount of the pay element in full in the employee's starting period, regardless of the employee's start date and pays nothing in the employee's leaving period. Late starters will not be paid for the part period.
L - pays the amount of the pay element in full in the employee's leaving period, regardless of the employee's end date and pays nothing in the employee's starting period. Late leavers will not be paid for the part period.
N - pays the amount of the pay element in full if the employee starts on the period start date, but otherwise pays nothing in the employee's starting period and pays the amount of the pay element in full if the employee leaves on the period end date, but otherwise pays nothing in the employee's leaving period.
Y - pays the amount of the pay element in full in the employee's starting period, regardless of the employee's start date and pays the amount of the pay element in full in the employee's leaving period, regardless of the employee's end date. Late starters will not be paid for the part periods.
blank - pays the amount of the pay element in full if the employee starts on or before the pay date in the employee's starting period and pays the amount of the pay element in full if the employee leaves on or after the pay date in the employee's leaving period.
If the Part-Payable field is set to E:
S - pays the amount of the pay element in full in the pay element's starting period, regardless of the pay element's start date and pays nothing in the pay element's end period.
L - pays the amount of the pay element in full in the pay element's end period, regardless of the pay element's end date and pays nothing in the pay element's starting period.
N - pays the amount of the pay element in full if the pay element starts on the period start date, but otherwise pays nothing in the pay element's starting period and pays the amount of the pay element in full if the pay element ends on the period end date, but otherwise pays nothing in the pay element's end period.
Y - pays the amount of the pay element in full in the pay element's starting period, regardless of the pay element's start date and pays the amount of the pay element in full in the pay element's end period, regardless of the pay element's end date.
blank - pays the amount of the pay element in full if the pay element starts on or before the pay date in the pay element's starting period and pays the amount of the pay element in full if the pay element ends on or after the pay date in the pay element's end period.

If the employee is a late starter who both started and finished in the previous pay period, the payment amount is derived differently, depending on the setting of the Part-Payable field. Click here for an explanation of the available options.

Irregular

Record that this pay element is only used for irregular payments, for example, payment of a bonus. This can affect the treatment of the payment when paying employees after they have left. Enter A for annual payments, I for other irregular payments or leave the field blank.

Rounding

Rounding is used for those pay elements that involve calculations (typically rated payments) and may involve fractions of a penny being calculated. Enter or select D to round fractions down to the nearest whole penny, U to round fractions up to the nearest whole penny or N for Natural rounding (I.e. to round anything below 0.5 of a penny down and to round 0.5 and above up.)

Rounding Factor

This field only applies to N, P or R type pay elements. Enter the rounding factor that should be applied during the payroll calculation to derive the pay element value. The direction of rounding is as per the Rounding field. For example, where the Rounding field is set to N, and the Rounding Factor field is set to 0.50, a value of 33.70 would be rounded to 33.50 and a value of 33.80 would be rounded to 34.00.

This rounding is applied to the final value of a pay element after hours times rates or formulas, and is also applied if the value is an amount taken directly from a fixed pay element. However, a value from a temporary pay element which has not had any formula applied is not rounded, as it is assumed that the input value is the exact amount to use.

Leave this field blank to continue rounding to two decimal places.

Deduction Info

The fields in this section are only enabled if the pay element is for deductions, that is, the field Payment/Deduction on the main Pay Element Definition screen is set to D.

Deduction Priority Order

Enter a number in the range of 0 to 99, where 0 is the highest priority and 99 is the lowest priority. System deduction pay elements (i.e. deduction pay elements in the range 0001 to 0999) have a pre-set priority of 0. Other statutory deductions should be assigned a low priority, whereas savings should have a relatively high priority.

Neg Net Action

Enter the action to be taken when there is negative net pay for the employee, or select one from the drop-down list. You should always set the action to MANPAY against pay elements 0120 and 0121.

Note: Pension elements (except for Stakeholder Pension schemes) and statutory deductions are always taken in full as action type MANPAY, irrespective of any action set for them.

Click here for an explanation of the available options.

Code	Description	Explanation
ALLARR	All Deductions to Arrears Balance	If the system cannot take part of the deduction, it takes none and the whole amount is placed in arrears, to be taken next period if possible.
MANARR	Puts Amount into Arrears	If the system cannot take part of the deduction, it takes as much as possible and places the remainder in arrears, to be taken next period if possible.
MANPAY	Use Negative Net Payments	Uses a negative net payment, by giving the employee more gross pay this pay period using a Negative Net Payment (0120) pay element, and then regaining this amount the following pay period using the Negative Net Recovery (0121) pay element.
OPTDED	Take as Much as Possible	If the system cannot take all of the deduction, it takes as much as possible for that month and ignores any remainder.
OPTION	Ignore if Full Cannot be Taken	Ignores this pay element for this pay period, if the whole of the amount cannot be taken this pay period. The system continues normally in the next pay period.

Note: This can be superseded by an option at Pay Group level, using Pay Calculation Parameters.

Calculated Arrears Balance

Enter Y if arrears calculated for the pay element are to be held on the system as a reducing balance. You can view or maintain this balance using Pay Element Balances Detail.

Grossing Up

This area of the screen is used to indicate the grossing up of payments. This could be used if an employer had agreed to pay an employee an arranged one off net payment, e.g. £100 bonus. This arrangement can provide a better incentive to work than a variable payment, as the employee knows exactly how much money they are receiving.

As this is a net payment, the employer must bear the cost of any tax, which is done by increasing (grossing up) the amount, so that once the deductions have been made, the employee ends up with the agreed amount.

Gross Up Reqd

Enter one of the following if the employer is responsible for the tax liability on this payment:

Y	The element is non-priority and is processed after all normal elements in element number order. This is the preferred option for the majority of users.
P	The element is priority and is processed before all normal elements, in element order.
1–9	All those with 1 will be done in element order, then all with 2 etc, followed by all normal elements and then all non-priority gross up elements.

Gross Up National Insurance

Enter Y if the employer is also responsible for the National Insurance liability on this payment.

Ers Liability Element

Enter the required pay element code against which the employer’s liability for tax can be recorded. If this field is left blank the net payment and tax are held together under the same pay element.

MD41L6

On Parental Leave	Part-Payable	Pay Element Payment
Y	Y, N or E	Full payment is made.
N or blank	Y	Part-payment is made when the parental leave absence starts or ends within the pay period; no payment is made if the parental leave period spans the whole pay period.
N or blank	N or E	No payment is made if there is any parental leave during the pay period whether it is for all or part of the pay period.
X	Y, N or E	Full payment is made when the parental leave absence starts or ends within the pay period; no payment is made if the parental leave period spans the whole pay period.

Part-Payable	Start/Leave	Pay Element Payment
N or E	N	No payment is made.
Y	Blank, L or N	No payment is made.
N	Blank, L, S or Y	Full payment is made.
E	Blank, L, S or Y	Part-payment is made.
Y	S or Y	Part-payment is made.