Payroll elections set earnings and deductions for employees' pay. You can view an employee's payroll elections in the People feature by selecting the employee and then clicking Payroll > Payroll Elections in the sidebar.
Using payroll elections, you can specify the following:
- Generated earnings an employee receives.
- Deductions that are applied to an employee's pay.
- Employee-specific amounts, or limits, for generated earnings or deductions.
- Balance of outstanding loans.
- Transactions associated with outstanding loans or balances that are in arrears.
The following are some examples of typical employee payroll elections:
- Amount a US employee earns as a 401(k) match.
- Amount a Canadian employee earns as an RRSP match.
- Health insurance premiums that an employee pays.
- Percentage of regular earnings that an employee receives as a bonus, or setting a specific limit for an employee's bonus.
- Repayment schedule for an employee who took out a $1,000 computer loan that they will repay through $100 deductions in every pay period.
Earnings and deductions used in payroll elections are set up as earning and deduction definitions in Payroll Setup > Earnings and Deductions.
See Payroll Setup for Payroll Administrators.
Generated earnings are a type of earning that you assign to an employee's payroll elections so that the application calculates an amount on a scheduled basis (for example, each pay). Generated earnings aren’t the same as time-based earnings, which are calculated based on hours worked. To configure an earning to be generated, select the Generated checkbox for the earning in the General sub-tab of the Earnings tab in Payroll Setup > Earnings and Deductions.
To view or configure payroll elections for an employee, go to People, open the employee profile, and click Payroll > Payroll Elections. Dayforce opens a screen that displays the Payroll Elections and Arrears and Balances sections: