Overview
A cost item is any element that can be used to predict and calculate future developments of organizational departments such as basic salary, vacation pay and full-time salaries at the assignment level. There are four information tabs at the bottom that further expand the capabilities of a cost item. The deductions tab lists the deduction and cost item relationship for a deduction calculation. A deduction can be viewed, added or deleted in this tab. The dependant tab represents cost items calculated on other cost items. For example, another expense can appear from producing an employee's salary. Each cost item, by law, may be associated with an income tax which will be recorded in the Income Tax tab within the Cost Item function. The last tab is Effective Date which manages all the different dates that document when the cost item will become effective. This screen performs many functions that are key to the payroll management.
Navigation
Payroll Management ► Support Entities ► Cost Item Management ► Cost Item
Cost Item screen Fields and Tabs
Field | Description |
Code | ID for the Cost Item. It is a user given field. |
Is Basic Salary | If checked, Cost Item is a Basic Salary earning. |
| Is Allowance | This Boolean is used when the keyword 'sumallowance' is used in the Reduction Deduction entity. |
| Is Retroactive | This Boolean is used when the keyword 'sumallowance' is used in the Reduction Deduction entity. |
Is ProRated | If checked, Cost Item will be ProRated. A ProRated Cost Item will be used mainly for a salary increase in the middle of a pay period or if an employee resigns in the middle of the month. |
Is Limiting Regular | This is the reduction amount of a cost item in association with a specified effective date. |
Allow in Module | When set to "Time and Attendance", this cost item will be available in Time and Attendance, while if set to "Leave", the cost item will be used by the Leave Module. Default is "Not Applicable". |
Is Task Mandatory | If selected, the Task will be mandatory when entering Time and Attendance. |
Is Overtime | If checked, Overtime can be entered in Time and Attendance. |
Is Leave | False by default. If true, Leave can be added under Time and Attendance. |
Is Cumulating Hours | If checked, a Cost Item will Accumulate Hours which will be recorded with the Cumulated Hours menu. This will then be used for Records of Employment. |
Is Conversion Needed | If checked, Conversion will be used when worked hours and paid hours in Time Schedule are different. Refer to Payroll Calculation for details. |
Are Hours Insurable | If checked, hours are counted on record of employment. |
Allows Frequency Change | If selected, the Frequency can be modified in Time and Attendance. |
Is Non Salary Scale | When Frequency is DAILY or HOURLY, Non Salary Scale can not be selected. When Frequency is NOT DAILY or HOURLY, Non Salary Scale can be selected. If selected, extra fields in Cost Items will be mandatory to complete in order to specify which scale to use. |
| Has Effect On Pay | Indicates if the cost item affects the pay. |
Is Printed On Pay Stub | By default - will be selected as Cost Items that have an effect on the pay should be printed on the pay slip. If not selected, Cost Item will not be printed on pay slip - when the cost item is for cumulative benefits for example. |
Is Statutory Holiday | Will be checked if Cost Item is a Statutory Holiday and will be used as a pay calculation. When selected, Is Limiting Regular will be selected and cannot be unselected. Frequency will display DAILY when Is Statutory Holiday is selected. |
Calculate Length Of Service | If selected, the Cost Item will be used to calculate length of service. |
| Is Compensation Based On Employees File | Default is False. If it is true then compension is based on Employee’s File. |
| Is Retroactive Pay Period Mandatory In CIPP | Default is False. If it is true then Retroactive pay period mandatory in Cost Item per Period. |
| Allow only once by Employee despite Multiple Assignments | Default Value is FALSE. |
Inactive Date | By default, is null. Once a date is entered the Cost Item will no longer be available on and after that date. |
Frequency | Use of Cost Item - Daily, Hourly etc. |
| Frequency based on | Frequency based- Calander days, Working day etc. |
Accumulated Benefit | Accumulated benefit can be measured as daily, hourly, or monetary. It is identified by a 10 digits. |
Type | Select from the Drop Down Menu the Type of Cost Item that users are creating. |
| Cost Item type for reports | Default Null. BONUS, SENIORITY, SOLIDARY BONUS, ZONING, TEACHING. |
Sequence | This will decide the order these Cost Items will be calculated. |
Maximum value by calculation | It allows setting the maximum value for the cost calculation. |
| Income Code | Official Code that will be used to print on tax forms in Canada. |
Should pay excess value | If checked then allows paying the excess value for the cost item. |
| Is Allow More Than Once Same Cost Item | Default Value is FALSE. If this value is true, system will allow same Cost Item code in Automatic Cost Item within same Employee Assignment |
| Legacy Reference | Defines the Legacy Reference associated with the Cost Item. |
Debit Coding Block | It's not mandatory to assign the whole coding block to a Cost Item - part of the segments can be used. Refer to Coding Block for more information. |
| Credit Coding Block | Defines the Legacy Reference associated with the Cost Item. |
| Cost Item Payment Frequency | Cost Item Payment Frequency. Daily, Monthly, Yearly etc. |
Tax Cap Summary | Allows adding Tax cap Summary. |
| Retroactive Payment Cost Item | When TRUE, in CIPP the field Retroactive pay period is mandatory. |
Name | Cost Item Name. |
Description | Cost Item Description. |
Pay Stub Text | This will appear at the bottom of the pay stub. |
Deduction Tab | A deduction can be associated to deduct from the earning this cost item incurs. |
Dependant Tab | Any cost item that is required to be present in order for this cost item to be calculated. This will specify the relationship between the two. |
Income Tax Tab | Information to the Income Tax will be selected here if necessary. |
Effective Rates Tab | The calculation specifics will be identified under this tab. The Cost Item can be based on percentage rates, or specific amounts. |
| Compensation Definition Tab | A collection of zero to many Compensation Definitions |
| Individual Strategy Aggregated Cost Items Tab | This collection will be used during payroll tax calculation. |
Institution | Allows selecting Institution for the Cost Item. |
Overview
This Entity defines the amount for a Compensation Definition.
Compensation Definition Tab Screen Fields
| Fields | Description |
| Compensation | Defines the compensation to be used |
| Amount | Defines the amount of compensation |
| Calculation Strategy | This attribute could take one of the following values: 'Amount', 'Percentage'. |
Overview
A Deduction can be associated to deduct the cost from the cost item.
Deduction Tab screen Fields
| Field | Description |
| Active | If checked, the deduction will be active (applicable during calculation). |
| Cost Item Deduction | The predefined deduction to be used. |
| Cost Item Rate | The percentage amount of the cost item that the deduction will apply to. Range from 0 – 100. |
Overview
Any cost item that is required to be present in order for this cost item to be calculated. This will specify the relationship between the two.
Dependant Tab screen Fields
Field | Description |
Active | If checked, the dependant is active (applicable during calculation). |
Considered Cost Item | The Cost Item that will be used as the dependant. |
Rate | The percentage amount of the cost item that the deduction will apply to. Range from 0 – 100. |
Find Last Amount Paid | False by default When TRUE, during payroll calculation, the system needs to go and find the last amount paid to this employee. |
| Find Last Amount Paid Range Dates | Default = FALSE, When TRUE, the system must find only other cost items per period with status Finalized and Start Date and End Date are between the current pay period Start and end Date. |
Dependant Formula | This will allow to define a formula. We need to be able to multiply,divide,add,substract from the value of this cost item. |
Value Based on Avg of Last Pay Periods | Refers the average value which was applied for last pay periods. |
Is Average Based on Actual Working Days | If checked then it allows the average to be applied based on actual working days. |
Overview
The calculation specifics will be identified under this tab. The Cost Item can be based on percentage rates, or specific amounts.
Effective Rate Tab screen Fields
Field | Description |
Cost Item Effective Dates | The date at which the cost item becomes effective. |
Amount for Frequency | The amount of the cost item. |
Rate | The percentage of the amount to be calculated for the cost item. |
Overview
The Income Tax Tab contains the information of any taxes that apply to the cost item.
Income Tax Tab screen Fields
Field | Description |
Income Tax Destination | The Income Tax Destination that applies to the Income Tax for this cost item. |
Income Tax Type | The Income Tax Type that applies to the Income Tax for this cost item. |
Rate | The percentage amount of the cost item that the deduction will apply to. Range from 0 – 100. |
Is One Time Benefit | If checked, the tax will be linked to the benefits function. |
| Minimum taxable amount | The amount specified here will determine if the cost item gets taxed or not. |
| Exemption amount | This is where you specify the amount to be removed from the cost item amount. |
Overview
This screen enables the ability to include a detailed description towards any Cost Items that are added or modified in a certain pay period. A name and detailed explanation can be included towards the association of a cost item to a specific period chosen. A Cost Item can also be functional or non-functional during its specified period by the checking or un-checking the Active checkbox.
Cost items per Period Reasons can be associated with a given cost item. This information can be predefined in order to ensure there is a valid reason to distribute the cost item selected. This screen provides detailed descriptions of acceptable reasons that can be allocated to cost items given on a per period basis.
Navigation
Payroll Management ► Support Entities ► Cost Item Management ► Cost Item Per Period Reason
Cost Item Per Period Reason screen Fields
Field | Description |
Code | ID for the Cost Item Per Period Reason. It is a system generated code. |
Active | If checked, the Cost Item Per Period Reason is available. |
Name | Description of the Cost Item Per Period Reason. |
Description | Detailed description of the Cost Item Per Period Reason. |
Overview
This screen provides a list of tasks that could be assigned to an employee. A task function describes what will be the relationship between the cost item and the assignment. This is usually represented by what position or role an employee will be given.
Navigation
Payroll Management ► Support Entities ► Cost Item Management ► Task
Task screen Fields
Field | Description |
ID | ID for the Task. It is a system generated code. |
Active | If checked, the Task is available. |
Amount | Amount that will override the salary scale. If nothing is entered here, then the default employee’s salary scale will be taken into account. |
Frequency | Task is done either Hourly or Daily. |
Coding Block | Financial Coding Block Credit and Debit from entity Cost Items. |
Name | Description of the Task. |
Description | Detailed description of the Task. |
Overview
A tax cap places an upper bound on the amount of government tax a person might be required to pay. In this case the tax is said to be capped.
Navigation
Payroll Management ► Support Entities ► Cost Item Management ► Tax Cap Summary
Tax Cap Summary screen Fields
Field | Description |
Code | ID for the Tax Cap Summary. It is a system generated code. |
Description | Detailed description of the Tax cap Summary. |
Tax Cap Effective Date Tab | This tab shows the applicable date of the Tax Cap. |
Overview
This Tab shows the application date of the tax cap.
Tax Cap Effective Date screen Fields and Tab
| Field | Description |
| Effective Date | This effective date indicates when the tax cap ranges will take effect. |
Overview
This tab shows the amount limit of the tax cap.
Tax Cap Ranges screen Fields
Field | Description |
Minimum Amount | The minimum amount of the Tax Cap to be defined for the amount range. |
Maximum Amount | The maximum amount of the Tax Cap to be defined for the amount range. |
Fixed Amount | The fixed amount of the Tax Cap to be defined for the amount range. |
Overview
This Entity describes all the Compensations based on the Employee's File that will be used by the Cost Item in order to provide a Compensation Definition.
Navigation
Payroll Management ► Support Entities ► Cost Item Management ► Compensation
Compensation Screen Fields
| Fields | Description |
| Code | Code manually entered by the user, if parameter autogenerated id is FALSE. |
| Name | Defines the Name of the Publication |
| Compensation Type | This attribute could take one of the following values: 'Employee Education' 'Relatives Details' 'Trainings' 'Teaching' 'Acknowledgements' 'Publications' 'Ranks and Denominations' The default value is 'Employee Education' |
| Active | TRUE by Default, when FALSE it is no longer active |
Overview
Pay frequency means the amount of time between employee pay days. Common pay frequencies include: monthly, semi-monthly (twice each month), bi-weekly (every other week), weekly, and daily. This entity is used to indicate how often a Cost item payment is made.
Navigation
Payroll Management ► Support Entities ► Cost Item Management ► Cost Item Payment Frequency
Cost Item Payment Frequency Screen Fields
| Fields | Description |
| Code | ID for the Cost Item Payment Frequency. It is a system generated code or Manual. |
| Payment Frequency | Close domain field. Values are daily, monthly, quarterly, Anualy etc. |
| Are Paid on same periods for all | If it True cost item paid on same periods for all. If it is true then Is Based on Hire Date must be false. |
| Is Based on Hire Date | If it true the cost item paid on the employee Hire date. |
| Cost Item Payment Frequency Periods Tab | This tab defines the pay code and the pay period. When Are Paid on same periods for all check box is true then this tab is visible. |
Cost Item Payment Frequency Periods screen Fields
| Fields | Description |
| Pay Code | Pay Code of the Employee payroll. |
| Pay Period | The Pay Period on this screen defines the exact dates and ranges of each pay. |
Overview
| Fields | Description |
| Code | Manually entered by the user |
| Description | Short Description of tax exemption codes |
| Is this for Non-Residents only | Default= False |
| Active | Default = TRUE |