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Oracle Human Resources Management Systems Compensation and Benefits Management Guide (UK)
Release 12.1
Part Number E13533-09
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Payroll Earnings and Deductions

Payroll Earnings and Deductions Overview

Many earnings and deductions - such as salary, pension deductions, and taxes - are discussed under specific functional headings, such as Salary and Grade Related Pay, or Savings and Retirement, or Payroll Statutory Deductions. In this area, we look at payroll earnings and deductions, such as wage attachments, that have not already been covered under other functional headings.

We also focus on additional setup required by Oracle Payroll for processing earnings and deductions. This setup includes the creation of formulas and balances. In some localizations, and for certain types of earnings and deductions, you can select template elements in the Configuration Workbench, or you can use the Element Design Wizard or template windows to generate all the components required for payroll processing, including elements, formulas, balances, and formula result rules.

Certain types of earnings and deductions require additional setup to enable special processing such as net-to-gross and proration, where this is enabled for your localization. Such setup is also discussed in this section.

Note: Mexico only: Oracle HRMS for Mexico does not support net-to-gross processing.

Key Concepts

To get the most out of the earnings and deductions functionality of Oracle HRMS, you need to understand the following key concepts:

Payroll Earnings and Deductions

Oracle HRMS provides an integrated solution for Human Resources and Payroll. Therefore your setup of compensation and benefits supports both compensation management and payroll management.

Can Oracle Payroll handle complex calculations?

Yes it can, through its use of formulas to specify calculations for each earnings or deduction. These formulas use values from the HRMS database and can include conditional logic to perform different calculations for different groups of employees. For example, they can check balances or employee status to control how to process the earning or deduction. Many of the formulas you need, for example for tax calculations, are supplied with Oracle Payroll.

How do you control when each earning or deduction is processed?

The sequence of processing in a payroll run is determined by classifications, such as Pre-tax Deductions and Tax Deductions. You can also prioritize the processing for an individual employee, for example to determine the order in which deductions are processed for wage attachments.

You control whether any value is processed just once, in every payroll run, or periodically (such as once a quarter). Your formulas can also change or stop the processing of an earning or deduction during a run, based on employee status.

How do you accumulate and review balances?

The system can accumulate balances of payroll run results or values entered before the run. You can accumulate a balance over different time dimensions such as current run, month, and year to date. You can review balances after payroll processing and use balances to control the processing performed in the payroll run.

Can I set up new balances, for the values that are important to my company?

Yes, you can define whatever additional balances your enterprise requires. For example, you may require a Pensionable Earnings balance for a defined benefit pension plan your enterprise offers employees.

How do you enter compensation values for the payroll run?

Some values, such as salary, can be entered once and used in every payroll run (or periodic runs) until you need to update them. Other values, such as hours worked, need to be entered or calculated fresh for each run.

You can do one of the following:

You can define validation rules to minimize data entry errors.

Wage Attachments

What wage attachments can I process using Oracle Payroll?

The wage attachments that you can process depend on the specific payments that apply to your legislation. Examples of payments include child support payments, educational loans, taxes to local authorities, alimony, and bankruptcy orders.

See: Third Party Payments Overview

US Only:

When the court issues a release notice for a wage attachment, or if you receive a Form 668-D for a federal tax levy, you must end the employee's wage attachment. Oracle Payroll also stops processing wage attachments when the total owed is reached.

Oracle Payroll supports electronic funds transfer (EFT) of state child support garnishments for the state of Illinois. However, all states accept the Oracle EFT format, but normally require different data dependent upon individual state requirements. You can use the Illinois EFT format to send support payments electronically to all states. You need to include only the information required by the state in the file. You create a separate file for each state containing different routing and account numbers, so you need to set up a separate third party payment method for each state.

Can I recoup my enterprise's costs automatically?

Yes, if you operate in the US, you can use the Wage Attachment Fee Administration process to recoup costs. This process recoups costs in administering alimony, bankruptcy orders, employee requested attachments, and tax levies.

Can I determine the earnings types and amounts that are liable for wage attachment deductions?

Using Wage Attachment Earnings Rules you can determine which earnings types are considered disposable income and liable for wage attachment deductions.

Can I prioritize payment of wage attachments?

You can determine the overall priority of a wage attachment compared to other deductions, and you can also determine sub priorities. For example, if an employee has multiple court orders against them, you can ensure that Oracle Payroll deducts the most important order first.

The standard processing priority order for processing the various categories of attachment is the following:

Once deducted from an employee's wage, how is the wage attachment made?

If enabled for your localization, you can use Oracle Payroll's Cheque Writer features to produce cheques for either organizations or individuals. Localizations that do not have Oracle Payroll's Cheque Writer features available can make payments by credit transfer.

Can I use another system to manage the wage attachments?

You can use an external system to manage your wage attachments. If you want to make entries from that system into Oracle Payroll for payroll processing, you can use predefined deductions that come with Oracle Payroll.

Can Oracle properly calculate overtime according to FLSA guidelines?

Oracle Payroll fully supports the federal overtime calculation rule. The new functionality performs calculations for periods that are longer than a single workweek. You can configure the product to handle either Federal FLSA or State FLSA. You can also configure alternative overtime calculations as specified by selected states or by union contract.

Oracle Payroll uses the term Augments to refer to amounts paid which are in addition to the employee's regular rate of pay and which are considered to be non-discretionary, such as a commission or bonus. The new functionality prorates the augment across all periods during which it was earned.

Additional Element Setup for Payroll

Formulas and Payroll Run Results

Elements are processed during payroll runs according to the business rules for each element that you define at setup. Many of these rules are defined in formulas, written using Oracle FastFormula. Formulas specify how the payroll run should perform calculations for the element.

This is a basic formula for the calculation for the element Wages:

Wages = Hours Worked in Week * Wage Rate

The processed results for each element are called the run results. They become balance feeds for different balances. Some balance feeds are predefined to feed required statutory balances, and you can create your own balance feeds to your own user defined balances.

Formula Inputs from Input Values or Database Items

Formulas obtain some of the data they need from entries to their element's input values. The Wages formula above, for example, could locate each employee's hours worked as an entry to the input value Hours of the Wages element.

Formulas can also obtain information from database items. Much of the information in the Oracle HRMS database, including extensive information on employees and their assignments, is available to formulas as database items. For example, the Wages formula can locate each employee's wage rate as a database item.

Varying the Processing by Employee Group or Statuses

There are several ways to vary the processing performed by formulas:

Types of Formula Results

Formulas can produce different types of run results:

You set up formula result rules to determine the type of each result, and the names and input values of any other elements the result may affect.

Formulas Included in Oracle Payroll Startup Data

Oracle Payroll comes with formulas specific to your legislation. Generally, you receive all the calculations required for employee tax withholding and employer taxes. When there are changes to taxes, you receive updates. You may also receive formulas for other earnings and deductions, depending on your legislation.

Pay Values

When you have occasion to look at the structure of an element online, you may see an input value named Pay Value at the top of its input value listing.

The Pay Value is different from other input values. Its purpose is to store an element's run result. For example, suppose the formula for the Wages element is:

Wages = Hours Worked * Wage Rate

If an employee whose wage rate is $10/hour works 40 hours in a week, the payroll run produces a run result of $400 for this assignment's Wages element. It stores this result in the element's Pay Value.

If you give an entry to a Pay Value before a run, this entry becomes the element's run result. For example, suppose you enter 40 in the Time Worked input value of the Wages element for an employee who earns $10/hour, but also enter $100 in the element's Pay Value. The run ignores the entry of hours worked and the Wages formula, and simply produces a run result of $100 for this employee.

You must define a Pay Value as one of the inputs for the element if you want Oracle Payroll to process an element for pay. You can have only one Pay Value for each element and it must have the name 'Pay Value'.

Predefined Elements

The following table lists the predefined elements that are specific to Oracle HRMS for the United Kingdom.

Element Name Description
PAYE Tax deduction element
PAYE Refunds PAYE Refunds
PAYE Details Holds Tax information and Fires PAYE calculation
GAYE Give As You Earn
GAYE Taxed GAYE Taxed
Fee Fee
NI National Insurance Details
NI A NI A
NI B NI B
NI C NI C
NI D NI D
NI E NI E
NI F NI F
NI G NI G
NI J Deferment NI J Deferment
NI L Deferment NI L Deferment
NI S Deferment NI S Deferment
NI Y Employer's NI Car contribution
NI Y Last Year NI Y for last year
NI Arrears NI Arrears
NI Employer NI Employer
NI Employer Arrears NI Employer Arrears
NI Employee Arrears NI Employee Arrears
NI Person Firing element for multiple assignments National Insurance
NI COMP Firing element for COMP category NI initiated from the NI formula
NI Setup Test NI Setup Test
NI COSR Firing element for COSR Category NI initiated from the NI formula
NI Employers Rebate NI Employers Rebate
NI D Employees Rebate Negative Employer Charge for Employees' Earnings between LEL and EET
NI F Employees Rebate Negative Employer Charge for Earnings between LEL and EET
NI D Rebate to Employee Element to pay the EES rebate due to D EET earnings
NI F Rebate to Employee Element to pay the EES rebate due to F EET earnings
NI Car Primary Employer's NIC for primary company cars
NI Car Secondary Employer's NI Class 1A for employee's second car
NI Car Payment Receives the result of the NICAR formula that is the annual amount the employee contributes for the company car
NI Car Payment Secondary Receives the payments for private use of a secondary car
NI Director Firing element for Director's NI initiated from the NI formula
Court Order English court orders of type CTO, AEO, CCAEO, DEO
Court Order Arrears Records the arrears balance for a court order
Court Order Non Priority Non priority AEO
Court Order NTPP Non third party payment for English court orders of type CTO, AEO, CCAEO, DEO
Court Order Non Priority NTPP Non third party payment for non priority AEO
EAS Scotland EAS Court Order
EAS Scotland Payments Indirect element for holding payments of EAS orders
EAS Scotland NTPP Non third party payment for EAS Scotland
CMA Scotland CMA Court Order
CMA Scotland NTPP Non third party payment for CMA Court Order
CAO Scotland CAO Court Order
CAO Scotland Payments Indirect element for holding payments of EAS orders
CAO Scotland NTPP Non third party payment for CAO Court Order
Setup Court Order Balance Element for initializing seeded court order balances
Setup Tax Balance Element for initializing seeded balances
Setup NI Car Balance Element for initializing seeded NI car and other balances
Setup NI Balance 1 Element for initializing seeded NI Balances
Setup NI Balance 2 Element for initializing seeded NI Balances
Setup NI Balance 3 Element for initializing seeded NI Balances
Setup NI Balance 4 Element for initializing seeded NI Balances
Setup NI Balance 5 Element for initializing seeded NI Balances
Setup NI Balance 6 Element for initializing seeded NI Balances
Setup NI Balance 7 Element for initializing EET and EES Rebate Balances
Setup NI Balance 8 Add input values for NI Able AUEL
Setup NI Balance 9 Add input values for NI AUEL (contributions)
Setup NI Balance 10 Add input values for NI Category J
Setup NI Balance 11 Add input values for NI Category L
Setup NI Balance 12 Add input values for NI Category S
Setup COMP Minimun Payment Add input values for COMP minimum payment
BACS Entry Date Payment date for assignments paid on BACS multiday
BACS Process Date Processing date for assignments under BACS multiday
SSP Corrections Oracle SSP Corrections to processed Statutory Sick Pay payments
Statutory Sick Pay Oracle SSP Statutory Sick Pay payments
SMP Corrections Oracle SSP Corrections to processed Statutory Maternity Pay payments
Statutory Maternity Pay Oracle SSP Statutory Maternity Pay payments
NIC able Benefits NIC able Benefits liable for Class 1A contributions
NIC Holiday Reclaim of employer's charge for qualifying employees
Advance Clearup Post tax advancement clearup
Advance Indicator Element to identify advanced pay period
Advance Period Element used to identify assignments to be advanced pay
Deferred Payments Defer payments element during advanced period
Advance Recovery Post tax advancement recovery
Advance Payment Post tax advance payment
Average Earnings Period Number of payments made within period, if not equal to one
COMP Minimun Payment Element to hold employee and employer minimum payments for COMP pensions
Student Loan Student Loan Repayment
Student Loan Adjust Student Loan Adjust
Student Loan Protected Pay Student Loan Protected Pay
Student Loan Arrears Student Loan Arrears
Setup Student Loan Balance Element for initializing seeded Student Loan balances
Setup Tax Credit Balance Element for initializing seeded tax credit
Tax Credit Working Family or Disabled Persons Tax Credit
ITIP Details Element used to hold tax details and fire ITIP calculation
ITIP Element used for holding ITIP results
Class 1A Non Car Class IA NI Non Car Contributions
Setup Car Mileage Odd Balance Element for initializing seeded car and mileage odd balances
Setup Car Mileage Even Balance Element for initializing seeded car and mileage even balances
Setup Car Mileage Addl Balance Element for initializing seeded additional car and mileage balances
Assets Transferred Assets Transferred
Assets at Emp Disposal Assets at Employee Disposal
Expenses Payments Expenses Payments
Int Free and Low Int Loans Interest Free and Low Interest Loans
Living Accommodation Living Accommodation
Other Items Other Items
Payments Made For Emp Payments made on behalf of Employee
Pvt Med Treatment or Insurance Private Medical Treatment or Medical Insurance
Relocation Expenses Relocation Expenses
Services Supplied Services Supplied
P11D Shares P11D Shares
Vans 2002_03 Vans for year 2002 - 2003
Vouchers or Credit Cards Vouchers or Credit Cards
Car and Car Fuel Car and Car Fuel
MARORS MARORS
Mileage Allowance and PPayment Mileage Allowance and Passengar Payments
PAYE Agreement Dispensation or PAYE Settlement Agreement
Pennies for Charity Deduction of residual pennies from employee net pay for charity
Setup Pennies For Charity Balance Setup element for performing balance initialization
Retro NI Retro national insurance details
Retro NI A Retro NI A
Retro NI B Retro NI B
Retro NI C Retro NI C
Retro NI D Retro NI D
Retro NI E Retro NI E
Retro NI J Deferment Retro NI J deferment
Retro NI L Deferment Retro NI L deferment
Retro NI Arrears Retro NI arrears
Retro NI Employer Retro NI employer
RTI Information Stores the Normal Hours Band
Foreign Tax Direct element that records the amount of foreign tax input by employer for deduction
Foreign Tax Credit Relief Indirect element that records the value of FTCR for a payment
Setup Foreign Tax Setup element required for balance initialization

Proration

Oracle HRMS enables you to calculate proportionate earnings amounts whenever payroll-relevant data is changed during a payroll period, for example, if an employee joins or leaves the company during a payroll period or if an employee's pay grade changes during a payroll period. Oracle HRMS performs a proration calculation to ensure that the employees' earnings are calculated correctly after taking account of these changes.

If you want to prorate an earnings element, such as basic salary, assign an event group to it. An event group is a collection of proration points that share similar characteristics. You can create an event group to group together all proration points that affect an employee's salary, for example. This event group could contain proration points such as salary increases, assignment changes, and pay rate changes.

You then process the element using a formula that handles proration. You can either use a payroll formula that handles proration, or create a separate proration formula that runs after the main payroll formula only in payroll periods when a proration event occurs.

See: Sample Payroll Formulas Enabled for Proration (UK), Oracle HRMS FastFormula User Guide, Sample Proration Formula, Oracle HRMS FastFormula User Guide, and Writing Proration Formulas, Oracle HRMS FastFormula User Guide

When you define the event group, you select the events that will activate proration calculation, such as:

Note: The proration unit can be periods, days, or hours. Proration can be applied to a monetary, time-based, or numeric amount.

Net-to-Gross Processing of Earnings

Oracle Payroll supports net to gross processing of earnings elements. For example, you can define a bonus payment that is a fixed net amount. Oracle Payroll calculates the gross amount needed to meet the net pay. You define which taxes and other deductions the employer is willing to pay by selecting the balances that can be used in the net-to-gross processing.

The following formulas are used in net-to-gross processing:

Net-to-gross elements are always processed separately, after the main payroll run has processed.

For details of how to set up a net-to-gross element, see Setting Up Elements for Net-to-Gross Processing

Balances for Net-to-Gross Processing

When you define the element for net-to-gross processing, you select which balances to exclude from the gross-up calculations. The employer pays all deductions except the ones you exclude.

We recommend that you exclude balances as follows:

If you are running net to gross for: You should exclude these balances:
PAYE and NI (PRSI for Ireland) only Total Deductions, Superannuation Total
PAYE, NI (PRSI for Ireland), and Superannuation Total Deductions

If these balances do not appear in the list of values in the Name field on the Exclude Balances window, they are not enabled for net-to-gross processing and so you do not need to exclude them.

See Excluding Balances from an Element's Grossup Calculation

Processing for Net-to-Gross Calculation

The formulas for net-to-gross processing do the following:

Arrears Management

When you define a pretax or voluntary deduction, you can specify how it should be processed when an employee has insufficient funds to take the full deduction. You can use an element Extra Information Type called Arrearage Options (PQP_GB_ARREARAGE_INFO) to specify whether arrears are held for the element and whether partial deductions can be taken. There are four possibilities, as shown in the following table:

Automatic Arrears Processing Enable Partial Deductions Result when there are Insufficient Funds Clearing Arrears
Yes Yes Take partial amount and put the rest in arrears Clear as much arrears as funds allow.
Yes No Put entire deduction amount into arrears (deduction is zero). Only clear arrears is there are sufficient funds to clear all arrears.
No Yes Take partial amount and nothing goes into arrears. N/A
No No Deduction amount is zero and nothing is considered for arrears. N/A

Note: If you change the Arrearage Options for the seeded GAYE element, this will not affect its processing. Partial deductions are not allowed for GAYE, and an arrearage balance is not maintained. This is controlled by the GAYE formula.

When you use the pensions element template, it creates two element level balances, To Arrears and Not Taken, and an information element (<scheme prefix> Special Features) to manage arrearage. If you are defining your own pre-tax or voluntary deduction in the Element window, you must create these balances and element too. The formula associated with your deduction element must feed these balances with the amount to be added to, or subtracted from, arrears in each payroll run.

For the full sequence of setup steps, see: Setting Up Deductions for Arrearage.

Pre-tax Deductions

When there are insufficient earnings to pay a pre-tax deduction and leave enough to pay all taxes, court orders, and positive or zero net pay, the pre-tax deduction must be reduced. The payroll run performs iterative processing to ensure that the maximum deduction is taken while allowing taxes, court orders, and positive or zero net pay to be paid.

If you enable partial deductions for the element (using the Arrearage Options EIT), the payroll run takes the maximum deduction possible. If you disable partial deductions, the payroll run takes no pre-tax deduction when there are insufficient funds. You also specify whether to hold the arrears in a balance so that the payroll run can try to deduct this amount in a subsequent payroll period. See: Arrears Management.

Multiple Pre-tax Deductions

If an employee has multiple pre-tax deductions, the payroll run reduces first the element with the lowest processing priority (that is, the highest priority number) when there are insufficient earnings. You can also set an iterative priority on the Advanced tab of the Element window. The element with the highest iterative priority (that is, the lowest priority number) is reduced first.

Important: You must ensure that the iterative priority sequence follows the element processing priority sequence, but in reverse order. The following table lists some of the elements that are created by the pensions template, plus the seeded GAYE element. Based on these values, the GAYE element would be processed last, but during iteration it would be the first one to be reduced. The element priority should be in the range of 4000 to 5000 and the Iterative priority should be in the range of 1 to 1500.

Name Processing Priority Iterative Priority
Occupational Pension Scheme 4100 400
Family & Widower Benefit 4150 350
Buy Back Years 4200 300
Additional Contributions 4250 250
AVC 4300 200
Stakeholders 4350 150
FSAVC 4400 100
Personal Pension 4450 50
GAYE 4500 10

Iterative Formula

Oracle Payroll uses an iterative process to calculate the highest pre-tax deduction it can take while still allowing taxes and court orders to be paid in full, and net pay plus an Iterative Exclude Amt to be greater than or equal to zero. The Iterative Exclude Amt is a balance that you can feed with voluntary deductions so that the payroll run stops iterating if net pay has only been pushed into negative because of a voluntary deduction.

When you define a pre-tax deduction, you must associate an iterative formula (such as the seeded formula PQP_GB_ITERATIVE_ARREARAGE ) with the generated element, along with an iterative rule (L_STOPPER), which stops the iterations. You can view or create rules on the Iterative Rules window, which opens from the Element window.

Deductions you create using the Pensions template automatically support iterative processing and arrearage. The seeded GAYE element also supports iterative processing, although it does not allow partial deductions nor does it maintain an arrears balance. The formula attached to this element contains comments to assist you in creating your own formulas, if required.

Adjust To Within Amount

By default, the iterations stop when net pay plus the Iterative Exclude Amt is between 0 and GBP 1. You can change the precision of the iterative calculation by changing from GBP 1 to another figure in the Adjust To Within Amount field. Changing this figure to zero increases the number of iterations the calculation must perform. The Adjust To Within Amount field is present at business group level in an organization information type called Iterative Rules. In this flexfield, you can also select an iterative method; it defaults to interpolation but you can change it to binary.

Iterative Processing for Pre-tax Deductions

The calculation of the pre-tax deduction iterates as follows:

You can set the maximum number of iterations in Payroll Action Parameters. By default this is 25.

Important: The iterative process will not work efficiently if payroll is trying to process both iteration and the grossing up of an element for a particular assignment. If the process does not achieve the result within the maximum number of iterations (set in Payroll Action Parameters), it will fail.

Setting Up Total Compensation Elements for Payroll

Follow this process to set up earnings, deductions, and other items in the compensation package you offer to employees. There are additional steps for setting up the following types of compensation and benefits:

Compensation and Benefits Setup

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Define Validation and Lookups

Define validation for entries of any new elements you are creating.

  1. To restrict compensation entries to a list of valid values, define a new Lookup Type and add Lookup Values for this new lookup.

    See: Adding Lookup Types and Values, Oracle HRMS Configuring, Reporting amd System Administration Guide

  2. To validate compensation entries using formulas, write a formula of type Element Input Validation.

    See: Writing Formulas for Validation, Oracle HRMS FastFormula User Guide

  3. To create a matrix of values (such as bonus amount against years of service) for use in formulas or QuickPaint reports, set up user tables.

    See: Setting Up User Tables, Columns, and Rows, Oracle HRMS Configuring, Reporting and System Administration Guide

    Define Element Skip Rules

  4. If some elements should not be processed in every payroll run, write formulas for element skip rules defining the conditions when the run should process these elements.

    See: Writing Formulas for Element Skip Rules, Oracle HRMS FastFormula User Guide

    Set Up Proration

  5. If you have earnings or deductions that should be prorated if relevant factors (such as pay rates, grades, or working hours) change during a pay period, make sure you have completed the basic proration setup steps.

    See: Setting Up Proration

    Set Up Historic Rates

  6. If you want to calculate your employees' arrears payments at the rate that existed when the work was done, rather than at the current rate, make sure you have completed the basic historic rates setup steps.

    See: Setting Up Historic Rates

    Define Elements

  7. Define elements and element input values:

  8. Define frequency rules, if necessary, to determine the periods in which the element should be processed.

    See: Defining Frequency Rules

    Define Links for Predefined and User-defined Elements

  9. If the payroll costs of an element should be distributed over other elements, define a distribution set.

    See: Defining an Element or Distribution Set

  10. Define element links to identify one or more groups of employees who are eligible to receive an element.

    See: Defining Element Links

    See also: Running the Element Link Details Report

    Define Balances

    Oracle Payroll has many predefined balances installed with the system. You can define other balances.

  11. Create any new balance dimensions you require.

    See: Creating Balance Dimensions

  12. Define secondary element classifications.

    See: Defining Secondary Element Classifications

  13. Create classes of balance feeds by entering or removing secondary classifications for your elements.

    See: Creating Classes of Balance Feeds

  14. Define user balances and create balance feeds for individual elements.

    See: Defining User Balances

    See: Creating Balance Feeds for Individual Elements

    For information on uploading initial balances, please refer to the appropriate Legislative Balance Initialization technical essay.

  15. Upload initial values for balances if you are migrating from an existing system.

    See: Uploading Initial Balances

    Write Payroll Formulas

  16. Oracle Payroll provides formulas for processing legislative deductions. For other elements, you can write formulas to calculate element results and other processing outcomes in payroll runs.

    See: Writing Payroll Formulas for Elements, Oracle HRMS FastFormula User Guide

    Define Formula Processing and Result Rules

  17. To define which formula processes an element for Active assignments (and optionally for other assignment statuses), define processing rules for the element. To specify what happens to formula results (that is, the values you include in the formula's Return statement), define formula result rules.

    See: Defining Formula Processing and Result Rules

    Define Rules for Net-to-Gross Processing

    For earnings to be grossed up, you can define rules for iterative processing and for excluding balances.

  18. Define rules for the processing of the iterative formula.

    See: Defining Iterative Processing Rules

  19. Specify which balances to exclude from the net-to-gross calculation.

    See: Excluding Balances From an Element's Grossup Calculation

    Define Arrearage Rules for Deductions

  20. Follow the setup steps if you want to enable partial deductions when there are insufficient funds, or to maintain an arrears balance.

    See: Setting Up Deductions for Arrears Management

    Make Entries

  21. For elements without Standard links, make entries of your elements for all employee who should receive them.

    See: Making Manual Element Entries

Defining Frequency Rules

Recurring elements may require frequency rules to determine in which pay periods they should process. For example, a monthly deduction might be processed in the third period of the month for weekly-paid employees and in the second period of the month for employees paid on a semi-monthly basis.

It is possible to set frequency rules to process once- or twice-yearly deductions on monthly, quarterly, or semi-annual payrolls. These rules' periods then refer to periods within a year (months, quarters or half years) instead or periods within a month. However, for infrequent deductions, you may prefer to define them as nonrecurring and use BEE to make entries when required.

Use the Frequency Rules window to define or change an element's frequency rules at any time.

US and Canada Payroll only: Use the Deduction form to define or change a deduction's frequency rules.

Mexico only: Use the Element Design Wizard to define or change a deduction's frequency rules.

To define frequency rules

  1. Select the name of the payroll for which you want to define frequency rules.

  2. In the Date field, you can override the default date that the payroll run uses to assess the frequency rule, if required.

    For example, suppose you are defining frequency rules for a monthly deduction. If you select Effective Date for a Weekly payroll and check Processing Period 1, the payroll run only takes the deduction if the run's effective date is in the first week of the month.

  3. Check the boxes for the processing period or periods in which you want the element to process for each payroll.

    For example, if you want a monthly deduction to process in the second week of the month for a weekly payroll, check the box under 2 for that payroll.

    Notice that some periods are not available for all payrolls. For example, a bi-weekly payroll can only have, at most, three periods a month, so periods 4, 5, and 6 are not relevant to this payroll.

Defining Formula Processing and Result Rules

Use the Formula Result Rules window to associate one or more formula processing rules with an element.

At minimum, an element needs one standard processing rule. This identifies the formula the payroll run uses to process the element for employees with an Active assignment status (and a Payroll system status of Process). It is also the default formula for other assignment statuses. However, you can define other processing rules if you need to use different formulas for assignments at other statuses. For example, you could have two rules for a Wages element: Standard Wages and Paid Training Leave.

Also use this window to define how each formula result is used by the payroll run.

Correcting and Updating Processing Rules

When you add a formula result, it takes on the effective end date of its processing rule. Any date effective changes you make to existing processing rules can affect formula results as follows:

To associate processing rules with elements

  1. Set your effective date to the start date for the processing rule.

  2. Select the element for which you are entering rules. The element's description and classification automatically display.

  3. Click Find to display any existing processing rules for this element.

  4. In the Processing Rules region, select Standard and the regular formula for the element. If you have other formulas for this element, select them and the assignment statuses you want to associate with them.

    Note: If you select a formula with inputs that do not match the element, you will receive a warning message, but you can still save your rule. Remember to update the formula before running the payroll.

  5. Save your entries.

To define formula result rules for each processing rule

  1. Click on a processing rule to select it.

  2. In the Formula Results region, select a formula result name from the list of results specified when the formula was written.

  3. Select the appropriate formula result type. There are five possible types:

    Direct result: This is the element's run result (if you send the result to the element's pay value), or a direct result updating another of the element's input values.

    Indirect result: This result passes as an element entry to another nonrecurring element not yet processed.

    Message: The formula issues messages under certain conditions. For example, a formula can check a loan repayment balance and, if the balance is zero, issue the message "Loan is repaid." You read formula messages using the View Run Messages window.

    Order Indirect: This result updates the subpriority of the element you select in the Element field.

    Stop: This formula result uses the Date Earned of the payroll run to put an end date on a recurring entry of this or another element (which must be defined with multiple entries not allowed.)

    Update recurring entry: This result updates recurring entries of this or another element on the effective date of the payroll run. The receiving element must be defined with multiple entries not allowed unless you are passing a recurring element's entries to itself, that is updating another entry of the same element.

    Important: If your result type is Update Recurring Entry, then the application inserts an entry and any future dated changes to the entry remain unchanged by the results of the current payroll run.

  4. For all formula result types except Direct Result or Message, select the name of the element to which you want to pass the formula result. This element must have a processing priority causing it to process after the element sending the result.

  5. For the formula result types Direct Result, Indirect Result, and Update Recurring Entry, select the input value to update.

  6. If you select Message as the formula result type, select a message severity level. There are three choices:

    Fatal: When a message with this severity results from your formula, the run rolls back all processing for the employee assignment.

    Warning: A message with this level of severity does not affect payroll processing but warns the user of a possible problem.

    Information: A message with this level of severity simply gives information.

Setting Up Net-to-Gross and Iterative Processing

Setting Up Elements for Net-to-Gross Processing

Follow these steps to set up elements for net-to-gross processing.

To set up elements for net-to-gross processing

  1. Define the elements, making sure you select the following rules:

  2. Choose the Input Values button to define the input values for these elements, as follows:

    Input Values for Net-to-Gross Earnings Types
    Input Value Name Purpose of Entry Checkbox: Required Checkbox: User Enterable Checkbox: Database Item
    Pay Value Oracle Payroll returns the gross pay to this input value when it has completed the net-to-gross calculations. No Yes Yes
    Amount Gives iterative formula the desired net pay. Yes Yes No
    Low Gross Used by the iterative formula to hold the lower gross pay guess, to feed into the next iteration of the formula. No No No
    High Gross Used by the iterative formula to hold the higher gross pay guess, to feed into the next iteration of the formula. No No No
    Remainder The amount by which the additional pay to be paid by the employer (gross minus desired net) differs from the total of the balances that are eligible for grossup processing. Returned by the iterative formula. No No No
    To Within The amount by which actual net can differ from desired net after normal processing. Must not be zero but can be a nominal amount such as 0.01. Yes Yes No
    Method The method of iterative calculation: binary or interpolation. This determines which function the iterative formula calls. Use the lookup type ITERATIVE_METHOD and select the default INTERPOLATION, since this is usually the more efficient method. Yes Yes No
    Additional Amount The amount to add to desired net to calculate gross pay. Returned by the iterative formula. No No No

    See: Defining an Element's Input Values

  3. Choose the Balance Feeds button to confirm which balances feed your net-to-gross element.

    See: Creating Balance Feeds for Individual Elements

  4. Choose the Balance Feeds Control button to modify balance feeds that are not correct.

    See: Creating Classes of Balance Feeds

  5. Choose the Iterative Rules button to set up the processing rules for the iterative formula.

    See: Defining Iterative Processing Rules

  6. Choose the Exclude Balances button to select the deductions to be paid by the employer.

    See: Excluding Balances From an Element's Grossup Calculation

  7. Define the formula result rules for your elements. Select the formula CALC_GROSSUP_PAY_VALUE for the Standard processing rule. Create a formula result rule to feed the PAYMENT_AMOUNT result as a direct result to the element's pay value.

    See: Defining Formula Processing and Result Rules

  8. Define element links for your elements.

Defining Iterative Processing Rules

Use the Iterative Processing Rules window to specify how to use the iterative formula results for an element. For example, you can specify which formula result adjusts an input value to feed into the next processing iteration, and which result stops the iterations.

To define iterative processing rules

  1. Enter or query the element in the Element window - making sure the Iterative Flag check box on the Advanced tab is checked - and choose the Iterative Rules button.

  2. Select a formula result in the Return Name field, and select a rule type: Adjust, Message, or Stop.

  3. For a message, select the severity level: Fatal error, Information, or Warning. A Fatal message creates an error for the assignment action.

  4. For an Adjust type, select the input value to adjust.

  5. Save your work.

    If you are using the DEFAULT_GROSSUP iterative formula, then define the following rules:

    Note: For South African users only: If you are using the ZA_DEFAULT_GROSSUP iterative formula, then define the following rules:

    Return Name Rule Type Input Value to Adjust
    ADDITIONAL _AMOUNT Adjust Additional Amount
    HIGH_GROSS Adjust High Gross
    LOW_GROSS Adjust Low Gross
    REMAINDER Adjust Remainder
    STOPPER Stop --
    For South Africa users only:
    TARGET_AMOUNT
    Adjust Amount

Running the Gross to Net Summary Report (GB)

Run this report to see details of total earnings and deductions summarized for a specified payroll and payroll period. You may also limit the report's information by consolidation set.

The report shows three totals (Net Payment, Total Payment, Total Cost) derived from four balance totals:

These balance totals are broken down, first by element classification totals, then by element type totals within each classification.

You run the report in the Submit Requests window.

To run the Gross to Net Summary Report (GB)

  1. In the Name field, select the report name. Then enter the Parameters field to open the Parameters window.

  2. Select the payroll and payroll period for which you want to see the information.

  3. If you want to restrict the information by consolidation set, select the name of the set.

  4. Choose the Submit button.

Running the Gross to Net Summary Report (GB) - Batch

Run this report to see details of total earnings and deductions for individual payrolls separately in a payroll group. You run the report in the Submit Requests window.

The report shows three totals (Net Payment, Total Payment, Total Cost) derived from four balance totals:

To run the Gross to Net Summary Report (GB) – Batch process

  1. In the Name field, select the report name. Then enter the Parameters field to open the Parameters window.

  2. Select the payroll group.

  3. Select the payroll period for which you want to see the information.

  4. Click Submit.

Setting Up Proration and Retro-Notification

Setting Up Proration or Retro-Notification

Follow these steps if you want to set up your system for proration or retro-notification.

To complete basic setup for proration or retro-notification

  1. In the Table Event Updates window, ensure that the events you want to use are already included in the required tables. Enter the table name. The lower half of the screen displays the fields that trigger proration or retro-notification if their values are changed.

    If the table has already been defined but the required event is missing, create either an Update, Delete, or Insert event and enter the table row or column to which the event refers. You can only enter a column name if you are creating an Update event. Select the change type defined by the event.

    Note: The Table Event Update window is not available in all localizations.

    See: Making Table Event Updates, Oracle HRMS Payroll Processing Management Guide

  2. If the events you require have not been defined in the Table Event Update window, set up the dynamic triggers for proration or retro-notification in the Dynamic Trigger Generation window. The triggers you need depend on the method you use to compensate your employees. For example, the tables required for compensation using Salary Administration are different from those required for compensation using pay grades. The tables you are likely to use are:

    See: Defining Dynamic Triggers, Oracle HRMS Payroll Processing Management Guide

    Note: French users: Ensure you enable the dynamic triggers for PAY_ELEMENT_ENTRIES_F and PER_ALL_ASSIGNMENTS_F.

  3. Create an event group for your proration or retro-notification events. You must create the event groups before you can create your elements.

    See: Defining Event Groups

  4. Select the Incident Register functional area in the Functional Area Maintenance window. Make sure that your triggers are included in this functional area. If your triggers are not included, insert them.

    You must also activate the triggers according to legislation or business group. For more information, see: Grouping Dynamic Triggers into Legislative Functional Areas, Oracle HRMS Payroll Processing Management Guide

    Setup for retro-notification should now be complete, meaning you can proceed to running the appropriate report. However, if you are setting up proration continue with the next steps.

    See: Running the Retro-Notifications Report, Oracle HRMS Payroll Processing Management Guide

To set up the elements for proration

  1. Create your proration element. US and Mexico users: Initiate the earnings type or deduction, then query the generated element in the Element window to add a proration group and, optionally, a proration formula.

  2. Define the input values for the element. For example, if you were using the sample payroll formulas that are enabled for proration, you would create the following input values:

    See: Defining an Element's Input Values

  3. Link the element to a specific payroll or payrolls. If you want the element to be used automatically each time the payroll is assigned, select the Standard check box. If you do not select this check box, you must enter the element for each assignment.

    See: Defining Element Links

To create the formula

  1. Check that the database items to be used in your formula are available. If the required database items are not available, create them.

  2. Create the proration formula or write a payroll formula that is enabled for proration.

    To create a proration formula, see: Writing Proration Formulas, Oracle HRMS FastFormula User Guide

    UK users: For examples of payroll formulas enabled for proration, see: Sample Payroll Formulas Enabled for Proration, Oracle HRMS FastFormula User Guide

    For more information on writing formulas, see: Writing or Editing a Formula, Oracle HRMS FastFormula User Guide and Writing Payroll Formulas for Elements, Oracle HRMS FastFormula User Guide

  3. Link the formula to your element in the Formula Result Rules window.

    See: Defining Formula Processing and Result Rules

  4. Attach the element to the salary basis if the salary is relevant for proration. Select the input value you created (such as Amount) in the Input Value Name field of the Salary Basis window.

    See: Defining a Salary Basis

Defining Event Groups

You define an event group from the Table Event Group window. You use an event group to group together all proration or retro-notification points that affect an employee's salary, such as salary increases.

To define an event group

  1. Enter a name for your event group.

  2. Select one of the following event group types:

    Proration for a proration event group

    Retro for a retro-notification event group

  3. Select the proration or retro period.

  4. Save your entries.

  5. Select the events that can trigger proration or retro-notification in the Datetracked Events region. To do this, select the update type, the table containing the data, and the table column.

  6. Save your work.

Deductions for Arrearage

Setting Up Deductions for Arrearage

When you use the Pensions element template, the template automatically creates the objects required to support arrears management. If you are defining your own pre-tax or voluntary deduction for which you want to manage arrears, follow these steps.

  1. Using the Information Types Security window, add the PQP_GB_ARREARAGE_INFO element information type to your responsibility.

  2. Using the Element window, define your deduction element in the pre-tax or voluntary deduction classifications. Optionally, define a Clear Arrears input value for the element, which can have the value Yes or No. Set this input value to No, by default. If you set it to Yes, the payroll run cancels any existing arrears and does not take arrears in the current pay period if there are insufficient funds.

  3. Choose the Extra Information button on the Element window, click on Arrearage Options and select the appropriate options.

  4. Using the Balances window, create two balances - Arrears and Not Taken - to keep track of the arrears amount and the not taken amount. Select the following dimensions for these balances:

  5. Using the Element window, create a non-recurring element in the Information classification called <BASE NAME> Special Features.

    In the Balance Feeds window, use these input values to feed the balances of the same name.

  6. Using the Formula window, create or edit the deduction's payroll formula to call the arrearage function. See: Sample Deduction Formula Calling the Arrearage Function, Oracle HRMS FastFormula User Guide.

    Note: Where the deduction is subject to an annual limit, the formula must ensure that the limit is assessed before deciding whether to clear arrears, when there are sufficient funds.

  7. Using the Formula Results window, find your base deduction element, select the formula and create two indirect results:

Balances

Payroll Balances

Balances show the positive or negative accumulation of particular values over periods of time. They are fed either by the direct run results (that is, Pay Values) of elements processed in the payroll run, or by input values. For example, in North American installations, the input value Hours of the element Time Entry Wages feeds the balance Regular Hours Worked.

Balance Dimensions and Levels

Balances exist for various time dimensions, such as current run, period to date, month, quarter to date, and year to date.

Balances also exist at different levels, such as assignment level or person level. Balances for individual employee assignments are at the assignment level (in North America, they can be at the assignment level within a GRE). If your enterprise permits employees to hold more than one assignment at the same time, you can hold balances at the person level. For example, a person level Gross Earnings balance is the sum of an employee's assignment level Gross Earnings balances.

Choosing Elements To Feed a Balance

You can select elements to feed a balance in three ways:

Note: Secondary classifications are not used in the North American versions of Oracle Payroll at this time.

You can choose any number of classifications or any number of elements to feed a balance. However you cannot use a mixture of classifications and individual elements to feed a balance. When you select an element or classification as a balance feed, you specify whether the run results (or input values) should add to or subtract from the balance.

Startup and User Defined Balances

The balances and balance feeds for the elements supplied with Oracle Payroll are present in the system when you receive it. For North American users, when you initiate earnings types, deductions and other items that process in the payroll run, the system generates the appropriate balances and balance feeds together with the necessary elements.

You can define any additional balances your enterprise requires. For example, you may require a Pensionable Earnings balance for a pension plan your enterprise offers employees.

UK Payroll Balance Dimensions

The following dimensions are predefined. You can create additional dimensions at the assignment level, if you require them.

Standard Dimensions

You are likely to use these dimensions to sum values for single assignments for your own balances.

_ASG_RUN during one payroll run
_ASG_CALENDAR_QTD since start of calendar year, reset every three months
_ASG_CALENDAR_YTD since start of calendar year, reset every year
ASG_QTD since start of tax year, reset every three months
ASG_YTD since the start of payroll processing year
_ASG_PROC_PTD for payroll processing period
ASG_ITD since the start of assignment

Statutory Dimensions - Single Assignments

These statutory dimensions are normally used for summing balance feeds for single assignments to predefined balances.

_ASG_TRANSFER_PTD since the start of the statutory period; used in NI and PAYE formulas; additionally, used in pennies for charity balances.

Note: The statutory period is the same as the processing period but includes results from previous payrolls if the assignment has transferred.

_ASG_TD_YTD_ASG_TD_YTD since the start of calendar year or since a transfer from a different tax scheme; used in PAYE formula and EOY reporting
_ASG_STAT_YTD since the start of tax year; used in NI Class 1a calculation and reporting
_ASG_TD_ITD since start of assignment or since transfer from a different tax scheme; used in PAYE formula
_ASG_PROC_YTD since the latest of start date of the processing year or start date of the employee on that payroll

Statutory Dimensions - Multiple Assignments

These statutory dimensions are usually associated with predefined balances for summing balance feeds for an employee's multiple assignments when those assignments are in the same tax scheme, that is, report under the same tax reference.

_PER_TD_YTD  
_PER_TD_DIR_YTD since the latest of the start of a directorship or the start of the processing year; used in NI formulas for directors
_PER_NI_PTD  

Payments Dimension

This is a special dimension which aggregates results from payroll runs that have been picked up in a particular pre-payments run.

_PAYMENTS for a set of payroll runs

Court Order Dimensions

The element dimensions associated with court orders aggregate results for a particular element entry for single assignments. These dimensions are not available for selection from the Balances form.

_ELEMENT_ITD since the inception of that element entry
_ELEMENT_PTD since the start of the processing period

PTO Accrual Dimensions

You can select these dimensions in the Accrual Plan window to determine the date for resetting the payroll balance that stores gross accruals.

Dimensions for business groups that use Date Paid as the PTO Balance Type:

_ASG_PTO_YTD since the start of the calendar year
_ASG_PTO_SM_YTD since 1 June
_ASG_PTO_HD_YTD since the anniversary of the assignment's hire date

Dimensions for business groups that use Date Earned as the PTO Balance Type:

_ASG_PTO_DE_YTD since the start of the calendar year
_ASG_PTO_DE_SM_YTD since 1 June
_ASG_PTO_DE_HD_YTD since the anniversary of the assignment's hire date

Pennies for Charity Dimensions

These dimensions are associated with pennies for charity deductions:

_ASG_TD_YTD since the start of the processing year
_PER_TD_PTD since the start of the processing period
_PER_TD_YTD since the start of the processing year

Defining Secondary Element Classifications

Oracle Payroll users can define secondary classifications to create subsets within primary classifications. You decide which elements, from a primary classification, are in each secondary classification, then you use the secondary classification to feed balances.

Note: If you are an HR-only user, you cannot define secondary classifications. For more information on user types and the associated HR: User Type profile option, see: User Profiles, Oracle HRMS Configuring, Reporting, and System Administration Guide.

To create secondary element classifications

  1. Query a primary element classification. The check box indicates whether it is for nonpayment elements. These are elements that do not feed the Payments balance.

    On the Priority, and Costing tabs, you can view the following information about the classification:

    Priority: The processing range displays together with the default priority.

    Costable: If this check box is checked, you can select all costing options on the element link for elements of this classification, including Not Costed.

    Distributable: If this check box is checked, you can create a distribution set from elements of this classification over which you can distribute costs.

    Debit or Credit: These option buttons display the cost type for elements in the classification, that is, whether the accounts they feed are to be debited or credited.

    On the Frequency Rules tab, you can view the following information about the classification:

    Enabled: If this check box is checked, you can define frequency rules for elements of this classification. The payroll run uses a frequency rule to determine in which pay periods it processes a recurring element.

    Date: The date the payroll run uses, by default, to assess frequency rules in your localization. You can select a different date when you define a frequency rule.

  2. Enter a unique name for the secondary classification you want to associate with the displayed primary classification. You can also add a description.

  3. Select the Default check box if you want all elements in the primary classification to be in the secondary classification by default. Then, if there are any exceptions, you must manually remove these elements from the secondary classification. You can do this at any time using the Balance Feed Control window, which opens from the Element window.

    Note: For some legislations, Oracle Payroll has already defined a number of secondary classifications. Some of these are default classifications, but not all. You cannot delete these classifications, and you cannot delete them from the Balance Feed Control window for predefined elements.

Creating Balance Feeds for Individual Elements

Use the Balance Feeds window to select balances to be fed by the input values of an element. Balances are either fed by whole classifications of elements or by individual elements, but not by both. Therefore, in this window you cannot select balances that are fed by classifications. You can query a balance in the Balance window and choose the Classifications button to view the list of classifications that feed it.

You can use an element to feed as many balances as you require.

To create balance feeds for one element

  1. Set your effective date to when you want the balance feed to start.

  2. Enter or query the element in the Element window and choose the Balance Feeds button.

  3. In the Balance Feeds window, select the input value that you want to feed the balance with.

    The list displays all the input values defined for the element. These input values may have different units of measure. When you select an input value its unit of measure displays in the Units field. To feed a balance with the element's direct run result, select Pay Value.

  4. Select the balance you want the input value to feed.

    The list restricts your choice to balances having the same unit of measure as the input value you selected.

  5. Select Add or Subtract for the balance feed.

    Note: Secondary classifications and balance feed controls currently do not apply to the US version of Oracle Payroll.

Creating Classes of Balance Feeds

In the Balance Feed Control window, you can classify an element using secondary classifications. These determine the balances that the element feeds. You can query a balance in the Balance window and choose the Classifications button to view the list of classifications that feed it.

To select or remove secondary element classifications

  1. Set your effective date to when you want the element to begin feeding the balances that the secondary classifications feed.

  2. Enter or query the element in the Element window and choose the Balance Feed Control button.

  3. In the Balance Feed Control window, delete any default secondary classifications you do not require for the element.

    When this window opens, it displays any default secondary classifications for the element's primary classification. Unless they are predefined, you can delete any of these classifications, and you can change their effective start dates.

  4. Select any non-default secondary classifications you require.

Defining User Balances

Defining a balance includes defining its feeds and dimensions. When selecting feeds for the balance you have to choose between specifying element input values directly, and selecting element classifications to determine the feeds. You cannot choose both methods together.

You can group similar balances - such as all earnings balances - in a single category for quicker and easier processing. Each localization has a defined set of categories. If there are no categories in the list of values, this means your legislation is not yet using the category functionality.

Balances often share a common relevancy to certain assignments. In some localizations, you can define base balances to imply a relationship between the balances that can be relied upon when processing and reporting. For example, "Loan Repayment" could be the base balance for "Loan Repayment Arrears".

You define balances in the Balance window.

To define a user balance

  1. Do one of the following:

  2. Optionally, select a balance category in the Category field.

    Australian Users: Attach all user-defined balances to the relevant balance category and to the _ASG_RUN and _ASG_YTD dimensions to populate the run balances. You must attach all user-defined allowance balances required to be reported individually on the Payment Summary to the Balance Category of Allowance and to the _ASG_LE_RUN and _ASG_LE_YTD dimensions.

    New Zealand Users: You must assign a balance category for each element that you define.

  3. Optionally, select a Base Balance.

  4. Enter the unit of measure for the balance. The choices are days, hours (listed in different formats), integer, money and number. If you select money as the unit you must also select a currency.

    Note: Do not select the Use for Remuneration check box. This displays the balance that has been predefined as the Remuneration balance. Only one balance within a legislation can have this value.

  5. To define a primary balance - one fed by a single element - select an element and input value in the Primary Balance region (if this region is available for your localization).

  6. Go to the Balance Feeds window or the Balance Classifications window.

    In the Balance Feeds window:

    In the Balance Classifications window:

    Note: Secondary classifications are not used in the North American or Singapore versions of Oracle Payroll at this time.

    Balance Dimensions Window

  7. Choose the Dimensions button.

  8. Select the dimensions you require.

    New Zealand Users: For each new balance, you must attach the balance dimension _ASG_RUN for it to generate run balances.

    Australian Users: Select the _ASG_RUN and _ASG_YTD dimensions for all user-defined balances. You must attach the _ASG_LE_YTD and _ASG_LE_RUN dimensions to the allowance balances required in the Payment Summary reports.

    You can remove any dimension previously selected for a user-defined balance. You can also add dimensions to the startup balances included with your system, and later remove these additional dimensions. However, you cannot remove the dimensions that were predefined for the startup balances.

    Note: To hold balances for a fiscal year that is different from the calendar year, you must supply the fiscal year start date for your Business Group.

  9. Optionally, select the Grossup Balance check box for one of the dimensions, to make the balance eligible for grossup.

    UK users: If you want to make the balance eligible for grossup, you must select this check box for the _ASG_RUN dimension.

    Initial Balance Feed Window

  10. Choose the Initial Feed button.

  11. In the Initial Balance Feed window you can see details of the element and input value used for the Initial Balance feed. This feed is defined by implementation consultants prior to performing an initial balance upload at implementation time.

    Balance Attributes window

  12. Choose the Attributes button.

  13. Select an attribute definition and a dimension.

    Balance attributes identify which balances can be used in which reports. Attributes can be predefined by localizations, created as a result of predefined defaults, or you can enter them in this window.

    Note: For UK SOE Balances, ensure you attach the attribute to the Balances1 segment in the Business Group Information. Attach the attribute to each balance you want to display on the Online SOE. For every balance with an attached attribute, you must add individual balance to the SOE Details Information (in the Business Group Information).

    The balances you attach to the SOE Details Information are defined at business group level, hence even if you change the user category profile it will not have any result on the data defined in the SOE Details Information.

    Note: Saudi Users: Oracle Payroll provides Saudi SOE Balance Attributes to view the SOE report. You can use the predefined balance attributes or create your own balance attributes.

Excluding Balances From an Element's Grossup Calculation

For elements that require a net-to-gross (or grossup) calculation, you can specify which balances are included in the calculation. By default, all balances that can be grossed up are included. Use the Exclude Balances window to view these balances and to exclude any of them from the element's calculation.

US and Canadian users: You can exclude additional balances for individual element entries using the Gross Up Balances window (which opens from the Element Entries window).

To exclude balances from an element's grossup calculation

  1. Enter or query the element in the Element window - making sure the Gross Up check box on the Advanced tab is checked - and choose the Exclude Balances button.

  2. Select any balances that you want to exclude from the element's calculation. The list of values shows all balances that are eligible for grossup.

    Note: A balance is eligible for grossup if the Grossup Balance check box is checked for one of its dimensions in the Balance Dimensions window.

  3. Save your work.

Uploading Initial Balances

Setting initial values for balances is an essential task for new customers migrating from other systems.

Such balances typically consist of both legislative and customer defined balances. For example, a legislative balance could be the amount of tax deducted for each employee during the tax year. A customer defined balance could be the number of vacation days taken by each employee during the calendar year.

The correct initial setting of these balances is essential for subsequent processing to be valid.

The Initial Balance Upload process allows the specification and loading of initial balances into the system. System implementers use this process once only, on migration. After that, balance maintenance is carried out automatically by Oracle Payroll.

To load initial balances into Oracle Payroll

  1. Define an element and input value for the initial balance feed. Select the classification Balance Initialization for this element.

  2. Set up initial balance values in the tables

    PAY_BALANCE_BATCH_HEADERS

    PAY_BALANCE_BATCH_LINES

    For more information, see the technical essay: Balances in Oracle Payroll, Oracle HRMS Implementation Guide.

  3. In the Submit Requests window, select Initial Balance Upload.

  4. Run one or more of the four modes as appropriate:

    Validate: checks the details in the batch to be uploaded

    Transfer: creates the balances in the batch

    Undo transfer: reverses the effects of a transfer

    Purge: removes the batch from the batch tables

  5. Select the batch to be processed.

  6. Choose the Submit button.

  7. Continue to run the process for as many modes as you require.

Creating Balance Dimensions

If you need to add to the predefined balance dimensions, create your own using the Create Balance Dimension process. You can then associate your dimension with any balance on the system, user or predefined, using the Balance window.

You run this process from the Submit Requests window.

To create a balance dimension

  1. In the Name field, select Create Balance Dimension.

  2. In the Parameters window, enter a name for the dimension in the Balance Suffix field.

  3. Select a balance level for the dimension. Currently you can only create an assignment level dimension.

  4. Enter the start day and month for the dimension in the date format used at your site.

  5. Select a frequency for the dimension from the list of supported period types. The frequency you select governs the number of times the balance is reset to 0 in one year.

  6. Choose the Submit button.

Professional Body Membership

Professional Body Membership and Subscriptions

You can record information about membership of professional bodies and, using Oracle Payroll, deduct subscription dues for these bodies. You can store the standard subscription rates in a user defined table and override them for individual assignments.

Oracle Payroll creates automatically the elements, input values, balances, formula, and formula results for the deductions, based on information you enter in the Professional Body Processing window. It records information required for deduction processing in the Professional Body Information Element Extra Information Type.

After Oracle Payroll creates the element, you must link it and enter it for the appropriate assignments. You must also enter membership information for these assignments using the Qualifications window. The element entries are then processed using the normal payroll process.

Elements

The application creates the following element for your deduction:

Balances

The application creates the following balances:

Formula

The application creates a formula called <BASE NAME>_PROFESSIONAL_BODY_DEDUCTION, which returns the deduction amount to the element's pay value.

The main processing performed by the formula is as follows:

Setting Up Professional Body Subscriptions

Follow these step if you want to set up deductions for subscriptions to professional bodies.

To set up deductions for professional body subscriptions

  1. Set up a user defined subscriptions table for each professional body that you are recording. Create the table with one row and use the columns to store the membership categories.

    See: Setting Up User Tables, Columns and Rows, Oracle HRMS Configuring, Reporting and System Administration Guide

  2. Create an organization to represent the professional body and select the classification Professional Body Information. Also select the classification Payee Organization if you want to make third party payments to this body.

    See: Entering Organization Classifications, Oracle HRMS Enterprise and Workforce Management Guide

  3. Enter additional organization information for the Professional Body Information classification. Select the subscription rates table and review date for the subscriptions to this body.

    See: Entering Additional Information for a Professional Body, Oracle HRMS Enterrpise and Workforce Management Guide

  4. Enter information in the Professional Body Processing window.

    This creates the elements, input values, balances, formula, and formula results for the deduction.

    See: Creating a Professional Body Deduction, Oracle HRMS Compensation and Benefits Guide

  5. Link the element that was generated in the previous step.

    See: Defining Element Links

  6. Enter the subscription rates in the user defined table you created in step 1. The rates must be in pounds sterling.

    See: Entering Table Values, Oracle HRMS Configuring, Reporting and System Administration Guide

  7. Use the Qualifications window to enter Professional Membership information for your employees.

    See: Entering Qualifications, Oracle HRMS Workforce Sourcing, Deployment and Talent Management Guide

  8. If you want to pay the subscriptions as third party payments, use the Personal Payment Method window to select a third party payment method for each assignment. In the Payee region, select the professional body.

    See: Entering Payment Methods for an Employee Assignment, Oracle HRMS Workforce Sourcing, Deployment and Talent Management Guide

  9. Make element entries for your employees and process them.

    See: Making Manual Element Entries

Creating a Professional Body Deduction

Oracle Payroll creates automatically the element, input values, balances, formula, and formula results for a professional body deduction when you enter information in the Professional Body Processing window.

To create a professional body deduction

  1. Select the name of the professional body.

  2. Enter a name and reporting name for the element.

  3. Optionally enter a description of the element.

  4. Select if the element is recurring or nonrecurring.

    For example, you would select nonrecurring for a subscription that is paid once per year, and recurring for a deduction that is paid once each pay period.

  5. Check the Third Party Payment check box if you want to pay the deductions as third party payments to the professional body.

  6. Check the Override Amount box if you want to create an input value where you can enter an amount at assignment level that would override the normal contribution rate.

  7. Enter the name of the Professional Body Level Balance that is to be created. This balance is fed by all elements created for this professional body. Use the format X Overall Balance where X is the name of the professional body. If you have already created an element for this organization, you cannot enter another overall balance name.

  8. Save your work.

    The application creates the required elements, formula, balances, and formula results, according to the information you have entered. The Professional Body Information element extra information type holds the professional body name, balance, and two Yes/No indicators showing whether the subscription amount can be overridden and whether you are paying the subscription using third party payments.

    Warning: You would normally add extra information from the Element window. However, in this case the application enters this information automatically when you save details in the Professional Body Processing window. You must not change this information using the Element window.

    To stop users from entering the above extra information in the Element window, this EIT is not predefined as a viewable information type for the predefined responsibilities.

Union Deductions

Union Deductions

Oracle Payroll enables you to set up union deductions for your employees. There is an annual membership fee for each union that is paid on a periodic basis from members' net pay. The membership contribution rate varies between unions and is not necessarily increased every year.

Unions either have a contribution rate dependant on an employee's rate of pensionable pay or a flat contribution rate, although members have the option to make additional contributions towards local branch welfare funds. You create a user defined table to hold the union contribution rates (as flat rates or in bands based on pay). You can create rate types to specify which elements you use to define the rates of pay.

When the union issues revised contribution rates, the payroll run deducts the new amount from the employees' wages in the pay period that includes the date of the revision with the new rate applicable for the whole period.

Union subscription rates include a donation to a political fund. Unison members have the choice of contributing to either the Affiliated Political Fund (APF) or the General Political Fund. All other unions have just one political fund.

Oracle Payroll creates automatically the elements, input values, balances, formula, and formula results for the union deductions, based on information you enter in the Union Processing window. It records information required for union deduction processing in the Union Information Element Extra Information Type.

After Oracle Payroll creates the union element, you must link it and enter it for the appropriate assignments. The element entries are then processed using the normal payroll process.

Elements

The application creates the following elements for your deduction:

Balances

The application creates the following balances:

Formula

The main processing performed by the formula is as follows:

Setting Up Union Deductions

Follow these steps if you want to set up union deductions.

To set up union deductions for your employees

  1. Set up your pensionable pay rate type. (This step is required only if the union has a contribution rate that varies by pay rate.)

    You set up a rate type as a value for the lookup type PQP_RATE_TYPE. Then you select this rate type for the elements that you want to sum to calculate the pay rate. Select the rate type in the Rate Type Information EIT for the elements.

    See: Setting Up Historic Rates

  2. Set up the Union Fund Lists as lookup types.

    Note: The fund list name must start with PQP_UNION_FUNDS

    You enter one lookup code for each fund. For example:

    Code Meaning From
    APF APF Opt Out 01-Apr-1990
    GPF GPF Opt Out 01-Apr-1990
    ST Standard Unison 01-Apr-1990

    It is important that in this step you only set up a single code rather than separate monthly and weekly codes. This is because the monthly and weekly codes are automatically generated at step 7 from the single code that you enter here.

    See: Adding Lookup Types and Values, Oracle HRMS Configuring, Reporting and System Administration Guide

  3. Set up a new table and the rows in a user defined Union Rates table.

    The rows store the pay rate bands. For a flat rate table there is only one row, which covers all possible pay rates (such as 0-9,999,999).

    Select one of the following match types:

    Columns

    The table must have two columns for each fund to store weekly and monthly deduction amounts. The column headings must have the suffixes "weekly" and "monthly, but these are assigned automatically when you perform step 7.

    It is, therefore, important that you do not create any column headings in step 3.

    See: Setting Up User Tables, Columns and Rows, Oracle HRMS Configuring, Reporting and System Administration Guide

  4. Create an organization to represent the union and select the classification Bargaining Association.

    See: Entering Organization Classifications, Oracle HRMS Enterprise and Workforce Management Guide

  5. Enter Trade Union information.

    See: Entering Trade Union Information for a Bargaining Association, Oracle HRMS Enterprise and Workforce Management Guide

  6. Enter the rates information. Do this by selecting the rates table that holds the subscriptions for this union.

    See: Entering Rates Information for a Bargaining Association, Oracle HRMS Enterprise and Workforce Management Guide

  7. Enter information in the Union Processing window.

    This creates the elements, input values, balances, formula, and formula results for the deduction. It also creates the column headings for the user defined table.

    See: Creating a Union Element

  8. Enter the union rates in the user defined table you created in step 3.

    Enter the weekly and monthly deduction amounts as flat rates or associated with salary bands, depending on how you set up the table.

    See: Entering Table Values, Oracle HRMS Configuring, Reporting and System Administration Guide

  9. Link the following elements to your payroll:

    See: Defining Element Links

  10. Make element entries for your employees and process them.

    See: Entering a Union Element

Creating a Union Element

Oracle Payroll creates automatically the element, input values, balances, formula, and formula results for a union deduction when you enter union information in the Union Processing window.

To create a union element

  1. Select the name of the union.

  2. Enter a name and reporting name for the element.

  3. Optionally enter a description of the element.

  4. Select if the element is recurring or nonrecurring.

  5. Check the Override Amount box if you want to create an input value where you can enter an amount at assignment level that would override the normal contribution rate.

  6. Check the Tax Relief (Reporting only) check box if you can claim tax relief on a deduction made to the union. This creates:

  7. Check the Supplementary Levy box if employees can pay a local levy, supplementary to the normal contribution.

  8. Enter the name of the balance to be created that is fed by all elements created for this union. Use the format X Overall Balance where X is the name of the union. If you have already created an element for this union, you cannot enter another overall balance name.

  9. Select a rate type if the union deduction varies by a rate of pay.

  10. Select the Fund List name.

  11. Save your work.

    The application creates the required elements, formula, balances, and formula results, according to the information you have entered. For the base element, the Union Information element extra information type holds the union name and rate type.

    Warning: You would normally add extra information from the Element window. However, in this case the application enters this information automatically when you save union details in the Union Processing window. If you add information from the Element window, you receive an error when you run the union deductions report.

    To stop users from entering the above extra information in the Element window, this EIT is not predefined as a viewable information type for the predefined responsibilities.

Entering a Union Element

Use the Element Entries window to enter a Union element for an assignment.

To enter a union element

  1. Change your effective date to the correct start date.

  2. Select the Union element in the Element Name field.

  3. Check the Override check box to create an entry that overrides all other entries of this element in the current period. You cannot create an override entry if one already exists, or if any of the entries of this element have been adjusted.

  4. Check the Additional check box if you want to create a one-time entry of a recurring element.

    An Additional entry is valid only for the current pay period, shown in the Effective Dates fields.

    You can only check Additional if:

  5. Choose the Entry Values button to open the Entry Values window.

  6. Enter values in the Entry Values fields as follows:

  7. Save your work.

Running the Union Deductions Report

This report shows total deductions paid to a union, plus deductions per employee, and a list of employees for whom the full deduction could not be taken due to insufficient pay.

You run the report in the Submit Requests window.

To run the Union Deductions report

  1. Select the report name in the name field. Then enter the parameters field to open the Parameters window.

  2. Select the Union name from the list of values. This is a required parameter.

  3. Specify the payroll for which you want to run the report. If you do not enter a payroll name, the report will process every employee who is a member of the union.

  4. Enter the payroll start date and end date.

  5. Choose the Submit button.

Third Party Payments

Third Party Payments

Oracle Payroll enables you to make both single and recurring deductions from worker salary for third party payments, and to specify either corporate bodies or individuals as payees. The deductions you can make include third party payments and union dues.

You need to define payment methods for third party payments and enter these for your payrolls.

How you pay third parties is determined by the Third Party Payment check box on the Element window when you define the deduction. If this check box is unchecked, you must pay third parties outside Oracle Payroll through Accounts Payable. If it is checked, you can pay third parties through Oracle Payroll, using a third party payment method that you have defined.

Third Party Payments Overview

Third party payments is also known as Wage Attachments, Wage Garnishments, and Court Orders in different localizations, and your legislation may already have predefined elements to support each of these types of deduction.

Third party payments are deductions from earnings incurred by court debts or fines. For example, payments of maintenance, child support or other legally incurred obligations. Oracle Payroll enables you to process these deductions from worker wages. Third party payments in Oracle payroll are rule-driven, so you can tailor them to meet your business needs.

Oracle Payroll provides a robust answer to administering third party payments, a type of involuntary deduction. Like other features in Oracle HRMS, third party payments are rule-driven so that you can tailor the software to fit your business requirements.

Oracle Payroll features for third party payments enable you to:

Handling third party payments

Oracle Payroll handles third party payments using:

Legislative Differences

Depending on the country in which you operate, third party payments are either provided for you, along with their associated elements, balances, balance feeds and formulas, or you can create your own. To create your own, enter some of the information you require into a template, and let Oracle Payroll generate the elements, balances and balance feeds for you. You create North American third party payments using this second method.

You can only use one of the two methods, depending on your legislation, and not a mixture of both.

Elements

Each third party payment is represented by one element. For example, the third party payment of Court Order is represented by the element called Court Order.

Once you have created a third party payment, or selected one of the third party payments provided, you record all changes by entering input values for the third party payment element.

Third Party Payment Processing Sequence

You determine when to deduct each third party payment from a worker's earnings using element classifications and processing sequences.

For example, you may need to ensure that Oracle Payroll always processes court orders before other deduction types. You may also need to prioritize the court orders further to ensure that Oracle Payroll always processes child support deductions before education loans. In this example, these third party payments belong to an element classification with a low-numbered processing sequence. This ensures that they are processed before all other deductions.

Then, to ensure that Oracle Payroll always processes your child support payments before education loans, you could determine a secondary processing sequence. You do this in the Element Entries window.

If you don't specify a secondary processing sequence, third party payments are processed in date order.

During payroll processing, the appropriate formula calculates the deduction from the worker's wages, and considers the correct percentage of the balance which stores the worker's net income.

Korea users only: While processing your third party payment, use only the KR Monthly Payroll, KR Bonus Payroll, and KR Separation Pay Payroll processes. If you use QuickPay Run, the third party payment will not be properly processed because you cannot specify its payout date.

Formulas

You can use the predefined formulas to determine how third party payments are processed in your organization. For example you can do the following:

See: Formulas and Payroll Run Results

Balances

Oracle Payroll uses balances to record the amount of third party payments paid or amount remaining. Depending on your legislation, Oracle Payroll either provides the balances and balance feeds that you need for predefined third party payment elements, or it generates them automatically.

The amount of court order debt paid at any time is held in an Inception-to-date (ITD) balance. For those elements that have multiple occurrences, this balance exists at element level, reflecting the need to keep track of how much has been paid for each separate occurrence. Otherwise the balance exists at assignment level.

The amount of the debt still outstanding is the difference between the amount in the ITD balance dimension and the Initial Debt input value.

For Assignment level ITD balance dimensions, you must ensure that, once the total debt has been repaid and the element has been given an end date for processing, that the balance is cleared back to 0.00. If you do not do this and a new element entry is given to the worker for the same court order type element, the formula finds the 'old' balance and the element is not processed correctly.

The attachable pay balances Run and Period balance are referenced within the formulas because of the possibility of there being more than one run in a period.

How Oracle Payroll Manages Deductions

You enter the initial debt. The system then manages the deductions automatically and ends the process when the debt is cleared. If you do not enter a value for the debt the system continues to process the deductions each pay period as ongoing maintenance payments.

Protected Earnings

Local legislation determines the amount and type of earnings from which third party payments can be deducted. Typically, there is a minimum amount of earnings below which you cannot deduct third party payments. Similarly, there is a proportion of a worker's earnings that are considered liable to third party payment deductions.

Managing Different Third Party Payments

You can use Oracle Payroll to manage both kinds of third party payment:

Ending Third Party Payments

Depending on the third party payment, and whether the deduction is ongoing or a diminishing balance, you can set a deduction end date. Alternatively you can set up the deduction so that Oracle Payroll stops processing it when the full balance has been paid.

You can also override these settings, for example, if you want to stop maintenance payments immediately before reaching the end date.

Preparing Third Party Payment Information at the End of Employment

If a worker's third party payment is still being processed after the worker has left the organization, then you must manually enter deposition-related information into the Deposition Info predefined element. This element is for informational purposes only. Your company will request the court that has mandated the third party payment to stop the process, and the court will be sent the information contained in the element.

Third Party Payment Deductions

The third party payments that you can process depend on the specific third party payments that apply to your legislation. Examples of third party payments include child support payments, educational loans, taxes to local authorities, alimony, and bankruptcy orders.

The following table lists the deductions you can make using Oracle Payroll.

Third Party Payment Legislation
Credit Debt/Garnishments US
Bankruptcy Order US
Federal Tax Levy (State and Local Tax Levies are not supported by Oracle Payroll) US
Federal DCIA Order US
Spousal Support Order, Child Support Order, and Alimony US
Educational Loan US
Employee Requested Payment US
Court Orders and Arrestments UK
Council Tax Attachments UK
Court Orders France
Maintenance Orders Ireland
Variation Orders Ireland
Interim Orders Ireland
Compensation Orders Ireland
Social Welfare Orders Ireland

Court Orders and Arrestments

Oracle Payroll enables employers to meet the statutory requirement to deduct sums from the earnings of employees who have incurred court debts or fines. In the UK, these attachments to wages are known as Court Orders and Arrestments. When you are completing these wage attachment procedures you may also need to refer to the following:

Court Orders and Arrestments Legislation

Court orders for attachments of earnings are served by courts on employers requiring them to deduct sums from the earnings of employees who have incurred court debts or fines. The employer has to administer the collection of the debt and ensure that it is passed to the court, Agency or local authority issuing the order.

An Attachment of Earnings order is made under the Attachment of Earnings Act 1971. The procedure used under this legislation is largely followed in other similar legislation covering the collection of debts under Community Charge, Council Tax and Child Support Act legislation. Attachment of Earnings orders are given different terminology in Scotland and are administered under the Debtors (Scotland) Act 1987. The following table lists the principal UK legislation and names of orders.

Northern Ireland legislation, not listed in the table, administers the same orders as under the Attachment of Earnings Act and the Child Support Act, but there is no liability in Northern Ireland for Council Tax or Community Tax.

Legislation Name of Order Acronym
Attachment of Earnings Act, 1971 Attachment of Earnings AEO
Debtors (Scotland) Act, 1987 Earnings Arrestment EAS
Current Maintenance Arrestment CMA
Conjoined Arrestment CAO
Community Charges (Administration and Enforcement) Regulations, 1989 Community Charge Attachment of Earnings CCAEO
Child Support Act, 1991 Deduction from Earnings DEO
Council Tax (Administration and Enforcement) Regulations, 1992 Council Tax Attachment of Earnings CTO

Court order legislation is complex. Full details for administering the system are set out in the Employers Handbook on Attachment Orders available on request from the Lord Chancellor's Department, Debt and Enforcement Branch, 105 Victoria Street, London SW1E 6QT.

Court Orders/Arrestments in Oracle Payroll

Oracle Payroll provides all the elements, balances and formulas necessary for you to correctly administer court orders and arrestments in the United Kingdom.

Element Used For Balance Feeds
Court Order CTO, AEO, CCAEO, CCAEO_PRE_APRIL, DEO Court Order_ELEMENT_ITD, Court Order_ELEMENT_PTD
Court Order Arrears Holds deduction arrears and protected pay arrears for Priority AEOs and DEOs. You do not make entries of this element for employees. It is used in the payroll run. Court Order Arrears Deduction_ELEMENT_ITD, Court Order Arrears Protected Pay_ELEMENT_ITD
Court Order Non Priority Non priority AEO Court Order Non Priority_ELEMENT_ITD, Court Order Non Priority_ELEMENT_PTD
EAS Scotland Earnings Arrestments issued in Scotland EAS Scotland_ASG_ITD
EAS Scotland Payments Holds the payment for Earnings Arrestments. You may use it for EAS balance adjustments, for example, after the EAS has been closed or replaced by a CAO. EAS Scotland Payments_ASG_ITD
CMA Scotland Current Maintenance Arrestments issued in Scotland CMA Scotland_ASG_PROC_PTD
CAO Scotland Conjoined Arrestments issued in Scotland CAO Scotland_ASG_PROC_PTD
CAO Scotland Payments Holds the CMA and EAS components of the CAO payment. You may use it for EAS balance adjustments, for example, after the CAO has been closed. CAO Scotland Payments EAS_ASG_ITD, CAO Scotland Payments CMA_ASG_PROC_PTD
Fee All court orders Fee_ELEMENT_PTD

Non-Third Party Payment Court Orders

Users who do not want to make court order payments through Oracle Payroll can use nonpayment versions of the court order elements. These elements have the prefix NTPP (non-third party payment).

For these elements, the system keeps full track of debts and payments, but you make payment through some external means such as Accounts Payable. The list of NTPP elements is as follows:

Court Order and Arrestment Balances

The amount of court order debt paid at any time is held in an Inception-to-Date (ITD) balance. For those elements that can have multiple occurrences, this balance exists at element level, reflecting the need to keep track of how much has been paid for each separate occurrence. Otherwise the balance exists at assignment level.

The amount of the debt still outstanding is the difference between the amount in the ITD balance dimension and the Initial Debt input value.

For assignment level ITD balance dimensions, care must be taken, once the total debt has been repaid and the element has been given an end date for processing, that the balance is cleared back to 0.00. If this is not done and a new element entry is given to the employee for the same court order type element, the formula finds the 'old' balance and the element is not processed correctly.

The attachable pay balances have their RUN and PERIOD balance referenced within the formulas because of the possibility of there being more than one run in a period.

How Oracle Payroll Manages Deductions

You enter the initial debt. The system then manages the deductions automatically and ends the process when the debt is cleared. If you do not enter a value for the debt the system continues to process the deductions each pay period as ongoing maintenance payments.

Oracle Payroll calculates each deduction from the initial debt and from pay band tables. The system adjusts deductions to the level of net pay in each period, taking any net pay variations into account. The system stops the element entry automatically when the total debt has been repaid. Each time the element is processed a payroll message is issued giving deduction details, and these are notified to the employee through his or her pay advice.

Attachment of Earnings Orders

The procedure for administering an AEO applies broadly to the other categories of court orders.

The following terms are used in the order:

Attachable earnings include:

Non-attachable earnings include the following:

An AEO states to the employer the amount to be deducted and the amount of the protected earnings, based on the employee's normal payment frequency.

On receipt of an AEO the employer is required to deduct the specified amount from the employee's attachable earnings and to forward the amounts deducted to the issuing court, until one of the following takes place:

Multiple Assignments

CTO and CCAEO orders can be calculated based on aggregated earnings where there are multiple assignments that have the same pay frequency and payment date. You must link the element to each eligible assignment and it must have the same reference.

Multiple Payments in a Period

Note that:

Priority and Non-Priority Orders

All AEOs are designated priority or non-priority, and the order's category can determine the way it is processed. Priority orders have processing priority over non-priority ones. All priority AEOs issued against an employee are to be processed first and in date order. After these, non priority AEOs are to be processed, again in date order.

Priority AEOs

For these, the attachable earnings are reduced by the protected earnings, and if the remainder is sufficient, the full deduction is taken. If not, the remainder is deducted, and the shortfall is added to an arrears balance for recovery in subsequent runs if possible.

If there are insufficient attachable earnings to cover the protected earnings, then the shortfall is added to an arrears balance. In addition, the full deduction amount is added to an arrears balance. Both will be recovered in subsequent runs if possible.

Non Priority AEOs

These are processed in the same way as Priority AEOs except that there is no arrears balance for deductions. If, after allowing for protected earnings, the employee has insufficient attachable earnings in any pay period from which to make either a normal or partial deduction, the amount outstanding is not carried forward against future earnings. However, the full debt remains to be paid over a longer time scale.

Processing Priority for Court Orders

When deductions are taken from employees for more than one court order at a time, the order of processing must be as follows:

1. For orders issued before 1 April 1993:

2. For orders issued after 31 March 1993, the following should be administered in order of receipt date:

3. In Scotland the order is either:

Community Charge Attachment of Earnings Orders

CCAEOs are issued by local authorities. The legislation concerning the method of recovery was amended on 1 April 1992.

The normal deduction is determined by reference to bands of attachable earnings and is either a fixed amount if the order was issued before 1 April 1992, or a percentage of attachable earnings if issued after that date.

Attachable Earnings

Authorized pension contributions should not be deducted for orders issued before 1 April 1992.

Multiple payments in a period

For orders made before 1 April 1992 holiday pay paid in advance is deemed as all attachable in one period. For orders made after that date the amount to be deducted is based on the current period's earnings and then the holiday period's earnings. Supplementary payments in the same period have a deduction rate of 20% applied.

Council Tax Attachment of Earnings Orders

CTOs are used for the recovery of Council Tax using the same procedures as those used for CCAEOs issued after 1 April 1992.

Multiple payments in a period

The amount to be deducted is based on the current period's earnings and then the holiday period's earnings. Supplementary payments in the same period have a deduction rate of 20% applied.

Deductions from Earnings Orders

DEOs are used for the collection of child support maintenance payments under the authority of the Child Support Agency. These orders are administered in the same way as AEOs.

Scottish Arrestments

Scottish court orders are called arrestments, and there are three kinds: Earnings Arrestments, Current Maintenance Arrestments and Conjoined Arrestment Orders. Oracle Payroll provides elements for all these arrestments.

Earnings Arrestments

The amount to be recovered each processing period is based on bands of attachable earnings and a fixed amount. Only one EAS can be in operation for an employee at any one time. If you receive a second EAS for the employee, you must return it to the issuing authority, and give details of the existing order.

Multiple Assignments

EAS can be calculated based on aggregated earnings where there are multiple assignments that have the same pay frequency and payment date. You must link the element to each eligible assignment and it must have the same reference.

Multiple Payments in a Period

All earnings in a period whether or not they contain holiday pay paid in advance are attachable. Supplementary payments have a deduction rate of 20% applied.

Current Maintenance Arrestments

CMAs are used to collect maintenance. The employer is informed of the daily amount of deduction, the daily protected earnings applicable under the order, and an indication of the employee's entitlement to have deductions reduced by the equivalent of UK basic rate income tax. The employer is required to divide the amount of attachable earnings by the number of calendar days since the last normal payment, and then use that daily figure to calculate the amount of deduction.

Only one CMA can be in operation for an employee at any one time. If you receive a second CMA for an employee, you must return it to the issuing authority, and inform them of the details of the existing order. Note, however, that a single CMA may coexist with a single EAS for the same employee. The EAS must be processed first, being of higher priority.

Multiple Payments in a Period

Supplementary payments in a period may be used to make up any shortfall between the expected deduction for the period and the actual period-to-date deduction.

Conjoined Arrestment Orders are issued where more than one EAS and/or more than one CMA are to be operated. These orders are administered in the same manner as EASes, except that deductions for CAOs are payable to the Sheriff Court instead of the named creditor. Only one CAO at a time can be in operation for an employee, and while it is in operation no single EAS or CMA may be administered.

Supplementary payments are treated as their single order equivalents.

Making Third Party Payments

Use this process to make third party payments through Oracle Payroll. Third party payments include

In Australia, you can also use this process to set up employer superannuation contributions. After payroll processing takes place, the pay value of the deductions element is paid according to the third party payments method you selected.

To make third party deductions from individual assignments

  1. Create the organization or person to receive the third party payment.

    You create payee organizations in the Organization window, selecting the Payee Organization classification.

    See: Creating an Organization, Oracle HRMS Enterprise and Workforce Management Guide

    You create individual payees as contacts of the person making the deduction. In the Contacts window, check the Payments Recipient check box when you create the payee.

    See: Entering Next of Kin and Other Contacts, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide

  2. Link the third party element to your payroll.

  3. In the Personal Payment Method window, select a third party payment method for the assignment. In the Payee region, select the payee you have created.

    See: Entering Payment Methods for an Employee Assignment, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide

  4. Create an element entry for the deduction.

    See: Entering Third Party Payment Information

    In the Entry Values window, you enter details of payment, payee and payment method. Required entry information varies according to the kind of deduction you are making.

When you have completed these setup steps you can run a payroll to process the third party payment that you have just defined.

Entering Third Party Payment Information

Information about each Third Party Payment that must be discharged against your worker is stored in a separate third party payment element.

Third party payments can include Wage Attachments, Wage Garnishments, and Court Orders and your legislation may already have predefined elements to support each of these types of deduction.

Use the Element Entries window to assign your worker a Third Party Payment element.

To enter Third Party Payment for a worker

  1. Query your employee in the People window, and set your effective date to the day on which the third party payment should commence for your worker.

  2. In the Element Entries window, select the third party payments element .

  3. Enter costing information in the Cost Allocation KF window or choose Cancel.

  4. Choose the Entry Values button to open the Entry Values window.

  5. Enter the unique attachment sequence number of the third party payment.

    You must supply a unique attachment sequence number for your third party payment; otherwise, your payroll run will fail. After your payroll run is successfully processed, in the Result Values window, you can identify the Results element created for your third party payment by its attachment sequence number.

  6. Enter the time you received the third party payment and the unique case number assigned by the court administering the third party payment.

  7. Select the third party payment's processing type.

  8. Enter the third party payment's sub-processing type and administering court's name. The sub-processing type is used by the system only for information and is not considered during calculation or administration of the third party payment.

  9. Enter the principal base and court fee base for the third party payment.

  10. If the third party payment has an interest base, enter it. Enter the start and end dates for the interest base. The start and end dates for a third party payment that has an interest base are only for information and have no bearing on administration or calculation.

  11. Indicate whether or not a judicial decision statement of the obligation-release processing type has been received for the third party payment and the date of such receipt. To set the Obligation Release field to Yes, you must update the field.

    When the third party payment's processing type changes to obligation release from any other processing type, you must select Yes in the Obligation Release field. You do not need to assign a new third party payments element to the employee

  12. Select the third party creditor for the court order from the list of values in the Payee Details field.

  13. Save your work.

To enter interest bands

If the third party payment has interest bands, then you need to specify them in the Further Element Entry Information window:

  1. Click in the Further Entry Information field to open the Further Element Entry Information window.

  2. Specify the start date, end date, base, and rate of each interest band. You can specify a maximum of five interest bands. A interest band is invalid if it does not have a start date. If an end date is not specified, the system uses the next applicable payout date.

  3. Save your work.

To change processing type from provisional attachment to actual seizure and collection, actual all attachment

Some localizations enable you to specify whether a third party payment is a provisional attachment, an actual seizure and collection, or an actual all attachment.

When the processing type of the third party payment changes from provisional attachment to actual seizure and collection or actual all attachment, you must assign a new third party payments element to the employee in the payroll-processing period in which the processing type changes.

  1. In the Element Entries window, enter information pertaining to the new judicial decision statement.

  2. If the third party payment uses an interest base, enter the same values for the principal base, court fee base, and interest base that you entered for the old third party payments element.

  3. If the third party payment uses interest bands, enter the same values for the principal base and court fee base that you entered for the old third party payments element. While setting up interest bands, begin with the interest band within which the next payroll-processing date will fall. The start date of this band should be the last payout date for the old third party payments element.

  4. Select the case number for the old judicial decision statement for the third party payment in the Further Element Entry Information window.

  5. Save your work.

Managing Wage Attachments

Entering Court Order Elements

The elements Court Order and Court Order Non Priority are used for United Kingdom court orders, excluding Scotland. Court Order Non Priority is used only for entering non-priority AEOs. Court Order is used for entering priority AEOs and other court orders.

Use the Element Entries window to enter these elements for an employee assignment.

To enter court order elements:

  1. Open the Element Entries window.

  2. Complete the details for the type of court order that you want to enter:

Entering a Priority Court Order

To enter a priority AEO, CTO, CCAEO or DEO for an employee:

  1. Set your effective date to the day you received the order, and query the employee assignment.

  2. In the Element Entries window, select the Court Order element.

  3. Enter cost codes and a reason for the entry if these fields are set up on your system. Choose the Entry Values button.

  4. In the Entry Values window, select the type of order.

  5. Do one of the following:

  6. Enter the employer's administration fee for the order.

    The maximum fee is 1.00 pound. This is chargeable once each pay period that a court order is processed.

  7. Enter a Reference, such as the Case Number, to help you identify this order in messages and reports.

  8. In the Issued By field, enter the name of the issuing authority.

  9. In the Payee Details field, select the details of the person or organization to whom the order is payable.

  10. If required, enter the sub-priority number for the entry in the unlabeled field next to the Processing Priority field.

    If you make more than one entry of a court order element for the same employee, the sub-priority number enables you to determine the order of processing for the different entries.

Entering a Non-Priority Court Order

You enter a non-priority court order in the Element Entries window.

To enter a non priority AEO for an employee:

  1. Select the element Court Order Non Priority,.

  2. Follow the same procedure as for entering a priority AEO.

    There is no Type field in the Entry Values window as there is only one type of non priority order.

Entering Elements for Scottish Arrestments

You enter Scottish arrestments elements for employee assignments in the Element Entries window. The following legislative restrictions apply to these entries:

To enter an EAS, CMA or CAO for an employee

  1. Set your effective date to the day you received the order.

  2. In the Element Entries window, select the EAS Scotland, CMA Scotland or CAO Scotland element.

  3. Enter cost codes and a reason for the entry if these fields are set up on your system. Choose the Entry Values button.

  4. Carry out one of the following sets of tasks:

    For EAS

    For CMA

    For CAO

    1. Enter the amount of any administration fee you are charging as an employer.

      The maximum fee is 50 pence. This is chargeable once each pay period that a court order is processed.

    2. Enter a reference, such as the case number, to help you identify this order in messages and reports.

    3. Enter the name of the issuing authority in the Issued By field.

    4. Enter the details of the person or organization to whom the order is payable in the Payee Details field.

      Caution: A CAO is sometimes issued to supersede an EAS currently in operation for an employee. When this happens, ensure that the CAO Scotland Payments EAS_ASG_ITD balance dimension is adjusted to the value for the amount already deducted under the original order, that is, the value of EAS Scotland Payments_ASG_ITD. If this is not done, you could deduct more from the employee than is necessary.

Closing Scottish Arrestments

There are different procedures for closing different arrestments. Use the Element Entries window to close an arrestment.

To close an Earnings Arrestment:

  1. See: Closing a Scottish Earnings Arrestment

    EAS Scotland element entries stop automatically when the total deductions equal the initial debt. In addition, you can manually stop these elements before the debt has been fully paid. It is mandatory to stop a current EAS if a CAO is made against the same employee.

    Note: When an EAS Scotland entry is stopped, either manually or automatically, you should adjust to 0 the EAS Scotland Payments_ASG_ITD balance dimension for the employee assignment. If this is not done, any subsequent EAS Scotland element for the same employee will appear to be partly or fully paid.

To close Current Maintenance Arrestments:

CMA Scotland element entries are not stopped automatically. Two manual procedures are available for closing them: closure on the last day of the pay period, and closure partway through a period. No balance adjustments are required with CMA closures.

  1. See: Closing a Scottish Arrestment for Current Maintenance

To close a Conjoined Arrestment:

CAO Scotland element entries cannot be automatically stopped. Three manual procedures are available for closing different combinations of conjoined arrestments.

  1. See: Closing a Scottish Conjoined Arrestment

Closing a Scottish Earnings Arrestment

Use the Element Entries window to close a Scottish Earnings Arrestment.

To manually close an EAS Scotland element entry

  1. Set your effective date to the day the order is to end.

  2. In the Element Entries window, select the EAS Scotland element.

  3. Choose Edit - Delete Record to delete the element entry. Choose the End Date option at the prompt.

  4. Save your work.

  5. Set your effective date to the day after the element has ended.

  6. In the Employee Assignment Processes window, select the appropriate payroll process entry and choose the Balances button to query the EAS Scotland Payments_ASG_ITD balance dimension.

  7. In the Adjust Balance window, adjust to 0 the EAS Scotland Payments_ASG_ITD balance dimension by applying an appropriate contra-entry; e.g. if the value of EAS Scotland Payments_ASG_ITD is 123.59, apply a contra-entry of -123.59.

Closing a Scottish Arrestment for Current Maintenance

Use the Element Entries window to close a Scottish Arrestment for current maintenance.

To manually close a CMA Scotland element entry on the last day of a pay period:

  1. Follow the procedure for manually closing an EAS Scotland element entry, steps 1-4.

  2. In the Element Entries window, select the CMA Scotland element.

To manually close a CMA Scotland element entry partway through a pay period:

  1. Set your effective date to the day after the order is to end.

  2. In the Element Entries window, select the CMA Scotland element, and choose the Entry Values button.

  3. In the Entry Values window, enter a daily debt value of 0. Choose the Update button when prompted.

  4. Enter the original Daily Debt value in the Old Daily Debt field.

  5. In the Old Debt End Date field, enter the date the CMA is to end.

  6. Close the Entry Values window.

    The CMA Scotland element processes finally in the payroll run for the period in which you enter the Old Debt End Date, and is then automatically stopped.

    Note: You can also use this method to alter the Daily Debt to some other non-zero rate if required. In this case the element will not be automatically stopped.

Closing a Scottish Conjoined Arrestment

Use the Element Entries window to close a Scottish conjoined arrestment.

To manually close a CAO Scotland element comprising a CMA portion only:

  1. In the Element Entries window, select the CAO Scotland element, and follow the procedure for closing a CMA Scotland element entry. See Closing a Scottish Arrestment for Current Maintenance

  2. Set your effective date to the last day of the payroll period for which you have entered the CMA Old Debt End Date.

  3. In the Element Entries window, select the CAO Scotland element.

  4. Choose Edit - Delete Record to delete the element entry. Choose the End Date option at the prompt.

To manually close a CAO Scotland element comprising an EAS portion only:

  1. In the Element Entries window, select the CAO Scotland element, and follow the procedure for closing an EAS Scotland element entry. See Closing a Scottish Earnings Arrestment

  2. In the Employee Assignment Processes window, select the appropriate payroll process entry (i.e. the last for the element) and choose the Balances button to query the CAO Scotland Payments EAS_ASG_ITD balance dimension.

  3. In the Adjust Balance window, adjust to 0 the CAO Scotland Payments_EAS_ASG_ITD balance dimension by applying an appropriate contra-entry; e.g. if the value of CAO Scotland Payments EAS_ASG_ITD is 123.59, apply a contra-entry of -123.59.

To manually close a CAO Scotland element comprising an EAS and a CMA portion:

  1. Follow the closure procedure for a CMA-only CAO, above.

  2. Follow the balance clearing procedure for an EAS-only CAO, above.

    If the CAO is to end on the last day of a pay period, it may be manually stopped without the need to make any date-effective changes, but you must still clear the CAO Scotland Payments EAS_ASG_ITD.

  3. Reset to 0 the CAO Scotland Payments EAS_ASG_ITD balance dimension for the employee assignment once the entry has been stopped and the payroll run has taken place.

    If this is not done, any subsequent CAO Scotland element for the same employee that has an EAS portion will appear to have already partly or even fully paid the EAS portion.

    Note: You may use the method described above to alter the CMA Daily Debt to some other value, or to adjust the EAS Initial Debt. If you alter the EAS Initial Debt, however, you must also enter old and new CMA Daily Debt values, even if the daily debt is not actually changing. Furthermore, if you are reducing the EAS Initial Debt, you must ensure that the CAO Scotland Payments_EAS_ASG_ITD balance dimension value is not larger than the new EAS initial debt. If it is, a balance adjustment will be required to set the ITD balance to the new EAS Initial Debt input value.

Viewing Court Order and Arrestment Run Results

Use the Employee Assignment Processes window to view the results of court order and arrestment calculations when payroll processing is complete.

To view the results of court order and arrestment processing:

  1. Select the process that you want to view.

  2. Choose the Run Results button to open the Run Results window.

Historic Rates

Historic Rates

Historic rates is a function that retrieves a datetracked money value and recalculates it according to different time-dimensions (converting a daily wage to hourly). Historic rates is primarily for use in FastFormulas. You can use it to determine employee payments at the rate that existed when the work was done, rather than at the current rate. For example: If you pay your employees in arrears, you can calculate the value of the arrears payment.

Historic rates apply to notional rates only and not to actual rates

An employee may earn $50 an hour. Assuming a 40 hour work week, their notional rate would be $2000 a week. However, that employee might have only worked 10 hours during a particular week. Therefore, their actual rate for that week would be $500.

Historic rates are the values of a specific element or combination of elements, based on a specified time dimension, at a specified date. You can vary the rate according to different factors, such as:

Rate Type Information

For most rate calculations, a single element provides the pay rate. However, some rate calculations are the sum of multiple elements. For example: A holiday rate could be basic pay (held as a progression point) plus shift allowance (an input value) plus bonus (a global value). A rate type is a grouping of elements that comprise a single pay rate.

Different rate types can use the same element. For example: A rate type for holiday and another for sickness can both use the same basic pay element.

Use the Historic Rate - Rate Type element EIT to store the rate type name and description against each element. You create additional rate types by adding values to the lookup type PQP_RATE_TYPE.

Element and Contract Attribution

To calculate pay using historic rates, use the GET_HISTORIC_RATE function in your payroll formula. This function returns the rate. The parameters for the function are:

For sample formulas using this function, see: Sample Rates History Formula, Oracle HRMS FastFormula User Guide

The function uses attribution at two levels to calculate the correct values:

Note: The Contract level is available only if your localization has enabled it.

Element Attribution Information

Use the Historic Rate - Element Attribution (an element EIT) to store the following information against each element that has a historic rate:

For example, assume an assignment has an element entry for a Salary element and the element has the following attribution:

Time dimension = Hourly, Source = Grade Rate, Qualifier = Grade Rate 1

The function can retrieve the salary from Grade Rate 1 at any time and convert the time dimension from hours to annual or another dimension.

If you store rates for this payment using more than one grade rate or scale rate, you can use wildcards to enable you to select the latest value in the Qualifier field. For example: If the rate for salary can be held in Sal Scale Rate 1 or Sal Scale Rate 2, you can make the wildcard entry Sal Scale Rate % in the Qualifier field. The historic rates function then retrieves the value with the latest effective date.

Contract Table

The Contract Table is available only to those localizations that have enabled it. The structure of this table is defined by the localization. The user must specify the values.

Mexico only: This table is defined and maintained by the localization. It is not available to users.

Use the PQP_CONTRACT_TYPES predefined user-defined table to store the following information about your employee contract details:

Value Definition
Annual Hours Number of contract annual hours. Use this figure in the conversion of the derived rate to an output time dimension of "H" (Hourly Rate). Also use Annual Hours as a required figure when calculating Full Time Equivalent (FTE).
Days Divisor Number of contract days in a year. This divisor is normally 365. Use it in the conversion of the derived rate to an output time dimension of "D" (Daily Rate).
Period Divisor Number of periods per year used to calculate an output time dimension of "P" (Periodic Rate). Use a divisor that corresponds to the working hours shown on the Assignment window. For example: Weekly working hours have 52 as the Period Divisor. Also use Period Divisor as a required figure when calculating Full Time Equivalent (FTE).
Weekly Payroll Divisor Number of periods per year, such as 52. Use the weekly payroll divisor to convert a periodic value into an annual value when Periodic - Payroll Frequency is the time dimension for the element, and the payroll is weekly or bi-weekly.
Monthly Payroll Divisor Number of periods per year, such as 12. You use the monthly payroll divisor to convert a periodic value into an annual value when you select Periodic - Payroll Frequency as the time dimension for the element and the employee has a payroll frequency of Calendar Month, Lunar Month, Bi-Month, Quarter, Semi-Year, or Year.

When you have entered the required information to the PQP_CONTRACT_TYPES table, you can also add the following:

Value Definition
Overtime Annual Hours Number of annual hours used to calculate an output time dimension of "O" (Overtime Hourly Rate).
Annual Term Time Hours Calculates the adjustment value for the derived rate. If you enter a value for this column, and for the Annual Hours column, this adjusts the derived rate by a factor of Annual Term time Hours divided by Annual Hours.
Employment History Factor Value the function uses to adjust the historic rate for length of service. There are five bands within this category. For each of band you can define the following:
  • Service History Band Lower Limit: Minimum number of years service required to qualify for this adjustment factor.

  • Service History Band Upper Limit: Maximum number of years applicable for this adjustment factor.

  • Service History Band Adjustment Factor (%): Percentage factor by which the function increments the derived rate.


The historic rates function uses this information about each contract type to convert values held for one time dimension to another dimension. For example: If a rate is held hourly and needs to be returned as a daily rate, the function calculates an annual value by multiplying the rate by Annual Hours, then divides this by the Days Divisor.

Time Dimensions

Time dimensions are closely tied to contracts. If you have a time dimension, you must use contract types. If you are doing a conversion between two time dimensions, you must refer to a contract.

You define source time dimensions in the PQP_TIME_DIMENSIONS extensible lookup type. Whenever you add a new dimension to this lookup, you must also make a corresponding entry in the PQP_TIME_DIMENSION_FACTORS lookup type. This corresponding entry ensures that your output time dimensions map correctly to the annualization factor in the PQP_CONTRACT_TYPE user table.

PQP_TIME_DIMENSIONS
Code Meaning Description
A Annual Annual
D Daily Daily
H Hourly Hourly
P Periodic Periodic
PAY Periodic - Payroll Frequency Periodic - Payroll Frequency
PQP_TIME_DIMENSION_FACTORS
Code Meaning Description
A Reserved Per Annum Frequency Annual
D DAYS DIVISOR Daily
H ANNUAL HOURS Hourly
O ANNUAL OVERTIME Overtime Hourly
P PERIOD DIVISOR Periodic - Contract Period
PAY Reserved Pay Period Frequency Periodic - Pay Period Frequency.

The GET_HISTORIC_RATE function converts the element rate into an annual rate before converting to the given output time dimension. Therefore, not all output time dimensions need a corresponding source time dimension. For example, you can retrieve the overtime hourly rate (time dimension "O") without defining a rate with a source frequency of Overtime Hourly.

See: Setting Up Custom Time Dimensions for Historic Rates

Historic Rates Extra Information Types

Use the Historic Rate - Element Attribution element EIT to store the following information against each element that has a historic rate:

Value Description
Time-Dimension Specifies if the value is an annual, periodic, daily, or hourly figure. If you select Periodic, the rates history function multiplies the value by the period divisor held on the Contract Table to convert it to an annual value. If you select Periodic - Payroll Frequency, the rates history function multiples the value by either the weekly or monthly payroll divisor held on the Contract Table to convert it to an annual value. The choice of divisor (weekly or monthly) depends on the payroll frequency.
If you select Periodic or Periodic - Payroll Frequency, the Pay Source value must be Input Value.
You can define your own source time dimensions and their corresponding conversion factors.
Pay Source Value Specifies if the value is an input value, grade rate, spinal value (progression point), or global value, or whether the application calculates it as a percentage or factor of an element or rate type.
Qualifier Holds the name of the source specified in Pay Source Value, such as the name of the grade rate or element.
Full Time Equivalent Specifies whether the value is subject to FTE.
  • Select No if the value is not subject to FTE.

  • Select Yes if you want to apply FTE for all output time dimensions.

  • Select Yes--Excluding Hourly Rates if you want the formula to apply FTE for all output time dimensions except "H" (Hourly Rate) and "O" (Overtime Hourly Rate).

    Note: The Yes--Excluding Hourly Rates option is normally the correct selection if you want to calculate the same hourly rate for both part-time and full-time employees. However, select Yes if your formulas require you to apply FTE to the hourly rate.

Service History Specifies whether the formula must adjust the rate dependent on length of service.
% or Factor Segments These segments only apply for a pay source value of element name or rate type. The formula uses the rates history function to obtain the appropriate values for the element or rate type given in the Qualifier segment, then applies the appropriate percentage or factor.
  • % or Factor: Specifies whether to calculate the value as a percentage or a factor of the element or rate type given in the Qualifier segment.

  • % or Factor Value: Specifies the percentage or factor to apply to the element or rate type given in the Qualifier segment.

    For example: To apply 50%, you would enter 50. To double the base value, you would enter a factor of 2.

    You can leave this segment blank and specify a % or Factor Input Value instead.

  • % or Factor Input Value: Specifies the name of the input value that holds the percentage or factor required in the rate calculation. Alternatively, you can leave this segment blank and enter the percentage or factor in the % or Factor Value segment.

Linked to Assignment When a formula calls the historic rate function for a rate type, this segment specifies whether it returns a value for this element only for assignments that are linked to the element. Select No to return the rate for all assignments. Select Yes to return the rate only for assignments linked to the element.

Note: This segment does not apply if the Pay Source Value is Input Value. In this case, the formula calculates the rate only for employees who are linked to the element.

Apply Term Time Factor Specifies whether the formula adjusts rates by term time hours divided by annual hours. This factor applies to employees with annual term time hours defined on the Contract table.

Note: If you record term time hours in the Contracts table and set the Apply Term Time Factor segment to Yes, do not use FTE to prorate full time teachers' rates. Using FTE would compound the proration effects.

Sum Multiple Entries This segment only applies if the Pay Source Value is Input Value. If you select No (the default) and an assignment has multiple entries of the element, the formula returns a rate based on one of these entries selected randomly. If you select Yes, the formula returns a rate based on the sum of these entries.
Lookup Input Values This segment only applies if the Pay Source Value is Input Value. If you select No (the default), the formula returns a rate based on the lookup code for the input value. If you select Yes, the formula returns a rate based on the lookup meaning.

Setting Up Historic Rates

Setting Up Historic Rates

Follow these steps to set up the Historic Rates function.

To set up Historic Rates

  1. You (or your system administrator) register the following element EITs with your responsibility:

    See: Setting Up Extra Information Types Against a Responsibility, Oracle HRMS Configuring, Reporting and System Administrators Guide

  2. Create additional rate types by adding values to the lookup type PQP_RATE_TYPE.

  3. Set up elements to represent the payments used in your enterprise.

    Enter the following attribution:

    To use a formula calling a version of the historic rates function requiring date parameters, give each element an Input Value that has the same name as the formula input.

  4. Enter extra information using the Historic Rate - Rate Types and Historic Rate - Element Attribution EITs for all elements with historic values.

    See: Historic Rates Extra Information Types

  5. Define element links for all the elements.

  6. If your localization has enabled the Contracts Table:

    1. Enter contract information in the pre-configured user-defined table PQP_CONTRACT_TYPES.

    2. Add one row for each new contract type you want to set up.

      If you hold rates on input values and use the Period Divisor on the Contract Types table to convert the period value to an annual value (such as, Time Dimension = Periodic on the Element Attribution Information for your elements), you must create at least one contract type for each payroll frequency. For example: You must assign employees on a weekly payroll to a separate contract type from employees on a monthly payroll. This requirement does not apply if you select the Periodic - Payroll Frequency time dimension, which uses the weekly or monthly payroll divisor held on the Contract Types table to convert period values to annual.

      See: Entering Contract Types, Oracle HRMS Workforce Sourcing, Deployment and Talent Management Guide

    3. Assign people to contract types by selecting contract type and start date in the Extra Details of Service window.

  7. To make your rates subject to FTE, enter Working Hours and Frequency in the Assignment window.

    See: Setting Up FTE, Oracle HRMS Workforce Sourcing, Deployment and Talent Management Guide

  8. Write the payroll formula to derive the rate from the information you have set up (using the RATES_HISTORY function).

    See: Sample Rates History Formula, Oracle HRMS FastFormula User Guide

  9. In the Formula Result Rules window, associate each payroll formula with an element.

    1. Create a Standard processing rule.

    2. In the Formula Results region, select the Amount formula result as a direct result returning a pay value for the element.

    3. Select the Message result as a message type delivering a fatal error.

Setting Up Custom Time Dimensions for Historic Rates

In addition to the predefined time dimensions, you can set up your own custom time dimensions to reflect working patterns in your enterprise. For example: You can set up an additional daily frequency based on a fixed number of working days a year.

Custom time dimensions are available only to those localizations that have the PQP_CONTRACT_TYPES table enabled and accessible to users.

Use the Application Utilities Lookups window and the Table Structures window to enter custom time dimensions for historic rates.

To set up custom time dimensions for historic rates

  1. In the Application Utilities Lookups window, create a new entry in the PQP_TIME_DIMENSIONS_FACTORS lookup.

    For example, to define an additional Daily frequency based on a fixed number of working days a year, create the following entry:

    Code Meaning Description
    WD WORKING DAYS DIVISOR Working Days per Year
  2. In the Table Structures window add a new column to the PQP_CONTRACT_TYPES table. Give the new column the same name as the meaning entry that you created in the previous step. For example, to amend the PQP_CONTRACT_TYPES table to accept your new Daily frequency, add a column called WORKING DAYS DIVISOR.

  3. To define an element rate for your new custom time dimension, go back to the Application Utilities Lookup window and add your new lookup code to the PQP_TIME_DIMENSION lookup type.

    For example, to define an element rate as Daily - Working rate, add this entry to the PQP_TIME_DIMENSION lookup. Use your previous lookup code (WD):

    Code Meaning Description
    WD Daily - Working Daily rate based on the working days per year
  4. Save your work

Pennies for Charity Deductions

Pennies for Charity Deductions

Oracle Payroll enables you to set up pennies for charity deductions for your employees. The basis of the scheme is to deduct the residual pennies from participating employee’s net pay and send the total amount to the relevant charity. This charity deduction is a single payment equal to the total amount deducted per month or per pay period. The frequency of the deduction is as agreed between the employer and the charity.

Running the Penny Deduction Detail Report

This report shows the residual pennies deducted from participating employee’s net pay and sent by employer to the relevant charity. You run the report in the Submit Requests window.

To run the Penny Deduction details report

  1. Select the report name in the name field. Then enter the parameters field to open the Parameters window.

  2. Enter the effective date. This is a required parameter.

  3. Enter the PAYE Reference. This is a required parameter.

  4. Enter the employee number from whose pay the amount is deducted.

  5. Specify the employee inclusion criteria. You can indicate whether the criteria is zero PAYE liability or non zero PAYE liability.

  6. Indicate the order in which you want the details to be sorted in the report, for example, by employee number or NI number.

  7. Choose the Submit button.