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This guide also applies to on-premise implementations

Table of Contents

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1 Maintain Personal Payroll Information

This chapter contains the following:

Manage Batch Uploads

Manage Calculation Cards

Manage Element Entries

Manage Personal Payment Methods

Manage Payroll Relationships

Manage Costing for a Person

Manage Batch Uploads

Setting Up Oracle ADF Desktop Integration for Excel: Points to Consider

To use a desktop integrated Excel workbook to create or edit records that you can upload to Oracle Fusion Applications, you must fulfill software requirements, install a desktop client, and set up Microsoft Excel.

Software Requirements

You must have installed:

  • Microsoft Excel 2007 or 2010

  • Microsoft Windows XP Professional, Vista - Business, Vista - Ultimate, or 7

Desktop Client Installation

Install the Oracle ADF Desktop Integration Add-in for Excel, which is a desktop client that enables you to use the integrated workbooks that you download from Oracle Fusion Applications. If the client installer is not available under Navigator - Tools, then ask your administrator where you can find the installer.

Important

Make sure you are signed in to your computer with your account when you perform the installation. For example, you cannot have someone else sign in as an administrator and make the installation available for all users of your computer.

Depending on the setup of the client installer itself, you may get automatic updates when new versions of the client are available. If you do not get automatic updates, then you need to reinstall the client whenever the client version changes. You can find your client version in the About section of the workbook and ask your administrator if that version is the latest.

If the location of the client installer ever changes, then:

  • You will not receive automatic updates.

  • You must uninstall the client from your computer and use the installer from the new location.

Note

Any time you need to reinstall the client, you must first uninstall and then perform the install procedure again.

To uninstall, use the Add or Remove Programs dialog box from the Control Panel to remove the Oracle ADF Desktop Integration Add-in for Excel client.

Microsoft Excel Setup

Perform the following steps in Microsoft Excel only once, even if you reinstall the desktop client.

  1. Click the Microsoft Office button, and click the Excel Options button.

  2. In the Excel Options dialog box, select the Trust Center tab, and click Trust Center Settings.

  3. In the Trust Center dialog box, select the Macro Settings tab, and select the Trust access to the VBA project object model check box.

Note

The exact steps can vary depending on your version of Microsoft Excel.

Working in Desktop Integrated Excel Workbooks: Points to Consider

Where available, you can download a desktop integrated Microsoft Excel workbook in which you can create or edit records. While you work in the integrated workbook, no changes are actually made in Oracle Fusion Applications; your edits take effect only after you upload the records back. As you work, keep in mind conventions and statuses used in the file, requirements for search, possible need to refresh, and things you should not do.

Conventions

Some column headers in the integrated workbook might include [..]. This means that you can double-click or right-click within any cell in the column to open a dialog box that lets you select a value to insert into the cell.

Statuses

The worksheet status in the header area applies to the entire worksheet, or tab, within the integrated workbook. Likewise, the table status applies to only the corresponding table. The row status applies to the state of the row within the workbook, not to the record itself. For example, if the row is an expense item, the status does not mean the status of the expense item itself, but of the data in the row, in the context of the workbook.

Search

Some integrated workbooks have search functionality. For the search to work within the workbook, you must sign on to Oracle Fusion Applications.

Refresh

After you upload to Oracle Fusion Applications, you might need to refresh the data in the table if your changes are not reflected. You can use the refresh option for the table, or perform a filter or search on the table.

What You Should Not Do

To make sure that the upload to Oracle Fusion Applications goes smoothly, do not:

  • Rename text from the integrated workbook, for example the worksheet or tab names.

  • Use your own styles in the file.

  • Add columns.

  • Delete any part of the template, for example columns.

  • Hide required columns and status columns or headers.

Payroll Batch Upload Tasks: Explained

Batch loader workbooks are a fast way to upload batches of data. You load data into staging tables using the generic batch loader then transfer the batch into live HCM tables.

Batch uploads can be created, based on predefined templates, to load the following data:

  • Balances

  • Balance groups

  • Elements

  • Element entries

  • Payroll definitions

  • Payroll relationships

  • Personal payment methods

  • Bank information for electronic funds transfer payments

  • Fast formula global values

  • Object groups

This figure illustrates the tasks to complete to create and upload data using the batch upload workbooks.

Processes of the batch loader

You can access the batch loader in the Data Exchange work area. Payroll managers and administrators can also access the batch loader and batch processes in the Payroll Administration work area, or using the Enter Batch task if it is included in a flow.

Create Batch

Create a batch directly on the batch loader workbook or through the Create Batch process run on the Submit a Process or Report page in the Payroll Calculation work area. Enter a batch manually by adding rows for each line of data for the batch needed. Create a batch through a process to automatically add rows to the workbook for the people and elements in which you want to add data. Prior to running the Create Batch process you must create object groups that contain the elements or people needed in the batch. The create batch process can only run for element entries and balances.

Enter Batch

You enter data in columns, which vary depending on the type of batch you are creating. Add rows for each line of data that you need to add.

Transfer Batch

A batch exists in the temporary staging tables until you run the Transfer Batch process to create entries in the HCM table in which the data is applicable. Access the Submit a Process or Report task from the Payroll Administration work area to run the Transfer Batch process.

Review Batch

Once you have transferred the batch, access the Batch Message Sheet, on the batch loader workbook, to view any messages that occurred from the transfer process being run. If an error occurred, correct the problem causing the error and rerun the Transfer Batch process.

Purge Batch

You purge batch data once it is transferred successfully to the applicable HCM tables. You run the Purge Batch process on the Submit a Process or Report page. You can purge a batch at any time.

Payroll Batch Load Process: Explained

The Payroll batch loader imports data from integrated Microsoft Excel workbook templates into the staging tables and transfers that data into the application.

This topic describes how to populate the workbook manually, but there are other options:

  • Submit the Create Batch process to create a batch for all members of an object group.

  • Submit the Create Batch from File process to create a batch from data in a file.

  • Use the Manage Batch Uploads web service to create a batch.

Depending on the data type that you want to load, there may be several upload tasks available, each with a template that supplies all of the required and optional columns you can use.

Tip

Some upload tasks have interdependencies and must be performed sequentially. It is recommended that you create separate workbooks for each of these tasks, for each legislative data group where you are adding data for related objects, to ensure that these dependencies are intact. For example, banks and branches are related, so you first create banks in one workbook, and then create the branches together in the next workbook.

The basic process for importing data using the Payroll batch loader is:

  1. For each task, populate the batch loader workbook and import the data into the staging tables.

  2. Transfer the uploaded data from the staging tables.

  3. Verify the import results.

Prerequisites

Before you can populate worksheets, you must have installed Oracle ADF Desktop Integration for Excel.

Populating the Workbook

When you download the batch loader workbook, you use it to enter your data. The following steps show how to download the workbook, add your data, and upload the data to the staging tables.

Important

All data that you create should be unique for the given legislative data group that you select in the batch header.

  1. In the Payroll Administration work area, click Batch Loader, and then click Download. Open the workbook and sign in.

  2. On the last row of the Batch Header Sheet tab, in the Batch Name field, enter a name for the batch.

    This name is what you use when running the transfer process to move the data from the staging tables.

  3. In the same row, select the legislative data group from the list, then click Save.

  4. On the Batch Content Sheet tab, under Batch Contents Action, click Add, and then select the task you want.

  5. In the Batch Content Line Details section, insert rows for each data item that you want to add and enter all required values.

  6. Click Save and leave the workbook open.

Transferring the Batch

After you have saved your data to the staging tables, you submit a process to transfer the batch.

The following steps show how to move the data from the staging tables and verify that the transfer was successful.

  1. In the Payroll Administration work area, click Submit a Process or Report.

  2. Select your legislative data group.

  3. In the Flow Pattern column, select Transfer Batch, and then click Next.

  4. In the Payroll Flow field, enter a name for the process. You can use this name later when looking for process status.

  5. In the Batch field, search for and select the batch name you want to transfer, and then click Next.

  6. On the Enter Flow Interaction page, click Next.

  7. On the Review page, click Submit, and then click OK and View Checklist.

  8. Click Refresh until the Transfer Batch process status displays as complete.

  9. In the workbook, display the Batch Messages Sheet, then display the Batch Content Sheet. The status should be Transferred.

  10. Display the Batch Message Sheet. You should see no error messages

Payroll Batch Statuses: Explained

Batches that you manage in workbooks from the Batch Loader page include a status, displayed on the Batch Header Sheet. The status depends on the status of the batch header, all the batch lines, and any control totals specified for the batch. On the Batch Header Sheet, you can see the following status values:

  • Valid

  • Transferred

  • Transfer incomplete

  • Unprocessed

  • Error

Valid

When the status is marked as Valid, all of the lines, control totals, and header are valid.

Transferred

When the status is marked as Transferred, all of the lines, control totals, and header have been transferred from the staging tables to the live HCM tables..

Transfer Incomplete

When the status is marked as Transfer Incomplete, the header and control totals have been transferred, along with some of the lines.

Unprocessed

When the status is marked as Unprocessed, at least one line, control total, or the header is unprocessed, and no lines have been transferred.

Error

When the status is marked as Error, the header has not been transferred and at least one line, control total, or the header is in error. Go to the Batch Message Sheet to view details about the content lines in error.

Creating Globals Using the Batch Loader: Worked Example

This example demonstrates how to enter globals for two types of bonuses in the InFusion US Sun Power legislative data group using the batch loader workbook. The bonus for executives is initially set at ten percent. The bonus for instructors is initially set at a fixed value of 500. These values can later be changed in the global so that the same value is applied in any formulas that use them.

There are three sheets associated with the batch loader: Batch Header Sheet, Batch Content Sheet, and Batch Messages Sheet.

The following table summarizes key decisions for this scenario.


Decisions to Consider

In This Example

What type of data do I want to load using the workbook?

Fast Formula Global

What is the legislative data group for the batch?

InFusion US Sun Power

What is the name to assign to the batch?

InFusion Globals

What are the globals to create?

Executive Bonus for a percentage and Instructor Bonus for a fixed amount.

Prerequisite

This worked example assumes that the following prerequisite has already been met:

  1. You have installed Oracle ADF Desktop Integration Runtime Add-in for Excel.

Creating a Batch Header

  1. From the Payroll Administration work area, select the Batch Loader task.
  2. On the Batch Loader page, click Download.
  3. After the DesktopGenericBatch.xlsx file downloads, open the file.
  4. When prompted to connect, click Yes.
  5. In the Login dialog box, enter your user ID and password, and then click Sign In.
  6. Navigate to the Batch Header Sheet at the bottom of the workbook.
  7. In the Batch Name column of the Search Results section, enter InFusion Globals.
  8. In the Legislative Data Group list, select InFusion US Sun Power.
  9. Click Save.
  10. In the Upload Options dialog box, accept the default selection and click OK.

    Once your selections are saved, the Batch Status text for that row displays that the row inserted successfully.

Creating Batch Content

  1. On the Batch Header Sheet, double-click the batch name InFusion Globals to prepare for data entry.
  2. Navigate to the Batch Content Sheet.
  3. Under Batch Contents Action, click Add.
  4. In the Task Name field, enter Fast Formula Global.
  5. Click Search.
  6. Select Fast Formula Global, and then click OK.

    The workbook should update to display the columns for the selected task, ready for data entry.

  7. In the Batch Line Content Details section enter the values for each global as shown in this table.

    Field

    First Global Value

    Second Global Value

    Line Sequence

    1

    2

    Effective Start Date

    2011-01-01

    2011-01-01

    Effective End Date

    2020-12-31

    2020-12-31

    Value

    .10

    500

    Data Type

    N

    N

    Name

    Executive Bonus

    Instructor Bonus


    Note

    To insert more lines for additional global values, right-click on the row number where you want to add a row, and then select Insert.

  8. Click Save.
  9. In the Upload Options dialog box accept the default selection and click OK.

    Important

    Keep the workbook open. You will verify the globals were transferred in the final step of this example.

h3 class="task title" id="F923089AN10DC4">Transferring the Batch
  1. From the Payroll Administration work area, click Submit a Process or Report.
  2. In the Legislative Data Group field, select InFusion US Sun Power.
  3. In the Flow Pattern column, select Transfer Batch, and then click Next.
  4. In the Payroll Flow field, enter a name for the process, such as InFusion Globals Batch.
  5. In the Batch field, search for and select InFusion Globals, and then click Next.
  6. On the Enter Flow Interaction page, click Next.
  7. On the Review page, click Submit.
  8. Click OK and View Checklist.
  9. Click Refresh until the Transfer Batch process status displays as complete.

Verifying the Transfer

  1. In the workbook, navigate to the Batch Messages Sheet.
  2. Navigate to the Batch Content Sheet.

    You should see the status displayed as transferred.

  3. Navigate back to the Batch Message Sheet.

    You should see no error messages. The new globals are now available for use in your formulas.

h3 class="topicref section" id="F874922AN10EF8">Creating Element Entries Using the Batch Loader: Worked Example

This example demonstrates how to create element entries for bonus earnings for two workers in the InFusion US Sun Power legislative data group using the batch loader. Nichole is an executive and receives a bonus that is ten percent of her salary. Joseph is an instructor and receives a fixed amount of 500.

There are three sheets associated with the batch loader: Batch Header Sheet, Batch Content Sheet, and Batch Messages Sheet.

The following table summarizes key decisions for this scenario.


Decisions to Consider

In This Example

What type of data do you want to load in the workbook?

Element Entry

What is the legislative data group for the batch?

InFusion US Sun Power

What is the name to assign to the batch?

InFusion Bonus

What is the name of the bonus element to use for the batch?

Bonus - Annual

Who are the workers to receive the bonus element entries?

Nichole Brown and Joseph Frederickson

Prerequisites

This worked example assumes that the following prerequisites have already been met:

  1. You have installed Oracle ADF Desktop Integration Runtime Add-in for Excel.

  2. A bonus element has been created that is set at the assignment level for element entries.

  3. You know the assignment numbers of the workers to receive the bonus element entries.

Creating a Batch Header

  1. From the Payroll Administration work area, select the Batch Loader task.
  2. On the Batch Loader page, click Download.
  3. After the DesktopGenericBatch.xlsx file downloads, open the file.
  4. When prompted to connect, click Yes.
  5. In the Login dialog box, enter your user ID and password, and then click Sign In.
  6. Navigate to the Batch Header Sheet at the bottom of the workbook.
  7. In the Batch Name column of the Search Results section, enter InFusion Bonus.
  8. In the Legislative Data Group list, select InFusion US Sun Power.
  9. Click Save.
  10. In the Upload Options dialog box, accept the default selection and click OK.

    Once your selections are saved, the Batch Status text for that row displays that the row inserted successfully.

Creating Batch Content

  1. On the Batch Header Sheet, double-click the batch name InFusion Bonus to prepare for data entry.
  2. Navigate to the Batch Content Sheet.
  3. Under Batch Contents Action, click Add.
  4. Search for and select the Bonus - Annual task name, and then click OK.

    The workbook should update to display the columns for the selected element, ready for data entry.

  5. In the Batch Line Content Details section, enter the values for Nichole as shown in this table.

    Field

    Value

    Line Sequence

    1

    Effective Start Date

    2012-12-15

    Assignment Number

    E1000842

    Percentage

    10

    Legislative Data Group

    InFusion US Sun Power


  6. Right-click the next row number and insert a row for Joseph's details.
  7. Enter the values for Joseph as shown in this table.

    Field

    Value

    Line Sequence

    2

    Effective Start Date

    2012-12-15

    Assignment Number

    E1003564

    Pay Value

    500

    Legislative Data Group

    InFusion US Sun Power


  8. Click Save.
  9. In the Upload Options dialog box accept the default selection and click OK.

    Important

    Keep the workbook open. You will verify the element entries were transferred in the final step of this example.

Transferring the Batch

  1. From the Payroll Administration work area, click Submit a Process or Report.
  2. In the Legislative Data Group field, select InFusion US Sun Power.
  3. In the Flow Pattern column, select Transfer Batch, and then click Next.
  4. In the Payroll Flow field, enter a name for the process, such as InFusion Bonus Batch.
  5. In the Batch field, search for and select InFusion Bonus, and then click Next.
  6. On the Enter Flow Interaction page, click Next.
  7. On the Review page, click Submit.
  8. Click OK and View Checklist.
  9. Click Refresh until the Transfer Batch process status displays as complete.

Verifying the Transfer

  1. In the workbook, navigate to the Batch Messages Sheet.
  2. Navigate to the Batch Content Sheet.

    You should see the status displayed as transferred.

  3. Navigate back to the Batch Message Sheet.

    You should see no error messages. The element entries are now attached to Nichole and Joseph. You can use the Manage Element Entries task to find the workers and see the new element entries.

Payroll Batch Loader Workbooks for Bank Data

You can use the Payroll batch loader to import bank data from integrated Microsoft Excel workbook templates into the staging tables and transfer that data into the application. This topic explains the tasks you can add to the workbook and the columns you can complete for each task.

This table explains the four tasks that you can add to the workbook that load bank information.


Task Name

Purpose

Create Bank

Create a bank name and optional bank code, making it available when creating bank branches.

Create Bank Branch

Create a branch of a bank that already exists. Branch data includes name, number, and identifiers for electronic funds transfers.

Create External Bank Account

Create a bank account, based on an existing bank and branch, to use in personal payment methods.

Restriction

Bank account numbers of source accounts for payments to workers cannot be created using this task.

Create Personal Payment Method

Create personal payment methods details, such as allocation of electronic funds transfer payments to a worker.

Tip

To create personal payment details for external payees, use the Manage Third-Party Payment Methods task in the Payment Distribution work area. There is no batch loader task to manage payments to third parties.

These four tasks have interdependencies. It is recommended that you create separate workbooks for each of these tasks, for each legislative data group where you are adding bank information, to ensure that these dependencies are intact. For example, you can first create multiple banks in one workbook, then create all of the branches together in the next workbook, and so on.

Bank Columns

The Create Bank task workbook uses the following columns to create a new bank name and optional bank code identifier.


Column

Required

Comments

Line Sequence

Yes

NUMBER

Enter 1 for the first row and continue sequentially for subsequent rows.

Bank Name

Yes

VARCHAR2(1440)

Name of the bank to create.

Important

When adding bank names, ensure that a bank with the same name does not already exist. Also, ensure that you follow any naming conventions that may be in place.

Bank Number

No

VARCHAR2(400)

Bank number of bank to create. Bank number validation varies depending on country-specific rules.

Bank Branch Columns

The Create Bank Branch task workbook uses the following columns to create branch information for a specified bank name.


Column

Required

Comments

Line Sequence

Yes

NUMBER

Enter 1 for the first row and continue sequentially for subsequent rows.

Bank Name

Yes

VARCHAR2(1440)

Name of the name of the bank for the branch to create.

Bank Branch Name

Yes

VARCHAR2(1440)

Name of branch to create. Must be unique for the bank name and legislative data group that you select in the batch header.

Bank Branch Number

Yes

VARCHAR2(120)

Branch number of branch to create. Must be unique for the bank name and legislative data group that you select in the batch header.

Branch number validation varies depending on country-specific rules. For example, in Australia, the combined value of bank number and branch number must not exceed six numbers.

BIC/SWIFT Code

No

VARCHAR2(120)

Bank identifier code or SWIFT code that identifies bank and branch information for payments between two financial institutions. Known as Sort Code in UK or Routing/Transit Number in US.

External Bank Account Columns

The Create External Bank Account task workbook uses the following columns to create bank accounts, based on existing banks and branches. After you create external bank accounts, they can be available for use in personal payment methods for workers.


Column

Required

Comments

Line Sequence

Yes

NUMBER

Enter 1 for the first row and continue sequentially for subsequent rows.

Bank Name

Yes

VARCHAR2(1440)

Name of existing bank.

Bank Branch Name

Yes

VARCHAR2(1440)

Name of existing branch.

IBAN

No

VARCHAR2(200)

International bank account number conforming to the ISO standard for uniquely identifying a bank account for payments between banks. For some legislations only.

Account Type

No

CHAR(32)

Based on values in the AR_IREC_BANK_ACCOUNT_TYPES lookup table. Valid values are:

  • CHECKING

  • MONEYMRKT

  • SAVINGS

  • UNKNOWN

Secondary Account Reference

No

VARCHAR2(120)

Usage varies by legislation, for example, this is known as Building Society Number in UK.

Account Name

No

VARCHAR2(1440)

Label used to identify bank account when there are multiple accounts, for example, Checking or Savings.

Person Number

Yes

NUMBER(18)

Payroll relationship ID or third-party payee ID of an existing person with a corresponding TCA party.

Personal Payment Method Columns

The Create Personal Payment Methods task workbook uses the following columns to set up payment details, such as allocations to electronic funds transfer payments, for individual workers.


Column

Required

Comments

Line Sequence

Yes

NUMBER

Enter 1 for the first row and continue sequentially for subsequent rows.

Effective Start Date

Yes

DATE

The first date the payment method is available for use. Must be in the format YYYY-MM-DD.

Payroll Relationship Number

Yes

NUMBER(18)

Existing payroll relationship ID that identifies the person whose payment information you want to create.

Amount

No

NUMBER

If Amount is selected as the payment amount type, the amount value.

Priority

Yes

NUMBER(18)

When there are multiple payment methods for a person, priority identifies which payment method should be processed first.

Organization Payment Method

Yes

NUMBER(18)

The existing ID of the default organization payment method for the worker's payroll. If bank account information is provided, this value must be the ID of an electronic funds payment (EFT) method. If it is the ID of another method, such as check or cash, the upload will fail.

Percentage

No

NUMBER(22)

If Percentage is selected as the payment amount type, the percentage value.

Payment Amount Type

Yes

VARCHAR2(30)

Determines whether the Amount or Percentage columns are used to specify how much is paid using this payment method. Valid values are Amount or Percentage.

Bank Account Number

Yes

NUMBER(18)

Must be an existing bank account.

FAQs for Manage Batch Uploads

How can I access the payroll batch loader?

Select Manage Batch Uploads from the Data Exchange work area. For payroll managers and administrators, select the Batch Loader task in the Payroll Administration work area. If a flow includes the batch loader, you can also access it from the Payroll Checklist work area using the Enter Batch task on the Payroll Flow page.

Can I upload an Excel spreadsheet I create to the batch upload workbook?

No, you must use the workbook downloaded from the batch loader. The batch loader automatically inserts macros that are essential for the success of your subsequent processing. You can download the batch upload workbook to your desktop and edit the data before reloading it.

How do I modify an Excel workbook template for payroll?

Integrated Microsoft Excel workbook templates cannot be modified. This restriction ensures the fields entered correspond exactly to the HCM tables that receive the uploaded data.

Manage Calculation Cards

Entries on a Personal Calculation Card: How They Fit Together

Personal payroll calculation cards represent information specific to a particular payroll relationship. Personal payroll calculation cards comprise the components shown in this figure:

Illustrates components of a personal calculation card described in sections that follow

Calculation Cards

Personal calculation cards capture information used to calculate one or more related component groups. For example, a calculation card can capture tax withholding information for calculating one or more tax deductions. A person may have multiple calculation cards, such as one for statutory deductions, another for involuntary deductions, and one for time card entries.

To view and manage calculation cards, select the Manage Calculation Cards task in the Payroll Administration or Payroll Calculation work area. The types of calculation cards you can create and the type of information captured on a card vary by legislation.

In legislations where all employees are subject to the same set of statutory deductions, the application will automatically create one or more statutory deduction calculation cards when a new employee is added. In other legislations, you must create calculation cards manually. Likewise, for involuntary deductions, pensions, time cards, and absences, you create calculation cards as needed for each employee. If you load absence, time card, or pension data from another application, the application automatically creates the calculation cards.

Component Groups

Component groups are logical sets of payroll components. Component groups are predefined for each legislation. To view the component groups related to a calculation card, expand the Component Groups node in the Calculation Card Overview pane on the Manage Calculation Cards page.

Calculation Components and Component Details

A calculation component on a personal calculation card typically relates to an element, such as an income tax deduction. Adding a calculation component to the card creates an entry for the related element.

If the calculation varies based on one or more factors, such as the employee's place of residence or tax filing status, the calculation component may have one or more references that define its context. Calculation component details capture additional information used to calculate component information.

To view components for a component group, click the component group node in the Calculation Card Overview pane on the Manage Calculation Cards page. The center pane displays a list of existing components and allows you to create new ones. To view details for a calculation component, click a row in the Calculation Components table. Use the Component Details section to enter values used in the calculation of the calculation component.

Note

The calculation information displayed in the center pane varies by legislation, and may not include the Calculation Components and Component Details sections. Instead, this pane may display a different form for capturing data items specific to your legislation.

Enterable Calculation Values

When you select a calculation component, you see the Enterable Calculation Values on Calculation Cards tab if there are any values that you can enter at the person level. These values may override values defined in a calculation value definition. You cannot override values passed through an interface, but you may be able to add values, such as adding additional contributions to a pension deduction.

Tax Reporting Unit Associations and Association Details

Associating a tax reporting unit (TRU) with a calculation card enables the payroll process to apply rules and rates defined for that TRU when performing calculations. Associations also control how calculations are aggregated for tax reporting. Association rules vary by legislation. Typically, all calculations defined on a calculation card are associated with the same tax reporting unit by default, however you may be able to associate individual calculation components with different tax reporting units. If a person has multiple terms or assignments, you may also be able to associate specific terms or assignments with calculations components.

To view or manage associations for a calculation card, click the Associations node in the Calculation Card Overview pane on the Manage Calculation Cards page.

Creating a Personal Calculation Card for Statutory Deductions: Worked Example

This example demonstrates how to create a calculation card at the payroll relationship level. The calculation card captures information for an income tax deduction that varies depending on a person's tax filing status.

The following table summarizes the key decisions for this scenario.


Decisions to Consider

In This Example

What type of calculation card do you want to create?

Statutory deduction card

What deductions do you want to add to the card?

Income tax deduction

What details must be captured on the card?

Person's tax filing status

What tax reporting unit reports this deduction?

InFusion TRU1

Does the employee have multiple terms or assignments?

No

Prerequisite

  1. Make sure your legislation supports an income tax deduction.

    If it does, the necessary calculation card definition and calculation components are predefined.

Create the Calculation Card

  1. In the Payroll Administration or Payroll Calculation work area, select Manage Calculation Cards.
  2. Complete the fields in the Search section, as shown in this table.

    Field

    Value

    Name

    John Doe

    Legislative Data Group

    InFusion LDG

    Effective Date

    Current date


  3. Click Search.
  4. Click the person's name in the Search Results to open the Manage Person Details page. Any available calculation cards appear in the Search Results.
  5. Click Create to open the Create Calculation Card window.
  6. In the Name field, select Statutory Deductions as the calculation card type.
  7. Click Continue to display the Manage Calculation Cards page.

    Note

    Use the Calculation Card Overview pane to view the calculation groups associated with this calculation card. In this example, you should see a Taxes component group. A calculation card may contain multiple component groups.

Create Calculation Components

  1. In the Calculation Card Overview pane, click the Taxes node.
  2. In the Calculation Component section, click Add Row to open the Create Calculation Component window.

    Note

    If your legislation uses a country-specific template to display and capture calculation information, the Calculation Component and Component Details sections may not appear.

  3. In the Calculation Component field, select Income Tax.

    A calculation component typically corresponds to an element defined at the legislative level.

  4. Click OK.

Create Calculation Component Details

  1. In the Calculation Component Details section, click Create.
  2. In the Calculation Component Details field, select Income Tax Details.
  3. Click OK.
  4. Complete the fields displayed in the Component Details section. For this example, select the person's tax filing status in the Tax Code field.

    Note

    Component details vary for each calculation component. For some components, you may also be able to enter amounts, rates, or other values. If you can enter values, the Enterable Values on Calculation Cards tab appears. For this example, no values can be entered.

Creating an Association

Associations link a calculation card or component with a tax reporting unit. Association rules vary by legislation. Typically, all calculations components on a calculation card are associated with the same tax reporting unit by default, but you can, in most cases, associate individual calculation components with different tax reporting units. You may also associate specific terms or assignments with calculation components.

  1. In the Calculation Card Overview pane, click the Associations node.
  2. Click Create.
  3. Select InFusion TRU1 and click OK.

    Since you did not select a calculation component, the tax reporting unit is associated with all components on the card.

  4. Select the new association in the Associations section, and then click Create in the Association Details section.
  5. Select the employment terms (for this employee, there is only one option) and the calculation component you just created, and then click OK.

    When a payroll run processes the selected employment terms, it uses the details you defined for this calculation component. If an employee has multiple terms, you could associate each with different calculation components, if different rates, rules, or other details apply.

  6. Click Save and Close.

Enterable Values on Calculation Cards: Explained

Some values entered on a calculation card override values defined in a calculation value definition. For example, an organization might set a default tax rate at the legislative level, and allow the rate to be overridden by a flat amount entered on a personal calculation card at the payroll relationship level.

When the payroll process runs, it checks for values entered on calculation cards in the following order:

  1. Payroll relationship

  2. Tax reporting unit (deductions only)

  3. Payroll statutory unit (deductions only)

When the process finds an entered value, it stops checking and uses the values defined at that level.

Note

Some localizations do not support calculation cards for tax reporting units or payroll statutory units.

Allowing Enterable Values on Calculation Cards

Enterable values for statutory and involuntary deductions are predefined. You cannot allow new enterable values for predefined calculation value definitions.

If you create a custom calculation value definition, you can allow users to enter a value on a calculation card by adding the value to the Enterable Calculation Values section on the Calculation Cards table on the Create or Edit Calculation Value Definition page. You must provide the display name to appear on the calculation card. The list of values available for entry varies depending on the calculation type. For example, you can allow users to enter the percentage value for a flat rate calculation or the monetary value for a flat amount calculation. The following values are available for all calculation types except text:

  • Calculation value definition: Uses the values entered on the calculation card to calculate the amount.

  • Total amount: Uses the amount entered on the calculation card as the total deduction amount.

  • Additional amount: Adds the amount entered on the calculation card to the calculated amount.

If you allow multiple enterable values for the same calculation value definition, the calculation process applies them in the following priority:

  1. Total amount

  2. Deduction range

  3. Calculation value, such as rate or flat amount

Entering Values on Calculation Cards

Use the Manage Calculation Cards in the Payroll Calculation or Payroll Administration work area to enter values on personal calculation cards. The contents and format of the page vary between legislations and card types. If you see a tab called Enterable Calculation Values on Calculation Cards when you select a calculation component, you can select the type and enter a value on this tab. For example, you might enter a rate to be used in the calculation or an amount to be added to the calculated amount.

If your legislation and card type supports calculation cards at multiple levels, use the Manage Legal Entity Calculation Cards task in the Setup and Maintenance work area to create calculation card overrides at the payroll statutory unit level. Use the Manage Legal Reporting Unit Calculation Cards task in the Setup and Maintenance work area to create calculation card overrides at the tax reporting unit level.

Creating Involuntary Deductions: Overview

Use element templates to create the involuntary deduction types supported for your legislation, such as bankruptcy orders, garnishments, child support payments, tax levies, and educational loans. You can create involuntary deduction elements as needed using these predefined templates. You can then add the corresponding calculation component to a personal calculation card so the deduction will be processed during a payroll run.

This figure shows the steps involved in creating an involuntary deduction.

Diagram showing each step described in remainder of this topic

Create Third-Party Payment Methods

Use the Manage Third-Party Payment Methods task in the Payment Distribution work area to create payment methods for all external payees. For example, you might set up direct deposit for the payee of a child support deduction. A payee can be either a person or an organization.

  • If you create a third-party payment method for a person, you must select the payroll relationship for the employee whose pay is subject to the deduction. This makes the person payment method available for selection as a payee on the employee's involuntary deduction calculation card.

    For example, you might set up an electronic funds transfer (EFT) for Mary Smith, payee of a child support deduction for John Smith. When you create the person payment method, you select the payroll relationship for John Smith. When you add the child support order to John Smith's involuntary deduction card, you can select Mary Smith in the Order Amount Payee field.

  • If you create a third-party payment method for an organization, you select the legislative data group for employees whose pay is subject to the deduction. This makes the organization payment method available for selection as a payee on the employee calculation cards.

    For example, you might set up an EFT payment method for a County Sheriff that receives a processing fee on garnishment payments. When you create the third-party organization, you designate the County Sheriff with the party usage code of External Payee. When you add the garnishment order to the employee's involuntary deduction calculation card, you can select the County Sheriff in the Processing Fee Payee field.

    You can create a third-party organization for a court or other issuing authority, even if the organization is not being paid. This allows you to record address and contact information that you can later associate with the deduction on the involuntary deduction calculation card.

For both types of third-party payment methods, you must select a previously defined organization payment method to use. (Use the Manage Organization Payment Methods task in the Payment Distribution work area to define the payment source, if not already defined.)

Create an Involuntary Deduction Element

An involuntary deduction element must be defined for each involuntary deduction type you need to process. Involuntary deduction elements can be created during initial setup and as the need arises later. You can create multiple elements for the same involuntary deduction type if processing information or other details vary. For example, court orders from different jurisdictions might have different processing rules. The involuntary deduction element creation process is summarized here. You can skip this task if an element has already been defined for the type of involuntary deduction you want to add to a person's calculation card and the element's processing rules meet your needs.

  1. Using the Manage Elements task in the Payroll Calculation work area, create a new element with a primary classification of Involuntary Deduction and a secondary classification that reflects the deduction type, such as tax levy or child support. (Secondary element classification names vary by localization.)

  2. Answer the questions on each page of the Create Element flow. For example, you must indicate whether or not to create arrears if the full amount cannot be taken. A predefined set of rules, plus the answers you provide, determine which earnings contribute to the deductible amount and how the deduction will be processed.

  3. Define eligibility for the element. To define open eligibility, enter a name for the element eligibility record but do not specify any criteria.

  4. Define costing for the element as appropriate.

    Note

    To define costing for related elements, you must open and edit each element individually.

When you save the element, the application automatically creates all associated balances, feeds, input values, formulas, and related elements required for payroll processing. It also creates a calculation component that you can add to an employee's involuntary deduction card. Fee rules and proration rules are predefined in calculation value definitions, based on statutory rules that vary by localization. Global rules are as follows:

  • Fee rule: Deduct the fee first, before calculating and paying the deduction amount.

  • Proration rule: First come, first serve. If a person has multiple orders and there is insufficient money to pay them all, deductions are paid in order by the date they were received, as recorded on the calculation card. (Oldest is paid first.)

  • No fee amounts or protected pay amounts are predefined. You can enter these amounts as overrides on the involuntary deduction calculation card.

Create an Involuntary Deduction Calculation Card

Using the Manage Calculation Cards task in the Payroll Administration or Payroll Calculation work area, search for and select a payroll relationship. Create a new calculation card of the type Involuntary Deductions.

Add the Calculation Component to the Calculation Card

On the Manage Calculation Cards page:

  1. Click Add Row and select the calculation component with the same name as the previously defined involuntary deduction element.

    Adding the calculation component to the card automatically creates an element entry for the related element.

  2. If the calculation card will include more than one calculation component, you can specify the order in which the deductions should be processed in the Subprocessing Order field. For example, if you set the Subprocessing Order to 103 for a child support deduction and set it to 104 for a court order, the payroll run processes the child support deduction before the court order. By default, involuntary deduction element entries are processed in order by date received; the oldest is processed first.

  3. Enter a reference code to uniquely identify this deduction, such as a court order number, case number, or other identifier provided by the issuing authority.

  4. Complete the fields on the Calculation Component Details tab.

    • In the Involuntary Deduction Payment Details section, select all payees for the deduction. The payee fields display all third-party person payees associated with this payroll relationship and all external payees defined for your legislative data group.

    • In the Involuntary Deduction Rules section, specify the date the involuntary deduction order was received, the issuing authority (such as a court), the frequency of the deduction, and any other pertinent information.

      Note

      Use the Frequency field to specify how often the deduction should be taken, such as monthly or weekly, regardless of the payroll frequency. If you leave the Frequency field blank, the application uses the payroll frequency.

You can add multiple calculation components for the same or different involuntary deduction types. For example, you could add two child support components and one garnishment components to the same calculation card. Assign each component a unique reference number and, optionally, specify the subprocessing order.

Enter Values for the Deduction Amounts

You enter the order amount, fee, or other amounts used in the calculation on the deduction calculation card. The values you enter replace any default values defined in calculation value definitions at the legislative level. The default order amount for an involuntary deduction is typically zero.

The process of creating overrides is summarized here:

  1. On the Enterable Calculation Values on the Calculation Cards tab, create a value for Order Amount (Rate) or Order Amount (Amount).

    For example, if you specified a frequency of monthly in the component details, enter the amount to deduct each month, regardless of the payroll period; the application automatically calculates the correct amount to deduct in each payroll run. If you did not specify a frequency, this amount will be deducted at the payroll frequency defined for the payroll relationship.

  2. Enter additional values, as needed, for fees, protected pay amount, minimum and maximum withholding amounts, and other values applicable to this deduction.

    Make sure that you have selected a payee on the component details for each fee value you enter.

Process the Payroll with Deductions

During a payroll run, the status processing rule for the deduction element calculates the correct deduction amount based on rules predefined for the payroll component plus information entered on the calculation card.

Entering Values for Involuntary Deductions: Critical Choices

You define the order amount for an involuntary deduction by entering a calculation value on the person's involuntary deduction card. You can also enter values for fees and other amounts used in the calculation. These values override default values defined in calculation value definitions at the legislative level.

Enterable Calculation Values on Calculation Cards

The values you can enter on a calculation card may vary by legislation, but typically include the items described in this table.

Note

For most values, you can enter either an amount or a rate. Enter a rate if you want the application to calculate the amount as a percentage of available pay. For example, to define a rate of 20 percent for the order amount, create an Order Amount (Rate) value and enter 20 in the Rate field.


Calculation Value Name

Description

Order Amount

Rate or amount paid to the Order Amount Payee based on the frequency you specified.

For example, if you specified a frequency of monthly in the component details, enter the amount to deduct each month, regardless of the payroll period; the application automatically calculates the correct amount to deduct in each payroll period. If you left the Frequency field blank, this amount will be deducted at the payroll frequency defined at the terms or assignment level.

Organization Fee

Rate or amount paid to the Organization Fee Payee each time the deduction is processed.

Person Fee

Rate or amount paid to the Person Fee Payee each time the deduction item is processed.

Processing Fee

Rate or amount paid to the Processing Fee Payee each time the deduction is processed.

Initial Fee

Rate or amount paid to Processing Fee Payee the first time this deduction is processed.

Maximum Withholding Amount and Minimum Withholding Amount

Maximum and minimum rates or amounts that can be withheld in one payroll processing period for this deduction.

Maximum Withholding Duration

The number of days after the Date Received that the order is valid. For example, a court order might only be valid for 90 days after the date issued.

Protected Pay Amount

Amount of the employee's pay that is exempt from this deduction. Only pay exceeding this amount will be included in the deductible amount (available for the deduction).

Exemption Percentage

Percentage of the employee's pay that is exempt from this deduction.

Involuntary Deduction Processing: Examples

Use these examples to understand how involuntary deductions are processed in different scenarios. Processing rules may vary by legislation or legal authority issuing the order for the deduction.

Involuntary Deduction Has Initial Fee and Processing Fee

Scenario: A US employee is issued a court order for a monthly garnishment for 500 USD. The order is subject to a 10 USD one-time initial fee and a 10 USD monthly processing fee, which are both paid to the agency responsible for administering the account and forwarding payment to the recipient.

Involuntary Deduction Calculation Card: Add a calculation component for a garnishment and then:

  1. Select the Order Amount Payee and the Processing Fee Payee. (The processing fee payee is also the initial fee payee.)

  2. Set the Frequency to monthly.

  3. Create an Order Amount value, and set the amount to 500.

  4. Create a Processing Fee Amount value, and set the amount to 10.

  5. Create an Initial Fee Amount value, and set the amount to 10.

Payroll Run Results:

  • The amount of the employee's pay subject to deduction is 1000 USD.

  • During the first monthly payroll after the court order is received, both the initial fee amount and the processing fee are deducted, for a total deduction amount of 520 USD.

  • In subsequent payroll runs, only the processing fee is deducted, so the total deduction amount is 510 USD.

Deduction Amount Exceeds Protected Pay Amount

Scenario: A UK employee is issued a court order for the amount of 100 GBP per month. However, protected pay rules defined for the deduction require that the employee take home at least 700 GBP, after all deductions.

Involuntary Deduction Calculation Card: Add a calculation component for a court order and then:

  1. Select the Order Amount Payee.

  2. Set the Frequency to monthly.

  3. Create an Order Amount value, and set the amount to 100,

  4. Create a Protected Pay Amount value, and set the amount to 700.

Payroll Run Results:

  • The amount of the employee's pay subject to the deduction is 750 GBP.

  • A 100 GBP deduction amount would leave only 650 GBP for the final pay amount. Therefore, only 50 GBP is deducted for the month.

  • The remaining balance of 50 GBP is not placed in arrears, based on processing rules defined for this deduction.

Employee Has Multiple Assignments and Payrolls

Scenario: An employee has 2 assignments, both for the same payroll relationship, and is assigned to 2 different payrolls. One of the assignments is on a weekly payroll, and the other assignment is on a monthly payroll. The employer receives a court order to deduct 200 USD per month from the employee's wages. The court order amount must be deducted from all available money, regardless of the payroll. If the total order amount cannot be deducted from the first payroll run, then the remaining balance must be deducted from one or more subsequent runs during the month, until the full amount is paid.

Involuntary Deduction Calculation Card: Add a calculation component for a court order and then:

  1. Select the Order Amount Payee.

  2. Set the Frequency to monthly.

  3. Create an Order Amount value for 200 USD.

Payroll Run Results:

  • During the first weekly payroll run, only 50 USD can be deducted, leaving an amount owed of 150 USD for the month.

  • When the next weekly payroll is run, no deduction can be taken due to insufficient pay. The balance for the month remains 150 USD.

  • The monthly payroll runs before the next weekly payroll is run. The remaining 150 USD owed for the deduction is taken during the monthly payroll run.

  • No money is deducted during the subsequent weekly payroll runs for this month.

Note

If a person has two assignments for different payroll relationships, they would typically be issued two different court orders, one for each employment. In this case, you would add each court order to a different calculation card.

Multiple Orders Exist with Different Protected Pay Amounts

Scenario: A UK employee has 3 court orders, and each has a different protected pay amount.

Deduction Calculation Card: Add 3 calculation components to the employee's calculation card. Set the frequency of each one to monthly. Define protected pay and order amount values for each as shown in this table.


Involuntary Deduction

Protected Pay Amount

Order Amount

Date Received

Child Support 1

500

1000

23 January 2012

Child Support 2

600

1100

2 February 2012

Child Support 3

1000

1200

2 February 2012

Payroll Run Results:

The net amount available for involuntary deductions in the payroll run is 2000 GBP. Based on the processing priority defined for child support payments, the payroll run processes the involuntary deductions in order by date received.

  • Child Support 1 is paid in full, leaving 1000 GBP available for other deductions.

  • Child Support 2 is paid an amount of 400 GBP (1000 less protected pay of 600).

  • Child Support 3 is not paid. The total amount is placed in arrears, based on processing rules defined for the deduction.

Creating Voluntary and Pre-statutory Deductions: Explained

Use the Manage Elements task to create voluntary and pre-statutory deductions, such as pensions. Pensions are managed through calculation cards. Other voluntary deductions, such as gym membership, union membership, and charity donations, are managed through element entries.

The steps to set up these deductions are as follows:

  1. Create the elements.

  2. Create the third-party payees.

  3. Create a third-party payment method for each third-party payee.

  4. Enter the deduction details for each person, which can be done in the following ways, depending on the deduction type and your setup:

  • Create a Benefits and Pensions calculation card.

  • Create an element entry.

  • Load benefit batches.

Create Elements

To create a pensions deduction, select the Pension Plan After Tax secondary classification and the Benefit category. If you want to create pre-statutory deductions, select Pension Plan Pre-Statutory as the secondary classification. These selections ensure that a calculation component is created, which you can add to a Benefits and Pensions calculation card.

To create other voluntary deductions:

  • Select the Standard category. This selection means that you manage these deductions using the Manage Element Entries page.

  • After creating the element, you must add a Payee input value and select Third-Party Payee as the special purpose for this input value. If appropriate, you can enter a default value on the element or element eligibility record to populate the third-party payee details.

Create Third-Party Payees

To create third-party payees use the Manage Third Parties page in the Payment Distribution work area. For pensions, select the Organization payee type and select the Pension Provider party usage code.

Create Third-Party Payment Methods

To create payment methods for all external payees, use the Manage Third-Party Payment Methods task in the Payment Distribution work area.

Enter Deduction Details for Each Person

For pensions create a Benefit and Pension calculation card for the worker, add your new pension calculation component to the card, and enter the payee and other details. If you load your pension information using the Load Benefit Batches process, the payroll application creates the calculation card automatically. Before running this process, you must create an XML file that contains the data you want to transfer to payroll.

For other voluntary deductions, create element entries. If the payee is not defaulted from the element or eligibility record, enter the payee on the element entry.

Entering Calculation Values for Pensions: Points to Consider

Create a Benefits and Pensions calculation card for each worker who pays a pension deduction. On the card, select the calculation component that was created automatically for your pension element, and enter the required contribution amounts and limits, as described in this topic. If you use the Load Benefit Batches process to transfer values from a benefits application, this process creates the calculation cards for you and enters the contribution amounts and limits.

Default Contribution Amounts and Limits

You enter some default contribution amounts and limits when you create the pension element. These default values are stored as calculation value definitions. You can edit the default values using the Manage Calculation Value Definitions page. You can also add a default payee or a separate payee for each employee by entering the payee ID in the Enterable Calculation Values area on the Calculation Cards tab.

Enterable Calculation Values for Pensions

To enter or override a calculation value for one worker, follow these steps:

  1. Open the worker's Benefits and Pension calculation card on the Manage Calculation Cards page.

  2. Add the calculation component for the pension, if it isn't already on the card.

  3. With this calculation component selected, click the Enterable Calculation Values on Calculation Cards tab.

  4. Click Create.

  5. Select the value you want to enter. Typically, you will enter a payee, reference number, and any additional contributions. You can also override any default contribution amounts or limits.

The following table lists the calculation values you can enter.

Note

If the calculation component was created by running the Load Benefit Batches process, you can only enter or override the following values: Payee, Reference Number, and Employee Additional Contribution.


Field

Required

Default Provided at Element Setup

Values

Payee

Y

N

Enter the ID of an organization with the usage of Pension Provider.

Reference Number

Y or N

N

Free text

Depending on the localization rules this field may or may not be required.

Employee Contributions

Y

Y

Percent or flat amount as per element setup. Enter percentages as decimal values.

Additional Employee Contributions

N

N

Percentage or flat amount as per element setup, if additional contributions are allowed.

Minimum Age

N

Y

Numerical age

Maximum Age

N

Y

Numerical age

Maximum Contribution Amount

N

Y

Numerical amount

Minimum Pensionable Earnings

N

Y

Numerical amount

Maximum Pensionable Earnings

N

Y

Numerical amount

Partial Deduction Allowed

Y

Y

Values = Y or N

If the element was set up to allow an employer contribution, you will also see these enterable values:


Calculation Value

Required

Default Provided at Element Setup

Values

Employer Contribution

Y

Y

Percentage or flat amount as per element setup

Minimum Age Limit for Employer Contribution

N

Y

Numerical entry

Maximum Age Limit for Employer Contribution

N

Y

Numerical entry

Maximum Contribution Amount for Employer Contribution

N

Y

Numerical amount

Minimum Pensionable Earnings Limit for Employer Contribution

N

Y

Numerical amount

Maximum Pensionable Earnings Limit for Employer Contribution

N

Y

Numerical amount

Creating Third Parties: Points to Consider

You create third parties when you want to process payments to external organizations and people who are not on the payroll. You can also create predefined third-party organization for payments, such as pension providers or professional bodies, or third-party organizations that do not receive payments, such as disability organizations. When you create third parties, you record the name, address, and contact information, and associate the third parties to employees on their calculation cards or element entries. Third-party types are Person and Organization.

Party Usage Codes

All third parties created on the Manage Third Parties page are also created as trading community members. When you create a third-party person, the application automatically assigns a party usage code of External Payee. There is no other purpose for creating a third-party person aside from associating it with employees to receive payments, such as involuntary deductions. When you create a third-party organization, you can associate it with a party usage code.

Third-party organizations can have the following party usage codes:


Party Usage Code

Purpose

External Payee

Identifies organizations that can be associated with employee calculation cards or element entries, such as County Sheriff for involuntary deductions. Use this party usage code for organizations when the others don't apply.

Payment Issuing Authority

Identifies organizations responsible for issuing instructions for involuntary deductions, such as a tax levy or bankruptcy payment order. An example of a payment issuing authority is a court, agency, or government official that issues a legal process. Payment issuing authorities do not receive payments.

Pension Provider

Identifies organizations that provide pension administration for employee pension deductions.

Professional Body

Identifies organizations entrusted with maintaining oversight of the legitimate practice of a professional occupation. For example, the American Society for Mechanical Engineers in the US.

Bargaining Association

Identifies organizations representing employees in negotiations, for involuntary deductions.

Disability Organization

Identifies organizations that are authorized to make disability assessments. For example, the Royal National Institute of Blind People in the UK. Disability organizations do not receive payments.

Third-Party Payment Methods: Explained

Use the Manage Third-Party Payment Methods task to create payment methods for all external payees who are not on the payroll. A third party can be either a person or an organization. Payments to third parties are normally involuntary deductions, such as court-ordered garnishments or voluntary deductions, such as pension plan or union membership payments.

Before creating a third-party payment method, create the third party using the Manage Third Parties task in the Payment Distribution work area. In addition, the organization payment method that determines the payment source to use for payments must already be defined. Use the Manage Organization Payment Methods task in the Payment Distribution work area to define the payment source for third-party payments.

Payments to Persons

When you create a third-party payment method for a person, you select the legislative data group of the employee whose pay is subject to the deduction, and then select the employee payroll relationship. This makes the third-party person payment method available for selection as a payee on the employee's calculation card.

For example, you might set up an electronic funds transfer (EFT) payment to Mary Smith for a child-support deduction for employee John Smith. When you create the third-party payment method, you select the payroll relationship for John Smith. When you add the child support order to John Smith's involuntary deduction calculation card, you can select Mary Smith in the Order Amount Payee field.

Payments to Organizations

When you create a third-party organization for payments, you select a party usage code. When you create the payment method for the third-party organization, you select the legislative data group of the employees whose pay is subject to the deduction, to make the organization available for selection as a payee on the employee calculation cards.

For example, you might set up an EFT payment method for a County Sheriff that receives a processing fee on garnishment payments. When you create the payment method, you designate the County Sheriff as an External Payee. When you add the garnishment order to the employee's involuntary deduction calculation card, you can select the County Sheriff in the Processing Fee Payee field.

FAQs for Manage Calculation Cards

How do I associate calculation components with tax reporting units and terms or assignments on a personal calculation card?

From the Manage Calculation Cards page in the Payroll Administration or Payroll Calculation work area, click Associations in the Calculation Card Overview pane. Click Create in the Associations section, and then select a tax reporting unit. To associate all calculation components on the card with this tax reporting unit, leave the Calculation Component field blank; otherwise, select the calculation component you want to associate. Note that you must add calculation components before you can create associations for those components.

For persons with multiple terms or assignments, you can identify the terms or assignments that pertain to each calculation component (if supported by your localization and card type). To do so, select an association in the Associations section, and then click Create in the Association Details section. Select the terms or assignment and the associated calculation component. Note that you must create and save an association before you can create association details.

Restriction: Not all localizations or card types use associations. Some use associations but do not support association details.

Why can't I create calculation components or component details for a personal calculation card?

The calculation card definition determines which components and component details you can create. For some card types, you can only create one calculation component of any particular type. If you are trying to create a calculation component that varies based on one or more references (such as a tax that varies based on a person's place of residence), you must select the reference in the Calculation Card Overview pane before you can add the component. You cannot create component details until you create a calculation component.

What happens when an involuntary deduction is fully paid?

You should update the end date of the calculation component on the involuntary deduction calculation card.

Why can't I delete calculation components or component details?

You cannot delete a calculation card or component until you have deleted all its child components and details, starting from the bottom of the hierarchy, in the following order: association details, associations, component details, components, and calculation card. Additional rules and restrictions, specific to your localization, may apply.

Why can't I set an end date on a calculation card or component?

First, make sure you have set the end date for all child records. (End all calculation components before you end a calculation card. End all component details before you end a calculation component. End all association details before you end an association.) Second, make sure that the end date of any parent component is not earlier than the end date of any child. A calculation card's end date must be the same or later than the latest end date of any of its calculation components or component details.

How do I set the end date for a calculation component?

Select the date in the Effective As-of Date field on the Manage Calculation Cards page before you select the End Date action for a calculation component or component detail. Make sure that the end date you enter for any parent component is not earlier than the end date of any child component.

How do I suspend a calculation component?

To suspend a single calculation component, set the end date for the calculation component on the personal calculation card. To suspend all calculation components on a calculation card, set the end date for the calculation card. Note that you must end all component details before you can end the calculation component, and you must end all calculation components before you can end the calculation card. If you want to resume payments at a later date, adjust the end dates accordingly. This is useful, for example, if you need to temporarily suspend a contribution to a charitable organization or retirement fund.

Manage Element Entries

Element Input Values: Explained

An element's input values defines the entry values available on each entry of this element. Each input value has a unit of measure defined, and can have validations and conditions defined to control the data entry of the element entry assigned to a person. For example, an earnings element may have an input value for hours worked, which is defined as required and has a unit of measure of number.

When you create an element, some input values are created automatically if you use Oracle Fusion Global Payroll or Oracle Fusion Global Payroll Interface. For Global Payroll Interface, this applies to earnings elements only. You can create additional input values for any element, as needed.

Input Value Options

For each input value created you can modify these attributes:


Field

Purpose

Display Sequence

Control the order in which the entry value is displayed on element entries.

Special Purpose

Identify how an input value is used, irrespective of the name given to it. For example, it identifies if the input value holds a percentage value, a rate, or third-party payee details. It basically assists with processing the input value based on what type of information it holds.

Unit of Measure

Select the value that describes the type of value the entry value can hold, such as number or character.

Displayed

Select to display the input value on the element entry.

Allow User Entry

Select to enter values on element entries.

Required

Select to make the input value a required entry value on the element entry. If you select Required, you must also select Displayed and Allow User Entry.

Create a Database Item

Select to have a database item created for the input value to make the values available for formulas or system extract.

Default

Enter a value that appears as the default value for this entry value in element entries, if needed.

Apply default at runtime

Select to have the default set on the element entry when the payroll process is run. Changes to the default value are reflected in the next processing after the effective date of the change.

You can replace the default at runtime functionality by manually providing an entry value on the element entry.

Minimum

Enter a minimum value for the element, if needed.

Maximum

Enter a maximum value for the element, if needed.

Validation Formula

Enter a formula that validates the entry value entered on element entries, if needed.

Validation Source

Use with the other input value options to select the valid validation method, such as lookups or formulas.

Lookup Type

Specify a lookup type to provide a list of values for an element entry value. This option is available for input values of type Character only.

Warning or Error

Use when you are validating the input value or entering a minimum or maximum value. It specifies whether a warning or an error displays if the entry fails the validation condition or does not meet the minimum or maximum value indicated.

Reference

Use to associate a balance context with the run result. For example, if you want to associate a context, such as jurisdiction, with an element; create an input value for jurisdiction and select the jurisdiction context in the reference field. Then the run result value of the input value will work as context value when updating the balance.

If you select a reference then the lookup type and validation source values should be automatically set to the reference context. You need to provide the reference field first for the validation source value to be automatically populated.

Note

Once an element is processed, you cannot update certain input value attributes, such as unit of measure. This ensures that changing certain attributes will not invalidate prior results.

Element Entry Methods: Explained

Create element entries for compensation or basic benefits for an employee assignment; for example entering an employee's overtime hours or medical premium deduction amount.

An element entry can be created by one of the following methods:

  • Manual entry on the Manage Element Entries page

  • Batch entry using the batch loader

  • Automatic entry for all eligible workers

  • Automatic entry by other processes

In addition, web services are available for managing element entries.

Manual Entry

Manual element entries are created on the Manage Element Entries page. You can view all of the element entries for a person on the summary page, which can be sorted by element name.

Batch Entry

You can use batch loader workbooks to quickly enter batches of element entries. For example you can enter batches of element entries for:

  • Time card data, such as hourly employees hours worked, overtime, and absences

  • Special nonrecurring earnings or deductions, such as an annual bonus amount

  • A one-time change to recurring earnings or deductions

    For example, the parking garage is closed due to repaving for half the month, so the monthly parking deduction is reduced by half for one month only.

Automatic Entry for All Eligible Workers

Selecting the Automatic Entry option for an element eligibility record initiates a process to create element entries for all eligible workers, and ensures that a record is created during the hire process for any subsequently hired eligible workers. For any element, whether the entries are created automatically or not, you can specify default values.

Automatic Entry by Other Processes

There are certain processes and actions within salary administration, compensation, benefits, and payroll that can generate new element entries. These entries are, however, always maintained through the original processes that generated them. They are not maintained manually on the Manage Element Entries page. For example:

  • If you associate a salary element with a salary basis, an element entry is created automatically for all workers assigned to that salary basis.

  • When you allocate other compensation and benefits or add a payroll component to a personal deduction card, element entries are automatically created.

Element Entry - Entry Values: How They Work with Element Input Values

Input values are defined when an element is created as a means of providing user-defined variables and other values needed to calculate the run results that are used to pay and account for labor costs. Some input values are actually created as a means of managing results output by the calculation. Element entries may contain an entry value or a result value for each of the input values. The only required entry values are for those fields designated as required entries. Depending on the element setup, you can provide an entry value manually, use a default value, or use a formula.

Note

Entry values may be provided by the formula attached to a different element that was processed earlier in the payroll run.

Element entries and input values

Element Entry - Entry Values and Element Input Values

The entry values are determined by how the elements' input values are defined. The table describes examples of how the input value for the element affects the entry value:


Element Input Value

Example and Effect on Element Entries

Default set

This could be used for the amount of a tool allowance that initially provides up to 5.00 USD per week, but you could increase or decrease it, if needed.

The default value is automatically added to the applicable employees. A regular default value is only used to provide an initial value and has no further impact on an entry, even if the default value is changed.

Note

You can designate default values for processing at run time. Such default values are not actually used as entry values until the entry is processed in a run. At that time, the default value defined at the element or element eligibility level is applied. Changes to the default value are reflected in the next processing after the effective date of the change. You can supersede the default value at run time by manually providing an entry value on a person's element entry.

Lookup values entered

For an employee stock purchase plan, you can specify that your organization only allows employees to purchase stock based on 1, 2, 3, 4, or 5 percent of their earnings. Or, for an automobile allowance, you can specify rate codes of A, B, C, or D.

When entering the entry values, you will only be able to select values from the list provided.

Minimum and maximum values

In the same example as above, you can set a minimum and maximum value for the percentage of earnings an employee can contribute to the employee stock purchase plan.

Minimum and maximum values can be used independently also.

Required Input selected

For hourly workers whose hours vary every pay period, such as assembly line workers, you can make the entry of hours required.

If you do not enter a value, you won't be able to save the element.

Special Purpose

The element entries summary on the Manage Person Details page displays the input value you designate as the primary input value in the Special Purpose choice list. You can specify only one input value for the element as the primary input value.

Duration for entries

An element can be specified as recurring or nonrecurring. If an element is recurring, such as salary, the element entry will occur each pay period.

If an element is nonrecurring, such as overtime pay, you will have to enter the entry value every pay period for the element to be paid to an employee.

Automatic entry

For example, everybody in the US needs an element entry to initiate the tax calculation process. The formulas for all of the taxes are attached to the tax element, and it creates indirect results for each of the taxes to which the employee or the employer are subject.

To generate automatically-created entries, you select the Automatic entry option on the eligibility record for the tax element. Saving the eligibility record triggers the process to create entries automatically.

Allowing multiple entries

If an hourly employee's time needs to be reported separately to distinguish between projects or cost centers for which the employee worked, then the regular and overtime hour entries should be defined to allow multiple entries. Elements, such as benefits and bonuses, however, might be limited to one entry per pay period.

You can use this option for hourly workers whose overtime is entered on a weekly basis and you are on a biweekly payroll period.

Validation through a formula

For an annual bonus, you can specify a formula to validate the maximum entry value based on the employee's length of service and current salary.

Determining Entry Values for an Element: Critical Choices

You can select rules for an element to define how you can update its element entries. The options include:

  • Automatic entry

  • Allow multiple entries in same period

  • Additional entry

Automatic Entry

When you create an element, you can select Yes for the question: Should every person eligible for the element automatically receive it? This setting selects the Automatic entry option by default for all eligibility records you create for that element. However, you can override the selection for any specific eligibility record before you save it.

When you select this option, saving the eligibility record initiates a payroll flow to create element entries for all eligible workers. You can view the progress of the process in the Automatic Entry Status field. If the status shows that an error occurred, you can save the eligibility record again to resubmit the flow. If you have access to payroll work areas, you can also monitor the progress of the Generate Automatic Element Entries flow by navigating to the Processes and Reports tab through the Payroll Dashboard, Payroll Checklist work area, or Payroll Calculation work area.

Afterward, any updates to the employment records of eligible workers, including hires and terminations, automatically update, create, or end the element entries, as appropriate.

If you select the Automatic entry option for an eligibility record, provide a default value for any required input values.

Important

An element with the Automatic entry option selected cannot allow multiple entries in the same period.

Allow Multiple Entries in Same Period

This option enables you to give a person more than one entry of the element in the same pay period. For example, if you enter overtime hours on a weekly basis for monthly-paid persons, you might need to give a person five entries of an overtime element in each period.

If you are creating a net-to-gross element, you must select Allow multiple entries in same period.

Additional Entry

This option allows you to add an occasional one-time entry for recurring elements. This additional entry can override or add to the normal entry amount.

Default Values for Element Entries: Critical Choices

There are two ways to automatically add entry values in element entries. In both cases, you can set a default value for an input value, override it for a specific group of employees identified by an element eligibility record, and override it for specific employees on their element entries.

Defining Elements to Provide Default Values at Element Entry Creation

Elements can be defined to automatically enter a default value when the element entry is created. When you create or edit input values, you can specify a default value. If you do not select the Apply default at run time option, then subsequent updates to the default value have no effect on existing element entries. Users can override or change the default value at any time.

Defining Elements to Provide Default Values at Run Time

Elements can be defined to automatically enter a default value at run time. To use this method, enter the default value and select the Apply default at run time option for the input value. If you subsequently update the default value, all element entries containing that default value are updated. However, if the default value was overridden on a specific element entry, updates to the default value do not affect that entry. You can clear the entry if you want to restore the default value.

FAQs for Manage Element Entries

What happens if I override an element entry that has a runtime default set at the element's definition?

If you override it, then any subsequent changes to the default value on the element or element eligibility definition will not affect the element entry. However, you can clear your entry if you want to restore the default value.

Why doesn't my element entry input value display on the Manage Person Details page?

When you create an input value for an element on the Manage Elements page, you must select it as the special purpose element to have it display as the input value for the element entry on the Manage Person Details page.

Manage Personal Payment Methods

Organization Payment Methods: Explained

Organization payment methods identify the payment type and the currency to use for payroll payments to workers and for disbursing employee deductions to third parties.

You must define at least one organization payment method for each type of payment and currency that you use to disburse wages and other compensation to your employees. You can also define rules for validating or processing the distribution of payments when you offer more than one option.

The standard configuration is to have one organization payment method for each combination of legislative data group, payment type, and currency.

Payment Types

Any payment method that you define must belong to one of the payment types that your enterprise supports.

Each payroll must have at least one valid organization payment method for each payment type available to employees on that payroll. There may be more than one payment method with the same payment type.

The most common payment types are:

  • Electronic funds transfer (EFT)

  • Check

  • Cash

Your enterprise may support a different range of types that are appropriate for your localization. For example, some localizations do not allow cash, some do not support checks, and very few support postal money orders.

The names of payment types can vary by localization. For example, in the US, the payment type for EFT is NACHA; in the UK it's BACS, and in Australia it's BECS.

Note

When you select the EFT payment type, you can enter EFT information at the organization payment method level, the payment source level, or both. Entries at payment source level take priority over entries at organization payment level.

Payment Sources

Payment sources associate bank accounts and other sources of funds with organization payment methods. If you are using Oracle Fusion Global Payroll for payroll processing, each organization payment method that is in use must have at least one valid payment source.

For check and EFT payment methods processed by Global Payroll, the payment source must be associated with an active bank account defined in Oracle Fusion Cash Management. If an organization payment method is associated with multiple payment sources, then the payment method rules determine which payment source is to be used for each disbursement.

You can use the same bank account as a payment source in more than one organization payment method. For example, one bank account may be used to pay both check and EFT payments. The application will not prevent specifying the same name for different payment sources, but it's best practice to use different naming for each occurrence.

When you have one organization payment method for each combination of legislative data group and payment type, you can use payment rules to determine the appropriate payment source based on tax reporting unit.

Note

If you are costing your payments, enter cost account information on the Manage Costing of Payment Sources page in the Accounting Distribution work area for cash, liability, and cash clearing accounts if you are reconciling your payments. You can indicate whether you plan to cost cleared payments and external payments, and transfer final accounting entries to general ledger.

Payment Rules

The payment source defined initially is the default payment source. If you add more payment sources, you can add subsidiary information as payment rules. For example, if you have multiple tax reporting units, you can specify which payment source to use for each tax reporting unit.

Having a default payment source ensures that employees are paid if there is a change in tax reporting unit. For example, Company A has multiple independent franchises, each with its own tax reporting unit. If a franchise sells, it will have a new tax reporting unit number, and the payment rule will fail. Instead of issuing errors, payment is made using the default payment source.

You might rather not specify a default payment source when payments cannot be made from the specified payment source in the payment rule. For example, Company B has 30 bank accounts and is very careful not to comingle funds. They leave the default value as No to instead receive notifications that they can resolve manually.

Default Organization Payment Methods

You can define as many organization payment methods as required for your enterprise. When you create a payroll, you can select which of organization payment methods are valid for employees assigned to that payroll. You select one method as the default payment method for the payroll. The default payment method is used to determine how to disburse a payment when an employee does not have any personal payment methods specified.

Note

The application does not support EFT payment methods as default payment methods because each payee must have a personal payment method with account information to know where the money will be deposited.

Relationship to Other Objects

You select organization payment methods when defining other objects, such as payroll definitions, third-party payment methods, and personal payment methods. Organization payment methods are only available for selection if they are effective as of the date the object is being defined or updated.

For example, if you create a payroll definition effective as of 4/1/2012 and want to associate a specific organization payment method as the default, the organization payment method must have an effective start date on or before 4/1/2012. Similarly, when updating or correcting objects to change the organization payment method, the organization must have an effective start date on or before the effective date of the change.

The functional relationship of organization payment methods with other objects is described in this table.


Object

Functional Relationship

Personal Payment Method

Associates a person to a specific organization method. If the payment type is EFT, the person's bank information is included in the personal payment method.

Employees manage personal payment methods from their portrait. Payroll managers, coordinators, and administrators use the Manage Personal Payment Methods task on the Payment Distribution work area.

Third-Party Payment Method

Enables separate payment information for payments to third parties who are not on the payroll.

Payments to third parties, such as garnishments or other involuntary deductions, are typically check payments processed separately from the payroll.

To manage third-party payment methods, payroll managers and administrators use the Manage Third-Party Payment Methods task on the Payment Distribution work area.

Payroll Definition

Establishes the default payment method for payments to employees who have no personal payment method defined.

To manage payroll definitions, payroll managers and administrators use the Manage Payroll Definitions task on the Payroll Calculation work area.

Run-Type Payment Method

Overrides a payroll's default payment method for payments to employees with no personal payment method defined.

For example, your regular payroll is by EFT but you issue check bonuses once a year. Using the Separate Payment run type, the payment method will overwrite the one of the payroll. However, if a personal payment method of type EFT has been defined for any employee on the payroll, the application will use the personal payment method instead.

To manage run type payment methods, payroll managers and administrators use the Manage Run Types task on the Payroll Calculation work area.

Splitting Up Payroll Payments: Examples

There are multiple ways you can define personal payment methods to allocate payroll payments. The following scenarios illustrate how you can split up payments:

Using Fixed Amount Payments

Barbara Franklin wants to save 600 USD before the next holiday season and wants the money transferred electronically as part of her regular payroll payment processing. Barbara is paid semimonthly and can afford to put aside 100 USD each payroll period. At the time when Barbara wants the transfers to start, she adds an electronic funds transfer (EFT) payment method for her savings account, and sets the amount to 100 USD.

Because Barbara's net payment amount is approximately 1,000 USD each payroll period, the remaining amount of approximately 900 USD will be paid using her default payment method, which transfers her payroll payment to her checking account. Right before the holiday season, when Barbara decides to stop the transfers to her savings account, she deletes the payment method.

Using Percentage Payments

Oscar Bonham has a college fund set up for his children and wants to contribute to it each payroll period. Because Oscar frequently receives bonuses and sales commissions his net payment amount is always changing, so he decides to add a payment method that allocates four percent of his pay to the fund. By using a percentage rather than a fixed amount, Oscar can contribute to the fund at the same rate he earns.

Using a Combination of Payments

Jim McKee works in Arizona, but his wife and children live in Texas. Jim wants 900 USD each payroll period to be transferred to his checking account for his wife's household expenses in Texas, a percentage transferred to his children's college fund, and the remainder paid to him by check for his expenses in Arizona. Because his default payment method is already by check payment, he adds two EFT payment methods, one with his checking account bank details and one the college fund bank account details.

FAQs for Manage Personal Payment Methods

Why can't I delete, end date, or change the processing order of a personal payment method?

The application prevents any date-effective changes that would cause an overlap of effective records for the default payment method. If there are multiple records for the payment method you are trying to change, ensure that your change would result in a valid default payment method.

Payment methods defined for a person contain date-effective records that allow changes to occur at different points in time. For example, you can define a payment method in advance to be used only from the future date that you specify.

A person's payroll relationship must have one and only one default payment method in effect at any point in time. If a person has multiple payroll relationships, there must be a default payment method for each payroll relationship. The application protects the integrity of the default payment method.

Why can't I add or edit banks and branches for personal payment methods?

You cannot edit bank and branch information on the Manage Personal Payment Methods page. Contact your help desk for assistance. You may be able to create banks and branches, if you have the appropriate security privileges.

Manage Payroll Relationships

Payroll Relationships: Explained

A payroll relationship exists between a person and a payroll statutory unit, which is the legal entity responsible for employee payment. Payroll relationships group person records based on payroll regulatory and statutory calculation and reporting requirements. This grouping enables the aggregation of balances across multiple employment terms and assignment records.

Important aspects of payroll relationships include:

  • Creation of payroll relationship records

  • Payroll employment model

  • Payroll calculation at the payroll relationship level

Creation of Payroll Relationship Records

When an HR administrator processes a new hire, the application automatically creates a payroll relationship record for that person. As an administrator adds employment terms or assignments for that person, the application uses several factors, such as system person type, payroll statutory unit, and country-specific relationship mapping rules, to determine whether to create a new payroll relationship record. Predefined mapping rules for payroll relationships also define the payroll relationship types that indicate whether payroll processing can occur. These predefined rules can vary by localization. For example, in the US, the Employee person type maps to the payroll relationship type that is defined to be processed in payroll runs, whereas the Contingent Worker person type maps to a payroll relationship type that is not to be processed in payroll runs.

Note

There is no direct association between payroll relationships and work relationships.

Payroll Employment Model

The structure of the payroll employment model provides the capability to have employment terms and assignments that can be linked together for calculations based on the payroll statutory unit. Therefore, information must be stored at the various levels of the payroll employment model. This information is used by the various payroll processes.

Your enterprise might be defined to use two-tier and three-tier employment models. The three payroll employment levels are:

  • Payroll relationship

    The payroll relationship is the highest level for which to accumulate balances. Elements assigned at the payroll relationship level are processed in every payroll run. Payroll relationship elements are typically deduction elements, such as tax, pension, social insurance, or court orders.

    Payroll relationships are also used outside of Oracle Fusion Global Payroll to facilitate the extraction of data from HCM that is sent to a third-party payroll provider for payroll processing. For example, payroll coordinators use Oracle Fusion Global Payroll Interface to extract benefits data from HCM and send that data through payroll relationships, along with payroll-related data.

  • Employment terms (three-tier model only)

    Employment terms are commonly used as a middle layer in the payroll employment model to help manage multiple assignments and to satisfy tax and reporting requirements at a lower level than the payroll statutory unit. Elements assigned at the employment terms level are typically salary, pension, or social insurance elements that vary based upon the employment terms.

    Note

    Employees with multiple terms or assignments that are paid on payrolls using different frequencies, such as Monthly and Semimonthly, must have different employment terms or assignments for each payroll. In a two-tier configuration, payrolls can be assigned to the assignment record; in a three-tier configuration, payrolls can be assigned to the terms record.

  • Assignment

    Because the assignment is the lowest level of the payroll employment model, elements assigned at this level usually vary from one assignment to another or are specifically for a single assignment. Elements at the Assignment level are typically used for monetary terms and conditions, such as overtime rules, rates, union dues, or bonuses.

The following figure illustrates the comparison between the HR employment model and the payroll employment model in a US example with two legal employers belonging to one payroll statutory unit. In this example, David Ellis has two different employment terms and assignments, and therefore has two work relationships in the HR employment model and one payroll relationship in the payroll employment model.

Payroll employment model

Payroll Calculation

Payroll relationships represent the association between a person and the payroll statutory unit. Payroll processing always occurs at the payroll relationship level. This means that to access the results of any payroll process, such as calculation or payment distribution, you start by selecting a payroll relationship record.

Note

Although a person may have multiple payroll relationships, payroll balances for that person cannot span payroll relationships.

Transferring Payrolls: Example

The following scenario illustrates the most common time when you would transfer a person's payroll:

Transferring a Person's Payroll from Weekly to Semimonthly

Carrie Smith is currently a part-time temporary employee, and her payroll is processed on a weekly basis. Carrie recently accepted an offer to become a full-time permanent employee in the same position, starting one month from now. You can update terms or assignment record to reflect Carrie's new employment status by transferring Carrie to a payroll appropriate for a full-time permanent employee, such as Monthly or Semimonthly, and setting the effective date for the payroll transfer to the start date one month from now.

Element Duration Dates: Explained

When you hire, terminate, or add or change an employee's payroll, element duration dates control when element entries for an employee can start or end. You can use the predefined element duration dates or create additional time definitions if required. It is important to understand the predefined dates, how and when they are populated, and how they affect payroll processing.

Predefined element duration dates are:

  • First standard earnings date

  • Last standard earnings date

  • Last standard process date

  • Final close date

You can view and manage these dates on the Manage Payroll Relationships page.

First Standard Earnings Date

This is the date on which standard earnings start accumulating. The application sets this date automatically when one of the following actions occurs.


Action

First Standard Earnings Date Value

Hire an employee (create an assignment or terms record for the employee)

Hire date

Add a payroll (on the Manage Payroll Relationship page)

Payroll add date

Transfer an existing employee to a different payroll (on the Manage Payroll Relationships page)

Transfer date

You cannot change the first standard earnings date.

Last Standard Earnings Date

This is the date on which standard earnings stop accumulating. The application sets this date automatically when one of the following actions occurs.


Action

Last Standard Earnings Date Value

End one or more assignments or terms without ending the payroll relationship.

Termination date (end date of the objects being terminated)

End all assignments and terms and the payroll relationship

Termination date (end date of the objects being terminated). If multiple terms are ended, the last standard earnings date at the payroll relationship level is set to the latest last standard earnings date for all terms records.

End a payroll for an employee (on the Manage Payroll Relationship page)

Payroll end date

Transfer an existing employee to a different payroll (on the Manage Payroll Relationships page)

The day before the transfer date. For example, if the transfer date is January 13, then the first standard earnings date of the new payroll is January 13, and the last standard earnings date of the old payroll is January 12. The last standard earnings date is set at the level (assignment or terms) where the payroll is assigned.

You cannot change the last standard earnings date.

Last Standard Process Date

This is the last date on which element entries are considered for normal processing in a payroll run. After this date, nonrecurring element entries can be processed up to the final close date. The application sets this date automatically when one of the following actions occurs.


Action

Last Standard Process Date Value

End one or more assignments or terms without ending the payroll relationship.

Last day of the payroll period in which the terms or assignment is ended

End all assignments and terms and the payroll relationship

Last day of the payroll period in which the terms or assignment is ended. If multiple terms are ended, the last standard process date at the payroll relationship level is set to the latest last standard process date for all terms records.

End a payroll for an employee (on the Manage Payroll Relationship page)

Last day of the payroll period in which the payroll is ended

Transfer an existing employee to a different payroll (on the Manage Payroll Relationships page)

Last day of the payroll period in which the person is transferred. The last standard process date is set at the level (assignment or terms) where the payroll is assigned.

You can modify the last standard process date on the Manage Payroll Relationships page. In most cases, you should not need to modify the last standard process date.

Final Close Date

The last date on which element entries can be processed in a payroll run. This is the last effective date of the payroll record. The application does not set a final close date automatically. By default, element entries stay open for processing indefinitely. If you want to limit the length of time that element entries can stay open for processing, you can enter a final close date on the Manage Payroll Relationship page. For example, you can set a final close date to ensure that terminated assignments are not considered for processing after a designated period of time, such as one year after the termination date.

Note

When you set a final close date, the application automatically sets the end date of the payroll record. The end date is not set when you use the End Payroll action.

The final close date at the assignment level cannot be later than the final close date at the terms or payroll relationship level. The final close date at the terms level cannot be later than the final close date at the payroll relationship level.

Payroll Relationship Rules: Explained

The payroll relationship rule determines what happens when the last employment terms record for a payroll relationship is terminated. The value of this rule is predefined for each localization and cannot be changed.

Each localization uses one of the following payroll relationship rules:

  • Lifetime rule

  • Continuous period of service rule

  • Independent rule

Lifetime Rule

When an employment terms record is terminated, the associated payroll relationship remains active, but is no longer associated with an active terms record.

Under this rule, any subsequent terms of the same type and for the same payroll statutory unit will be associated with the existing payroll relationship. This rule is used in Canada, Germany, Netherlands, Singapore, and the United States.

Continuous Period of Service Rule

When the last active employment terms record associated with a payroll relationship is terminated, the payroll relationship is also terminated. (Its status is set to inactive on the day following the HR termination date.)

Under this rule, when HR creates a new employment terms, the application looks for an existing payroll relationship of the same type and for the same payroll statutory unit. If one does not exist, a new payroll relationship is created. If one exists, the last standard earnings date of the payroll relationship is validated and:

  • If it is later than the new terms start date, the terms record is attached to it.

  • If it is earlier than the new terms start date, a new payroll relationship is created.

This rule is used in most localizations, including Australia, China, France, Hong Kong, India, Kuwait, Mexico, Saudi Arabia, Switzerland, United Arab Emirates, and the United Kingdom.

Independent Rule

When HR terminates an employment terms record, the associated payroll relationship is also terminated. (Its status is set to inactive on the day following the HR termination date.)

Under this rule, each new employment terms record results in the creation of a payroll relationship. Under this rule, each payroll relationship is associated with only one employment terms record.

Setting Element Duration Dates for Terminations: Examples

These scenarios illustrate how to set the last standard process date and final close date for element entries at the assignment and terms levels. (You cannot change the last standard earnings date.)

Set the Final Close Date to One Year After Termination

An employee with a single assignment is terminated on June 4. The employee is assigned to a weekly payroll with a period end date of June 10. On termination, the last standard earnings date is set automatically to June 4. The last standard process date is set to June 10. The application does not set a final close date. To limit the number of employees considered for processing each payroll period, you want to set the final close one year after termination:

  1. Navigate to the Manage Payroll Relationship page in the Payroll Calculation work area.

  2. Search for and open the payroll relationship for this employee.

  3. In the payroll employment tree, click the assignment.

    The payroll for this assignment appears in the Payroll Details section. The last standard earnings date, last standard process date, and final close dates appear in the Element Duration Dates section. The final close date is blank, which means that no date has been assigned.

    Note

    In this example, a two-tier employment model is implemented, so payrolls are assigned at the assignment level. In a three-tier employment model, payrolls are assigned at the terms level, so you would click the terms in the employment tree to manage element duration dates.

  4. Select the final close date, and click Edit.

  5. Select June 30 of the following year and save.

Note

The latest entry date defined for the severance payment element determines the last date you can enter element entry details for the terminated employee's severance payment. You can view the latest entry date setting on the Element Summary page (Manage Elements task in the Payroll Calculation work area).

Extend the Last Standard Process Date to the End of the Month

An employee has two terms and is assigned to multiple concurrent payrolls, one weekly and one monthly. One of the terms, assigned to the weekly payroll, is terminated on June 10. The default last standard process date is set to June 15, but you want to extend it to allow compensation payments to be made up to June 30, based on the employee's termination package. To modify the last standard process date at the terms level for the weekly payroll:

  1. Navigate to the Manage Payroll Relationship page in the Payroll Calculation work area.

  2. Search for and open the payroll relationship for this employee.

  3. In the payroll employment tree, click the terms that were terminated.

  4. In the Payroll Details section, select the weekly payroll.

  5. In the Element Duration Dates section, select the last standard process date and then click Edit.

  6. Select June 30 as the date and save.

Terminations: How They Affect Payroll Processing

When a line manager or human resources specialist initiates a termination, dates are set automatically that control when the person's element entries end. Payroll managers and other users with the appropriate security privileges can make date adjustments, such as set the final close date or last standard process date. Payroll assignments and terms records are automatically made inactive, or the payroll relationship ended, depending on the type of HR termination and the payroll relationship rule used by the localization.

Settings That Affect Processing

An element's latest entry date rule, which is defined when the element is created, determines the last date that you can create or modify entry values for that element. An element's latest entry date rule can be one of the standard element duration dates (last standard earnings date, last standard process date, or final close date) or a user-defined time definition rule, such as a return date on a company car.

When you are notified of a termination, you can enter a final close date for the employee's payroll records. The last standard earnings date and the last standard process date are set automatically at the appropriate level in the employment hierarchy (payroll relationship, terms, or assignment), based on the type of termination. You can adjust the last standard process date, although this is not normally required. You cannot change the last standard earnings date.

Note

In a three-tier employment model, the payroll is assigned at the terms level; in a two-tier model, the payroll is assigned at the assignment level. There is a separate set of element duration dates for each payroll at these levels. If there are multiple assigned payrolls, the latest last standard process date at each level is set to the latest last standard process date for all active payroll records.

How Terminations Are Processed

When an assignment, employment terms record, or entire work relationship is terminated, the payroll application terminates the appropriate payroll records. The type of HR termination determines which payroll objects are terminated.


Type of Termination

Action Taken on Payroll Objects

End assignment

Sets assignment status to inactive.

End employment terms

Sets the status of payroll terms record to inactive. If the last terms record for a payroll relationship is terminated, the payroll relationship may be terminated, depending on which payroll relationship rule is used by your localization.

End entire work relationship

Sets the status of all associated payroll terms records and assignments to inactive. The payroll relationship may be terminated, depending on which payroll relationship rule is used by your localization.

Termination Flows

When you are notified of a termination, you might perform the following tasks, either manually or as part of a payroll termination flow:

  • Update element entries, for example, enter severance payment details on the Manage Element Entries page

  • Verify termination dates and element duration dates on the Manage Payroll Relationships page.

  • Update personal calculation cards to provide information required for tax reporting on the Manage Calculation Cards page.

If you use Oracle Fusion Global Payroll for payroll processing, your enterprise may have defined a custom payroll termination flow that includes one or more tasks such as the ones listed above. Additional payroll termination tasks may also occur, either automatically or manually, based on the payroll termination flows defined for your legislation. You can use the:

  • Payroll Dashboard to view the details of payroll termination flow tasks and navigate to any items requiring attention.

  • Payroll Checklist to view the status and results of tasks in an active flow.

FAQs for Manage Payroll Relationships

How can I add or transfer a person's payroll?

To make changes to a person's payroll relationship, such as assigning a worker to a payroll or transferring a worker to another payroll, look for Payroll Details on the person's Manage Payroll Relationships page. You may want to select a terms or assignment record on the Payroll Employment Tree to display the appropriate Payroll Details region.

How can I set the final close date or last standard process date for a terminated employee?

You set element duration dates on the terminated employee's payroll relationship record. Use the Manage Payroll Relationship task and click the employee's assignment to view or update the final close date or the last standard process date.

Manage Costing for a Person

Costing Setup for a Person: Explained

Manage costing for a person at the assignment, terms, and payroll relationship levels of the employment hierarchy. Costing elements at the employment level costs all the elements the person is eligible to receive at that level. If this costing does not apply to a specific element, you can override it by creating separate costing for the element. You can allocate the entire cost to a single account or divide the cost over several accounts.

Costing entered at the person level overrides the same segments defined at other levels of the costing hierarchy, except for priority accounts and cost accounts entered for element entries. You can refer to the tables in the contextual area to determine which segments are available for entry at each level of the costing hierarchy.

Most large enterprises do not capture costing at the person level because of the maintenance effort. Costing at a person level gives you flexibility when you need to closely monitor costs for a group of employees. For example, if you start a new project, and want to assess and track the costs incurred by the salaried employees reassigned temporarily to the project, you might set up costing at the person level for these employees.

Setting Up Costing for a Person: Worked Example

This example demonstrates how to allocate costing at the assignment level for a person who divides their time between two managers at different cost centers. This example also shows how to override costing at the assignment level for an element so that it is costed in its entirety.

The following table summarizes the key decisions for this scenario.


Decisions to Consider

In this Example

How long will the employee split the time between cost centers?

January 1, 2013 to June 30, 2013

What percentage of the employee's costs are allocated to each cost center?

40 Percent to Sales Cost Center 4153360 Percent to Marketing Cost Center 41577

Should any elements not be divided between the two cost centers?

Parking Allowance

In this example, Joe creates presentations for the marketing division. You learn that for the next 6 months Joe will spend 40 percent of his time creating presentations for the sales division. The sales and marketing managers have different cost centers. You must split the costs for Joe's assignment between the two cost centers, except for Joe's parking allowance, which you continue to cost to the marketing division. First you enter the cost centers and percentages for costing the assignment, then you create override costing for the Parking Allowance element so that its costs are allocated to a single cost center.

Create Costing for the Assignment

  1. In the Accounting Distribution work area, click the Manage Costing for Persons task.
  2. On the Manage Costing for Persons page, search for Joe's record.
  3. In the Search Results section, click Joe's name.
  4. On the Manage Costing for a Person page, in the Costing for a Person Overview section, select Joe's assignment.
  5. From the Actions menu, select Create Costing.
  6. In the Create Costing dialog, enter January 1, 2013 for date the costing takes effect.
  7. In the Create Cost Accounts: Assignment section, click Add.
  8. Click the Add again to add a second row.
  9. In the Create Cost Accounts table, complete the fields as shown in this table.

    Percent

    Cost Center

    40

    41533

    60

    41577


  10. Click Save.

Create Costing for an Element

  1. In the Costing for a Person Overview section, select Joe's assignment.
  2. From the Actions menu, select Create Costing of Element.
  3. In the Create Costing window, enter January 1, 2013 as the date the costing takes effect.
  4. In the Create Cost Accounts: Assignment section, select the Parking Allowance element.
  5. In the Create Cost Accounts: Assignment section, click Add .
  6. In the Create Cost Accounts table, complete the fields as shown in this table.

    Percent

    Cost Center

    100

    41577


  7. Click Save.
  8. Click Submit.

    The costing remains in effect until you end the record with the date the allocation no longer applies.