Oracle Fusion Payroll - Employment Level Options for Payroll Elements

Employment Level Options for Payroll Elements in Oracle Fusion Payroll

In Oracle Fusion Payroll, every element must be configured with an employment level, which determines where the element entry attaches within the worker’s employment structure and how it behaves during payroll processing.

Oracle supports two main levels:

• Payroll Relationship Level

• Assignment Level

These levels determine:

• Whether the element applies once per employee (across all assignments)

• Or once per assignment (processed separately for each assignment)

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1. Payroll Relationship Level

This is the highest level for element entries. Elements defined at this level apply to the entire payroll relationshipregardless of how many assignments the worker has.

Use Case

Choose this level when the element:

• Must be unique per employee

• Should NOT repeat for each assignment

• Represents statutory, benefit, or employee-wide obligations

Typical Elements at Payroll Relationship Level

These are common examples in both US and global implementations:

• Tax deductions

  • FIT, SIT, SS, Medicare, FUTA

  • W-4-based withholding elements

• Pension/Retirement

  • 401(k), Roth 401(k), employer match, PF (India), Superannuation (AU)

• Involuntary Deductions

  • Child support, garnishments, federal levies

• Medical and Insurance

  • Health care (medical, dental, vision), FSA/HSA contributions

• Union Dues

• Benefits-related calculations

  • Flex credits

  • Employer contributions

  • Benefits ACA imputed income (US)

Behavior

• The element processes once per payroll relationship, even if an employee has multiple assignments.

• Balances accumulate at the Payroll Relationship level, unless overridden by custom balance dimensions.

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2. Assignment Level

This level applies when the element needs to be calculated separately for each assignment an employee holds.

Use Case

Choose this when the element:

• Depends on job, grade, organization, or work location

• Must differentiate across primary vs. secondary assignments

• Is tied to time, earnings, or assignment-specific pay components

Typical Elements at Assignment Level

These are almost always assignment-level:

• Assignment Salary

• Regular Hours / Regular Earnings

• Overtime (OT1, OT2, Holiday OT etc.)

• Shift Differential

• Sales Commission

• Incentives / Bonuses

  • Sales bonus

  • Performance bonus

  • Profit-sharing bonus

• Allowances

  • Housing allowance

  • Travel allowance

  • Car allowance

• Supplemental Earnings (US)

  • Supplemental wages tied to an assignment

Behavior

• Elements will be processed separately for each assignment.

• Balances accumulate per-assignment, per-payroll relationship, or per-payroll depending on the balance dimension used by the element.

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Key Implementation Notes

A. Why choosing the right level matters

Incorrect employment levels lead to:

• Double taxation for employees with multiple assignments

• Incorrect benefits enrollment values

• Unexpected retro results

• Over/under payment of bonuses or allowances

B. Interaction with Element Eligibility

Level works together with:

• Element eligibility (payroll vs. assignment)

• Payroll statutory units (PSU)

• Salary basis

• Time & labor mappings

C. US Payroll Specific Note

US taxes MUST remain at payroll relationship level because tax balances (YTD, QTD) are only maintained at that level in the delivered balance dimensions.

D. Balances

• Relationship-level elements feed relationship-level balances

• Assignment-level elements feed assignment-level balances
  Unless overridden with a custom mapping.