PeopleSoft Enterprise Human Resources 9.1 PeopleBook: Administer Salary Packaging

Setting Up Salary Packaging

This chapter provides an overview of salary packaging setup and discusses how to:

Set up salary packaging Human Resources and Global Payroll tables.
Set up and view salary packaging tax options.
Set up additional salary package components.
Set up package components.
Set up salary package templates.
Set up salary package rules.
Set up salary package defaults.

Understanding Salary Packaging Setup

There are six main steps involved in setting up and managing the Administer Salary Packaging business process for Australia:

To set up Administer Salary Packaging:

Set up your Global Payroll and Human Resources components.

Administer Salary Packaging relies on information defined in Global Payroll and Human Resources to ensure accurate payroll processing and to facilitate expenditure monitoring. When setting up Administer Salary Packaging, identify the different forms of remuneration and define the components you use in your salary packages. Also set up the calendars you use to process your salary-packaged employees. When implementing Administer Salary Packaging with Global Payroll, use the following Human Resources (HR) and Global Payroll (GP) pages:
- Pay Calendar Table - GP or Pay Calendar Table - HR.
  
  Create and schedule payroll cycles for your salary packaged employees in specific pay groups.
- Earnings Element (GP).
  
  Define the earnings elements you use to pay your salary packaged employees through Global Payroll. Used for expense tracking.
- Deductions Element (GP).
  
  Set up the way the system processes deductions, including the priority of the deduction and how the deduction affects taxes. Used for expense tracking.
- Compensation Rate Code Table (HR).
  
  Select the Maintained via Package Only check box in the Australian Salary Packaging group box to define and review your compensation rate codes. Rate codes are attached to salary package components and after an employee is enrolled in a package, rate codes are stored the employee's Job Data - Compensation page.
- Included Earnings/Deductions.
  
  Select the non-packaged earnings and deductions elements that appear on the Package Summary component after you run the expense calculation process.
- Business Expenses (HR).
  
  Enter actuals for salary packaging components defined as an expense payroll type. You must have a unique expense code for each package component to facilitate reconciliation of package expenditure.
Set up your Salary Packaging tables.

These tables enable you to set up components, additional components, package rules, and package templates. Define the components that employees can include in their remuneration packages, as well as the tax liabilities on those components. Also define the rules associated with components and then group components into templates.
Set up your default rules and templates.

The Position Data - Description page and Job Code Table - Job Code Profile page enable you to attach the default package rule and template that you use when modelling your packages to a job code or a position. The defaults on the position override the defaults on the job code. Use the Company Table - Default Settings page to specify a default compensation rate code for Total Package Value (TPV) and Total Employment Costs (TEC) for a specific company to use when modelling applicant/employee packages.
Model and approve your applicant/employee packages.

This process enables you to enter a package and model it to the employee/employers preference. Approval of the employee salary package occurs when you select the confirmed status. Once the package is confirmed, enrol the employee into it.
Enrol/de-enrol employees into salary packages.

After you confirm the employee's selected package and run the package enrolment process, the system enrols the rate codes onto the Compensation page of the employee's job record. This step establishes the employee's entitlements for processing through payroll. Enrolment into an approved salary package triggers the creation of multiple components of pay on the employee's Job Data - Compensation page.
Run the expense calculation process (GP).

This process uses the actual calculated amounts that have been processed by payroll and compares them to the budgeted amounts. The difference is shown as a percentage. You can monitor the employee's actual expenditures against the budgeted salary package. When packages end, you can monitor package expenditure on an ongoing basis during the life of the package (package period) and acquit any balances when you model against the employee's package for the package period.

Setting Up Salary Packaging Human Resources and Global Payroll Tables

To set up salary packaging payroll components, use the Pay Calendar-GP (PKG_CALENDAR_GP), Pay Calendar-HR (PKG_CALENDAR_TBL), the Comp Rate Code Table (COMP_RATECD_TBL), and the Included Earnings/Deductions (PKG_ERN_DED_INCL) components.

This section provides an overview of salary packaging setup and discusses how to:

Define calendars for salary packaged employees.
Set up Administer Salary Packaging compensation rate codes.
Define non-salary packaged earnings and deductions elements.
Define pay frequencies for salary packaging.

See Also

Administer Salary Packaging Integration

Viewing Worker Ranking

Defining Earning and Deduction Elements

PeopleSoft Enterprise Global Payroll 9.1 PeopleBook

Understanding Global Payroll and Human Resources Data Used in Salary Packaging

Administer Salary Packaging relies on information defined in Global Payroll and Human Resources to ensure accurate payroll processing and to facilitate expenditure monitoring. When setting up your Administer Salary Packaging business process, identify the different forms of remuneration and define the Global Payroll and Human Resources components that you'll use in your salary packages.

Understanding Salary Packaged Earnings and Deductions

Set up the earnings and deductions elements that represent the different forms of remuneration in your organization. Although you establish these tables as part of your Global Payroll system, review them for use with Salary Packaging. Attach earnings and deductions elements to your package components using the Package Components - Expense Data page. These elements are used in the expense calculation process.

Note. Assign a unique earnings or deductions element for all package components, which enables you to track expenditure for each individual component. If you don't define and link different elements for each earning or deduction component, the system aggregates your salary packaging expenditures when it calculates them. As a result, you can't identify expenditures against individual components.

See Also

Defining Earning and Deduction Elements

Defining Non-Salary Packaged Earnings and Deductions Elements

Defining Expense Details for Salary Packaged Components

Monitoring Salary Packaging Expenditure

Understanding Salary Packaging Business Expense Codes

When defining your salary package components, you can link them to business expenses to help you track expenditures against the appropriate components. You must have a unique code for each package component (identified as an expense payroll type) to facilitate reconciliation of package expenditure.

Note. Monitoring expenditure for Administer Salary Packaging is possible only if you are using Global Payroll.

See Also

Administer Salary Packaging Integration

Monitoring Salary Packaging Expenditure

Tracking a Worker's Business Expenses

Pages Used to Set Up Salary Packaging Human Resources and Global Payroll Tables

Page Name	Definition Name	Navigation	Usage
Pay Calendar GP	PKG_CALENDAR_TABLE	Compensation, Salary Packaging AUS, Define Salary Packaging, Pay Calendar GP, Pay Calendar GP	Create pay calendars for your salary packaged employees in specific pay groups. Used for package modelling so that it can determine the budget values on the employee's package. Note. Use only if you have both Global Payroll and Human Resources installed.
Pay Calendar-HR - Pay Calendar Table	PKG_CALENDAR	Compensation, Salary Packaging AUS, Define Salary Packaging, Pay Calendar-HR, Pay Calendar Table	Create and schedule pay calendars for your salary packaged employees in specific pay groups. Used for package modelling so that it can determine the budget values on the employee's package. Note. Use if you have Human Resources installed.
Comp Rate Code Table (compensation rate code table)	COMP_RATECD_TBL	Set Up HRMS, Foundation Tables, Compensation Rules, Comp Rate Code Table, Comp Rate Code Table	Define compensation rate codes. See Viewing Worker Ranking.
Included Earnings/Deductions	PKG_ERN_DED_INCL	Compensation, Salary Packaging AUS, Define Salary Packaging, Included Earnings/Deductions, Included Earnings/Deductions	Specify the non-packaged earnings and deductions elements that appear on the Package Summary component after you run the expense calculation process.
Pay Groups AUS	GPAU_PYGRP_EXT	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Pay Groups AUS, Pay Groups AUS, AUS, Pay Groups AUS	Define additional information specific to Australian pay groups, such as the pay frequency for salary packaging. The frequency you select enables the budgeting capabilities in the actual salary package, selecting the frequency lets the system know the type of frequency to divide the component totals See Defining Pay Groups.
Earnings and Deduction	GPAU_PSLP1	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Payslips, Templates AUS, Earnings and Deduction	Create sections of earnings and deductions, select description options, and set the element components that the payslip displays. This information interrelates to salary packaging setup as well.

Defining Calendars for Salary Packaged Employees

Access the Pay Calendar GP page (Compensation, Salary Packaging AUS, Define Salary Packaging, Pay Calendar GP, Pay Calendar GP).

Calendar Generation Parameters

Pay Frequency

Value comes from the Pay Frequency field on the Pay Groups AUS page in Global Payroll— Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Pay Groups AUS. This group box enables you to set up default pay frequencies for the pay groups you use as part of Salary Packaging. The Package Calendar Table page also retrieves the frequency you selected.

Generate Calendar

Click this button to build a pay calendar.

Note. The calendars that you generate on this page are used to determine the periods for budgeting purposes only. You must set up calendars before you can use the Administer Salary Packaging budgeting feature.

Use the Pay Calendar GP page if you have both Global Payroll and Human Resources installed. If you have only Human Resources installed, use the Pay Calendar GP page. Both pages have the same functionality, except Global Payroll uses the pay group key and Human Resources uses the company/pay group key.

Setting Up Administer Salary Packaging Compensation Rate Codes

Access the Comp Rate Code Table page.

When implementing Administer Salary Packaging, define and review the compensation rate codes for your salary packages on this page. When defining your salary package components and additional components, you can link them to compensation rate codes, which after the employee is enrolled in the package are stored on the employee's Job Data - Compensation page (Workforce Administration, Job Information, Job Data).

Maintained Via Package Only

If you are going to use pay components with Administer Salary Packaging, select the Maintained via Package Only check box in the Australian Salary Packaging group box on the Comp Rate Code Table page. This check box, combined with other information on the employee's job record, works to maintain salary package integrity.

Selecting this check box prompts a warning message when a salary packaged employee's compensation rate codes are changed manually. The following warning message appears if you update or change an employee who has these rate codes assigned to them: "Salary Packaging Compensation Rate Code fields should be changed through Salary Packaging menu."

Note. Set up your Administer Salary Packaging rate codes with a rate code type of flat amount and a frequency of A (annual).

Rate codes are attached to salary package components and are enrolled on the employee's Job Data - Compensation page. If the rate code is managed by salary packaging, the rate matrix functionality can not be used.

Defining Non-Salary Packaged Earnings and Deductions Elements

Access the Included Earnings/Deductions page (Compensation, Salary Packaging AUS, Define Salary Packaging, Included Earnings/Deductions, Included Earnings/Deductions).

Element Name

Specify the non-packaged earnings and deductions elements that you want to appear on the Package Summary page after you run the expense calculation process. You can then view the total value of any deductions, earnings, and expenses that are not included as a packaged component but have been paid out to the employee in the payroll.

You can see if expenditure outside the package has occurred for the employee and quickly respond to the non-packaged payments. These types of payments may prompt you to perform a package review or some other corrective action.

See Reviewing Salary Package Expenditures.

Defining Pay Frequencies for Salary Packaging

Access the Pay Groups AUS page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Pay Groups AUS, Pay Groups AUS).

Salary Packaging

The pay frequency is used as the default value for the pay groups that are used as part of the administer salary packaging. The defined value is also retrieved by the package calendar table to divide the component totals that budgeting uses in salary packages.

Setting Up and Viewing Salary Packaging Tax Options

To set up and view salary packaging tax options, use the FBT/GST (PKG_FBT_TBL), FBT Stat Interest (PKG_FBT_INT_TBL), FBT Vehicle Rates (PKG_FBT_VEH_TBL), State Payroll Tax (PKG_PYTX_TBL), and the Tax Scales (PKG_TAX_SCALES_AUS) components.

PeopleSoft delivers and maintains the Fringe Benefits Tax (FBT) and Goods and Services Tax (GST) tables in the system. Because you can create salary package components to represent fringe benefits, such as a car allowance or a housing allowance, review the FBT and GST table information as part of your salary package setup. The system uses these tables when it calculates salary package FBT and GST liabilities for package components. Link the tax liability information to a salary package component using the Additional Comp page.

In this section, we discuss how to:

View Salary Packaging FBT and GST tax details.
View Salary Packaging FBT statutory interest rates.
Review Salary Packaging FBT motor vehicle statutory percentage information.
Set Up Salary Packaging State Payroll tax options.
Maintain PAYG tax scales used in salary package calculations.

Pages Used to Define and View Salary Packaging Tax Options

Page Name	Definition Name	Navigation	Usage
Review FBT/GST Rate Table	PKG_FBT_TBL	Compensation, Salary Packaging AUS, Define Salary Packaging, Review FBT/GST Rate Table, Review FBT/GST Rate Table	View the FBT and GST rates for Australia. The GST percentage and rate for the calculation of Fringe Benefits Tax (FBT) appear.
Review FBT Stat Interest Rate	PKG_FBT_INT_TBL	Compensation, Salary Packaging AUS, Define Salary Packaging, Review FBT Stat Interest Rate, Review FBT Stat Interest Rate	View FBT statutory interest rates. The statutory percentage rate used in the calculation of interest payments for depreciation of motor vehicles and low interest loans appear.
Review FBT Stat Vehicle Rate	PKG_FBT_VEH_TBL	Compensation, Salary Packaging AUS, Define Salary Packaging, Review FBT Stat Vehicle Rate, Review FBT Stat Vehicle Rate	Review FBT motor vehicle statutory percentage information. The kilometer thresholds and the corresponding statutory percentages used in determining the taxable value of a motor vehicle appear.
Sal Pkg Payroll Tax Rates AUS	PKG_PYTX_RT_TBL	Compensation, Salary Packaging AUS, Define Salary Packaging, State Payroll Tax Rates, Sal Pkg Payroll Tax Rates AUS	Specify the payroll tax percent rate for all states where employees in a specific company are located. This page provides maintenance functions for the State Payroll Tax tables. These percentages are used in the notional calculation of tax during package modelling.
PAYG Tax Scales	PKG_TAX_SCALES_AUS	Compensation, Salary Packaging AUS, Define Salary Packaging, PAYG Tax Scales, PAYG Tax Scales	Maintain tax scales used in package calculations. Set up and view the thresholds and the percentage of tax for each threshold. Note. Use only if you have Human Resources and not Global Payroll installed. If Global Payroll is installed, the Global Payroll PAYG Tax Scales are used by Salary Packaging.

Viewing Salary Packaging FBT and GST Tax Details

Access the Review FBT/GST Rate Table page (Compensation, Salary Packaging AUS, Define Salary Packaging, Review FBT/GST Rate Table, Review FBT/GST Rate Table).

FBT and GST Rates

FBT Percent (Fringe Benefits Tax percentage)	The rates are set by the Australian Taxation Office, with any changes generally effective in line with the FBT year of April 1 to March 31.
Min reportable FBT liable ern (minimum reportable Fringe Benefits Tax liable earning)	When producing payment summaries, the system has to determine if an employee has received, in the FBT year, fringe benefits with a total taxable value exceeding 1,000 AUD. A collection process totals the FBT liable earnings and, if they exceed 1,000 AUD, reports the grossed-up taxable value on the payment summary.
GST Rate	The GST on your package components is calculated using this rate.

Reviewing Salary Packaging FBT Motor Vehicle Statutory Percentage Information

Setting Up Salary Packaging Company Payroll Tax Options

Maintaining Tax Scales Used in Salary Package Calculations

Viewing Salary Packaging FBT Statutory Interest Rates

Access the Review FBT Stat Interest Rate page (Compensation, Salary Packaging AUS, Define Salary Packaging, Review FBT Stat Interest Rate, Review FBT Stat Interest Rate).

FBT Statutory Interest Rate

Statutory Percent

Used in the calculation of interest payments for depreciation of motor vehicles and low interest loans.

Setting Up Salary Packaging Company Payroll Tax Options

Maintaining Tax Scales Used in Salary Package Calculations

Viewing Salary Packaging FBT and GST Tax Details

Reviewing Salary Packaging FBT Motor Vehicle Statutory Percentage Information

Access the Review FBT Stat Vehicle Rate page (Compensation, Salary Packaging AUS, Define Salary Packaging, Review FBT Stat Vehicle Rate, Review FBT Stat Vehicle Rate).

FBT Vehicle Rates

GST Gross up Pct

Used in the calculation of GST on vehicles.

Vehicle Statutory Percentage

Mileage Limit (Km) / Statutory Percent (mileage limit [kilometer/statutory percentage)

Determine the taxable value of a motor vehicle.

The statutory percentage rate is used in the calculation of interest payments for depreciation of motor vehicles and in the calculation of FBT for components with a component type of motor vehicle.

Setting Up Salary Packaging Company Payroll Tax Options

Maintaining Tax Scales Used in Salary Package Calculations

Viewing Salary Packaging FBT and GST Tax Details

Setting Up Salary Packaging Company Payroll Tax Options

Access the Sal Pkg Payroll Tax Rates AUS page (Compensation, Salary Packaging AUS, Define Salary Packaging, State Payroll Tax Rates, Sal Pkg Payroll Tax Rates AUS).

State Payroll Tax

State/Tax Percent

If you want the notional payroll tax liability to be calculated during salary package modelling, enter the tax percent for each state in which you pay employees. If you don't enter these details, the system does not calculate liability for payroll tax for employees when you model salary packages. The tax percentage rates you enter are only used in salary packaging calculations.

For most Australian states, the tax rate varies based on the value of your company payroll. To obtain an even more accurate notional tax calculation, specify the percentage rate of tax for each state. To do so, enter a rate based on your knowledge of your company payroll.

For example, if you know the amount of your total wages bill in a given state, and you know that the threshold you are allowed to take effectively reduces your true net payroll tax rate from 7 percent to 6.75 percent, then enter the 6.75 percent here. Then your true net rate is used in package modelling, so your notional calculations in Administer Salary Packaging are more accurate.

Note. Specify company payroll tax liability on the Company Table.

Reviewing Salary Packaging FBT Motor Vehicle Statutory Percentage Information

Maintaining Tax Scales Used in Salary Package Calculations

Viewing Salary Packaging FBT and GST Tax Details

Maintaining Tax Scales Used in Salary Package Calculations

Access the PAYG Tax Scales page (Compensation, Salary Packaging AUS, Define Salary Packaging, PAYG Tax Scales, PAYG Tax Scales).

Threshold Details

Weekly Threshold Amount / A Percent / B Amt (weekly threshold amount and a percentage and B amount)

Set up and view the thresholds and the percentage of tax for each threshold.

These values correspond to the information on the "Statement of Formulae for Calculating Income Tax Installments," issued by the Australian Taxation Office (ATO). In addition to the tax scales on that document, PeopleSoft has introduced tax scales A, B, and L for processing annual leave, long service leave, and leave bonus payments.

The system identifies the top threshold and then works down, checking the weekly amounts and using its logic to calculate the tax installment.

Note. If you need to apply special tax rates, create your own tax scales using the PAYG Tax Scales page. For example, you might choose to establish a Tax Scale E where no tax applies for tax exempt employees or for those employees who you keep on a flat amount or percentage of tax due to instructions that you've received from the ATO.

This page is used if you use Administer Salary Packaging without Global Payroll. If Global Payroll is used, then salary packaging uses the Global Payroll PAYG Tax Scales.

Reviewing Salary Packaging FBT Motor Vehicle Statutory Percentage Information

Setting Up Salary Packaging Company Payroll Tax Options

Viewing Salary Packaging FBT and GST Tax Details

Setting Up Additional Salary Package Components

To set up additional salary package components, use the Additional Components (PKG_ADD_CMP_TBL) component.

This section discusses how to define salary package component liabilities.

Many components that make up your salary package might incur additional liabilities, such as FBT, GST, or payroll tax. The cost of these liabilities can be borne by either the employer or the employee. Define the cost liability and who will carry it—the employee or the employer—as additional components.

Note. Additional component codes must be unique. You cannot associate an additional component with a component of the same name. Consider this carefully when defining codes for both components and additional components. The system warns you when you use a duplicate component code.

Page Used to Define Additional Salary Packaging Components

Page Name	Definition Name	Navigation	Usage
Additional Components - Additional Components	PKG_ADD_CMP_TBL	Compensation, Salary Packaging AUS, Define Salary Packaging, Additional Components, Additional Components	Define the liabilities associated with each of your salary packaging components. Determine the level of package remuneration in which to include these liabilities Total Package Value (TPV) or Total Employment Cost (TEC).

Defining Salary Package Component Liabilities

Access the Additional Components page (Compensation, Salary Packaging AUS, Define Salary Packaging, Additional Components, Additional Components).

Additional Component Definition

Additional Component Type	The type of liability the additional component represents. Your choice determines the tax tables and rates the system references when it calculates the salary package component liability. Select Fringe Benefits Tax, Goods & Services Tax, or Payroll Tax. The value you select here controls the display of the Gross Up Calculation field.
Package Level	Enables you to set how this additional component affects the employee's package. Select: No Effect: Has no effect on the employee's package either in total employee cost or total package value. Typically used where you select Goods & Services Tax in the Addl Component Type field. Total Empl Cost: Usually relates to the cost or oncost that is borne by the employer as a result of employing the employee. If you select this option, you could be indicating that the employer will pay the cost of the liability. Total Pkg Value: Typically used where the cost or oncost is borne by the employee. An example of this would be FBT. The value of this additional component forms part of the employees overall package. Selecting this could indicate that the employee will pay the liability.
Gross up Calculation	This field appears only when you select Goods & Services Tax in the Additional Component Type field. The type of component this additional component relates to determines the calculation method. There are, however, no set rules for components and calculation rules. You must select one of the following options: Type 1 − Tax Credit Claimed Note. If you select this option, the Amount field on the Employee Salary Package - Additional Components page includes the GST gross-up amount in the FBT package value. Type 2 − No Input Tax Credit Note. If you select this option, the Amount field on the Employee Salary Package - Additional Components page does not include the GST gross-up amount in the FBT package value. See Viewing Annual Additional Salary Package Components for Employees. Input tax credits are tax credits that a company can claim back for the GST paid on the supply of a good or service. Where that good or service forms part of an employee's salary package, the calculation of the total value of the package item changes if the company is claiming part of the cost back as an input tax credit.
Comp Rate Code (compensation rate code)	Enables you to utilize the multiple components of pay functionality for your salary packaging. The Enrolment process creates the compensation rates on the employee's Job Data - Compensation page. If you are using Global Payroll, you can link salary package components and additional components to different types of PeopleSoft payroll entities to facilitate the payment of earnings and deductions through your payroll system. Note. Only compensation rate codes with the Salary Packaging check box selected on the Comp Rate Code Table can be assigned to package components and additional components. You must also define the rate code as a flat amount rate code type.

Setting Up Package Components

To set up package components, use the Package Components (PKG_CMPNT_TBL) component.

Package components identify the different forms of remuneration that can be included in salary packages in your organization. When defining components, identify different attributes that determine the value of the component and any associated liabilities (additional components), the information to be enrolled to payroll, and the detail required to track expenditures against this component.

Note. Package components are reusable—you can include them in any number of packages or templates, so you don't need to define components more than once.

This section discuss how to:

Set up base salary package components.
Link additional components to package components.
Define contributing salary package components.
Define expense details for salary packaged components.

Pages Used to Set Up Salary Package Components

Page Name	Definition Name	Navigation	Usage
Package Components - Base Component	PKG_BSE_CMP_TBL	Compensation, Salary Packaging AUS, Define Salary Packaging, Package Components, Base Component	Set up basic information about the salary package component.
Package Components - Additional Comp	PKG_BSE_CMP_ADD	Compensation, Salary Packaging AUS, Define Salary Packaging, Package Components, Additional Comp	Associate additional components with a salary package component.
Package Components - Calculated Comp	PKG_BSE_CMP_CAL	Compensation, Salary Packaging AUS, Define Salary Packaging, Package Components, Calculated Comp	Define contributing components. To assist in the accurate calculation of components dependent on the value of other components, define the calculation starting point and the other components that affect the value on the Expense Data page.
Package Components - Expense Data	PKG_BSE_CMP_EXP	Compensation, Salary Packaging AUS, Define Salary Packaging, Package Components, Expense Data	If you are planning to track expenditure (the package expense calculation) and you have Global Payroll installed, specify package component expenses information for each component. Enter the details and identify the payroll types and related data to track expenditures against package components.

Setting Up Salary Package Base Components

Access the Package Components - Base Component page (Compensation, Salary Packaging AUS, Define Salary Packaging, Package Components, Base Component).

Base Component Definition

Component Type	Determines the data the system needs when you are modelling your packages. The component definition drives more than the Fringe Benefits Tax calculation. It drives the enrolment, expense, and component calculations for all components — regardless of whether they are subject to FBT. Component definition is essential to the accurate calculation and administration of each package component.
Package Level	PeopleSoft can represent the value of remuneration at several different levels—Total Empl (total employment), Cost (TEC), Total Pkg (total package), and Value (TPV). By selecting the level for each component, you identify the level of remuneration of the component value that should be included.
Projection Type	Used during package expense calculation. It's possible to project the expenditure to the end of the package based on the actual expenditure of the component to date. The method of projection can differ for different types of components. Select: Ad Hoc: This does no calculation. The value of projected expenditure at period end reflects the actual expenditure of the component. Regular: Projection is based on the actual expenditure to date. The rate of expenditure is assumed to be the same for the remainder of the effective period of the component. Calculation of the projected period end expenditure looks at the actual expenditure against the period to date and calculates for the remaining effective period expenditure at the same rate. Budget: During modelling you can identify an expenditure budget. This gives you the ability to identify known expenditure expectations for components spent on an irregular basis. The information entered during modelling is used to reflect the projected expenditure at period end. Note. Regardless of which option you select, if the component start date is in the future, the system uses the budgeted component amount when calculating the impact of the component on an employee salary package.
Comp Rate Code (compensation rate code)	Enables you to use the multiple components of pay functionality for your salary packaging. If you are using Global Payroll, link salary package components and additional components to different types of rate codes to facilitate the payment of earnings and deductions through your payroll system.
Add to Gross Pay	Enables you to identify components to include in the notional calculation of PAYG tax liabilities. Select this check box for components that represent cash payments. At the time of modelling, the value of components with this check box selected are aggregated and the PAYG tax liability is calculated on the total (such as salary and allowances).
Enrol Benefits Base / Benefit Base Comp Rate Code (enrolment benefits base/benefit base compensation rate code)	Select this check box and a specific rate code to update the annual benefits base rate at the time of package enrolment. This field is available only when you have selected a component type of Percentage of Benefits Base or Pct of Contributing Components on the Base Component page. Some of your benefits, such as superannuation, might be calculated using the Annual Benefits Base Rate. When this is the case, it is possible to also maintain the value of the annual benefits base rate from within Salary Packaging.

Defining Contributing Salary Package Components

Defining Expense Details for Salary Packaged Components

Linking Additional Components with Package Components

Access the Package Components - Additional Comp page (Compensation, Salary Packaging AUS, Define Salary Packaging, Package Components, Additional Comp).

Additional Components for Component

Additional Components

Many components attract additional liabilities, such as FBT, payroll tax, or GST. PeopleSoft defines these liabilities as additional components.

Select additional components to include in the Package Component Table for this component. You can attach multiple additional components.

Additional components vary from component to component. For example, a car component might attract FBT, payroll tax, and GST. A salary component only payroll tax and some components such as superannuation might be exempt from all tax.

Note. You must first define your additional components on the Additional Component page.

Defining Contributing Salary Package Components

Defining Expense Details for Salary Packaged Components

Defining Contributing Salary Package Components

Access the Package Components - Calculated Comp page (Compensation, Salary Packaging AUS, Define Salary Packaging, Package Components, Calculated Comp).

Component Calculation Definition

Calculation Starting Value

If you select a component type of Pct of Contributing Components and a Package Level of Total Empl Coston the Base Component page, determine the calculation starting value for this component. Select: None or TPV (total package value).

None: If you accept this default value, the system calculates the value of the component as a percentage of the specified contributing components.

Total Pkg Value: If you use this value, the system uses this value as the starting point for the value of this component in the package that you are modelling. Any components that are then specified as contributing components add or subtract from the total package value before the component is calculated.

Note. If you don't enter any contributing components, and the value is Total Pkg Value, the system calculates the value of the component to be a percentage of the total package value. Enter the percentage value during modelling.

If you indicate a component type of Pct of Contributing Components, indicate a value of Total Pkg Value or enter at least one contributing component. If you do not do either (or both) of these, an error message appears and you must modify the component definition before saving.

Contributing Components

Component	Select components you have also set up using the Package Component Table pages. These components are dependent on the value of the component you are setting up.
Effect on Component	Specify whether the contributing component Adds to or Subtracts From the total value of the contributing components (if there is a special effect on the component).

Linking Additional Components with Package Components

Defining Expense Details for Salary Packaged Components

Access the Package Components - Expense Data page (Compensation, Salary Packaging AUS, Define Salary Packaging, Package Components, Expense Data).

GST Calculation

Defines how GST is tracked as an expense. Select:

GST Included: Indicates that the component has GST included in the value of the component. For example, if the expense amount picked up is 100 AUD, this option treats it as 91 AUD base and 9 AUD GST.

GST Excluded:Indicates that the expense calculation will include the GST on top of the component value. For example, if the expense amount picked up is 100 AUD, this option treats it as 100 AUD base and 10 AUD GST.

GST Only:Indicates that the expense calculation should calculate only the GST. For example, if the expense amount picked up is 100 AUD, this option treats it as 0 AUD base and 100 AUD GST.

The GST is calculated using the GST rate from the Review FBT/GST Rate Table page.

Payroll Type, Earnings, Deduction, and Expense Code

The Payroll Type field identifies which payroll (GP) or expense (HR) type to reference to track expenditure against this component for the employee during the package expense calculation. Select Deduction, Earning, or Expenses.

Your selection enables or disables the Earnings, Deductions, and Business Expenses fields.

During the expense calculation process, the actual amounts used are the values recorded against the earnings and deductions through payroll. However, if using the Expense Code field, the values entered on the Business Expenses page in Administer Workforce are used as the actual amounts.

This enables you to track expenditure through both earnings and deductions, or deductions and expense accounts, or even multiple earnings elements. This gives you the flexibility to administer payments in any way you prefer, but still have the expenditure accurately reflected against the employee's package.

It is possible to enter more than one Payroll Type when tracking expenditure, which is necessary for some components where the expenditure is not always made against a consistent payroll entity. For example, the salary component might have multiple entries to reflect the different earnings elements that are used to make payments that should be reflected as salary.

Note. If you are not using Global Payroll, you do not need to complete the Expense Data page.

Linking Additional Components with Package Components

Defining Contributing Salary Package Components

Setting Up Additional Salary Package Components

Viewing Salary Packaging FBT and GST Tax Details

Enrolling in Salary Packages

Monitoring Salary Packaging Expenditure

Setting Up Salary Package Templates

To set up salary package templates, use the Package Template (PKG_TMPLT_TBL) component.

This section discusses how to define salary package templates.

Use package templates to define groups of components to use as defaults for employees that qualify for similar salary packages. For example, you can define one salary package template for executives, another for sales managers, and another for administrative assistants.

Note. Associate salary package templates with jobs on the Job Code Table - Job Code Profile page —Set Up HRMS, Foundation Tables, Job Attributes, Job Code Table— and positions on the Position Data - Description page —Set Up HRMS, Product Related, Organizational Development, Position Data— so that the employee in the job or position is automatically associated with the right salary package option.

Page Used to Set Up Salary Package Templates

Page Name	Definition Name	Navigation	Usage
Package Template	PKG_TMP_TBL	Compensation, Salary Packaging AUS, Define Salary Packaging, Package Template, Package Template	Define salary package templates. Define a standard collection of components that are automatically defaulted into package model records for employees or applicants.

Defining Salary Package Templates

Access the Package Template page (Compensation, Salary Packaging AUS, Define Salary Packaging, Package Template, Package Template).

Package Components

Package Component

Enter the package components for this template that are automatically assigned to your employees as defaults when modelling their packages on the Employee Salary Package - Base Components page.

The number and type of components you enter depend on your organization's salary package business requirements. Define components using the Package Components component.

Note. While we recommend that you make your templates as complete as possible, you can modify any template to fit the exact requirements for that employee after the template is included in an employee's salary package model.

Classifying Jobs

Creating Positions

Modelling Salary Packages

Setting Up Salary Package Rules

To set up salary package rules, use the Package Rules (PKG_RULE_TBL) component.

This section discusses how to create salary package rules.

Define rules to ensure that salary packages meet legislative requirements for remuneration, to meet company policy, or to maintain data integrity and standards. Define as many rules, or sets of rules, as you need to use when modelling packages.

PeopleSoft applies package rules to validate the package models when you save them. If the components of a package model do not comply with all the rules, the system issues an error message and prevents you from saving the package until you have modified the components so that they comply.

Associate package rules with package templates, use package rules only, use templates only, or use neither templates nor rules when you model salary packages. Also associate default rules with job codes or positions.

Page Used to Set Up Salary Package Rules

Page Name	Definition Name	Navigation	Usage
Package Rules	PKG_RULE_TBL	Compensation, Salary Packaging AUS, Define Salary Packaging, Package Rules, Package Rules	Create salary package rules. PeopleSoft applies package rules to validate the package models when you save them.

Creating Salary Package Rules

Access the Package Rules page (Compensation, Salary Packaging AUS, Define Salary Packaging, Package Rules, Package Rules).

Component Rules

Package Component	Select the package component to which you want to apply some type of rule.
Operator	The mathematical values used in the application of this rule.
Comparison Value	Enter a figure that is defined as an amount (Amt) or a percent (Pct). This figure is used in the application of the rule.
Amt or Pct (amount or percent)	Select whether the figure in the Comparison Value field is either an amount or a percent.
Comparing Component	Indicates what the component is compared to when validating that the rule has been satisfied. This field prompts for the final part of the rule. If selecting Pct, select what it is a percent of: Total Package Value, Component Value, or Total Employment Cost. If selecting an amount, select Component Value. Note. When defining rules with a comparing component of Component Value, ensure that the amount or percent option is consistent with the component type. For a component type of Pct of Contributing Components, the Amt or Pct value must be Pct. If the component type is Flat Amount, the value must be Amt.
Required	Select to indicate whether individual components must be included in the salary package. If a component is identified in the package rule as Required, the system checks that the component exists at the package begin and end dates. If the components of a package model do not comply with all the rules, the system issues an error message and prevents you from saving the package until you have modified the components so that they comply. Note. It is possible for a component that is required to exist at the begin and end dates of the package, but to not be effective for the entire package period. Take care when modelling mandatory components to ensure that they are effective for the entire package period.

Modelling Salary Packages

Setting Up Salary Packaging Defaults

Within PeopleSoft, there are specific pages you use to define defaults in the employee salary packaging modelling. Specify various salary packaging default values using the following pages in PeopleSoft Enterprise HRMS:

Company Table - Default Settings—Set Up HRMS, Foundation Tables, Organization, Company.
Job Code Table - Job Code Profile—Set Up HRMS, Foundation Tables, Job Attributes, Job Code Table.
Position Data - Description—Set Up HRMS, Product Related, Organizational Development, Position Management, Maintain Positions/Budgets, Add/Update Position Info.

These default values assist you in setting up consistent employee salary packages when you model packages as part of your salary packaging business process. They streamline your modelling time per employee and ensure consistent application of salary packages for employees in the same jobs or positions in your organization.

In this section, we discuss how to:

Set up your organization's TPV and TEC compensation rate codes.
Set up default package templates and rules for jobs and positions.
Set up default salary packaging pay frequencies.

Setting Up Your Organization's TPV and TEC Compensation Rate Codes

To establish default TPV and TEC compensation rate codes for a specific company to use when modelling employee packages, use the Company Table - Default Settings page—Set Up HRMS, Foundation Tables, Organization, Company. Select a salary packaging compensation rate code from among the valid codes set up on the Comp Rate Code Table. These companies are then enrolled into compensation containing TPV and TEC amounts.

You can also specify whether the company is liable for Payroll Tax.

Note. You must enter a TPV. This compensation rate code is referenced in the rules used when processing terminations for packaged employees (unused leave is paid out at the packaged rate).

Setting Up Default Package Templates and Rules for Jobs and Positions

To set up default package templates and rules for jobs and positions, use the Job Code Profile (JOB_CODE_TABL) component.

Salary packaging is completed on an individual basis. Each employee may require different components and the overall value of the package may be unique to that employee. Therefore, a package is always modelled for a single employee.

However, if you structure your organization using positions or base your remuneration structures on jobs, set up defaults for package templates and rules that administer salary packages by default standards or minimum levels of remuneration to employees based on their positions and jobs.

To specify a default package template and package rule ID for a job code, access the Job Code Table - Job Code Profile page ( Set Up HRMS, Foundation Tables, Job Attributes, Job Code Table) and select the job code to which you are assigning salary packaging defaults. Access the Australian group box and select values for the Package Template ID and the Package Rule ID.

To update position data to use the salary packaging defaults, access the Australian group box on the Position Data - Description page: Set Up HRMS, Product Related, Organizational Development, Position Data, Description.

See Also

Classifying Jobs

Setting Up Positions

Setting Up Default Salary Packaging Pay Frequencies

When you are defining calendars for salary packaged employees, the pay frequency comes from the value you enter in the Pay Frequency field in the Salary Packaging group box on the Pay Groups AUS page in Global Payroll (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Pay Groups AUS).

This group box enables you set up default pay frequencies for the pay groups you use as part of Administer Salary Packaging. The frequency you select is also retrieved by the Package Calendar Table page, which enables the budgeting capabilities in the actual salary package because the system needs to know over what type of frequency to divide the component totals.