Understanding Global Payroll for Hong Kong

This chapter provides an overview of Global Payroll for Hong Kong and discusses:

• Global Payroll for Hong Kong business processes.

• Delivered elements for Hong Kong.

• Delivered elements naming convention.

• Archiving data for Global Payroll for Hong Kong.

Understanding Global Payroll for Hong Kong

Global Payroll for Hong Kong is a country extension of the core Global Payroll application. It provides the payroll rules, elements, and absence processes needed to run a Hong Kong payroll.

Important! If you want to use the delivered rules for this country extension, we recommend that you use only employment instances in PeopleSoft Enterprise Human Resources.

Global Payroll for Hong Kong Business Processes

Global Payroll for Hong Kong supports the following business processes:

• Inland Revenue Reporting.

  This feature satisfies the requirements of the Hong Kong Inland Revenue Department (IRD). Features include the ability to capture, generate, and maintain both employee and company identification and biographical data that support the reporting requirements of the Hong Kong Inland Revenue Department (IRD).

  PeopleSoft provides you with the ability to create a flat file that complies with Hong Kong Inland Revenue Department requirements for the submission of electronic files. A Global Payroll core application process creates the output using a file layout object that has the same structure as that of the electronic file expected by the IRD of Hong Kong. Before you generate, review, and print Inland Revenue forms and reports, you can set up additional report data. Employee departure details, housing and quarters details, and employer details are required for specific Inland Revenue reports. You can also associate multiple payroll accumulators with report elements and allocate starting sheet numbers. After you set up and generate the data required for Inland Revenue reporting and generate those forms, you can review the results and maintain available fields. The IR56 Inquiry component enables you to view and amend the generated IR56 data.

• Mandatory Provident Fund.

  This feature supports the administrative and reporting requirements of Mandatory Provident Fund (MPF) administration and maintenance and provides support for both employee and employer payments to a nominated fund in accordance with the calculation of eligibility rules for MPF legislation. These deduction rules cover legislative MPF requirements such as permitted period processing, age eligibility, and the contribution holiday rule. The system accommodates MPF exemption rules and limits by enabling you to define casual employees for MPF contributions, exclude specific employees from MPF calculations and apply maximum and minimum limits to MPF contributions.

  MPF reports such as the Remittance Statement and New/Terminated Employees Report enable you to manage your contributions. You can also set up recipient MPF commission and scheme details for your MPF reports.

• Payslips.

  The design of the payslip feature enables you to create and control payslips that display the data that you want, where you want it and in the format that you want. You can override templates at lower levels, so you do not have to create multiple templates to cover every payslip scenario that you may have.

• Payroll Reporting.

  In addition to the reports delivered with Global Payroll, the Hong Kong country extension comes with a set of reports to support business requirements. Reports included in the country extension are:

  • Payroll Register

  • Reconciliation Report

  • Pay Component Register

• Absence and Termination.

  Global Payroll for Hong Kong delivers predefined rules for processing absence payments, such as annual leave, long service leave, sick leave, maternity leave, and jury leave. We also deliver rules to calculate absence entitlements on termination, including rules for the payment of unused annual leave, 13th month payment, outstanding deduction recovery, severance, and long service. You can modify many of these rules to reflect absence and termination policies that are specific to the organization or to labor agreements with employees.

  To demonstrate how Global Payroll can process typical absence requirements in Hong Kong, PeopleSoft provides 8 absence entitlement elements and 10 absence take elements.

• Banking and Recipient Processing.

  This feature supports net payment (employee salary) direct deposits and recipient payments using the electronic file (HSBC) format used by the Hong Kong and Shanghai Corporation Bank. Global Payroll for Hong Kong generates electronic file outputs to credit employee salaries and reports this data to the recipient. The Global Payroll banking process brings together payroll data, pay entity source bank data, and payee or recipient bank data. The EFT file creation process extracts data compiled by the banking process according to the content you want in the EFT file that you are creating, merges it with data provided by the Hong Kong country extension and creates the file for transmission.

See Also

Understanding Report Data Generation

Printing and Viewing Payslips

Administering Mandatory Provident Fund Contributions

Running Banking and Recipient Processes

Defining Absence Rules

Setting Up Inland Revenue Reports

Delivered Elements for Hong Kong

This section discusses:

• Creation of delivered elements.

• Element ownership and maintenance.

Creation of Delivered Elements

Global Payroll defines each business process for Hong Kong in terms of delivered elements and rules. Some of these elements and rules are specifically designed to meet legislative requirements, while others support common or “customary” payroll practices.

All of the elements and rules delivered as part of the country extension were created using the core application—the same application you use to create additional elements or rules and configure existing elements delivered as part of the Global Payroll system. Because the tools needed to redefine or create new payroll elements are fully documented in the core application PeopleBook, we do not reproduce this information here. Instead, we briefly review the relationship between the core application (which contains the tools you need to define your own elements and rules) and the country extensions (which contain country-specific rules and elements defined by PeopleSoft).

The core application has the following characteristics:

• It consists of a payroll rules engine—a flexible tool that enables users to define the rules and elements of their payroll system and execute payroll and absence calculations. Global Payroll does not embed payroll-specific logic or computations in application code. Instead, it specifies all business application logic, such as earnings, deductions, absences, and accumulators, in terms of payroll rules and elements. Global Payroll enables the user to enter and maintain payroll rules through a set of pages and offers a comprehensive set of features that enable the user to work in their preferred language or currency.

• It provides a payroll processing framework—a flexible way to define and execute payroll and absence processing flows, such as calendars, run types, pay periods, and process lists.

Country extensions have the following characteristics:

• They are built using the core application.

• They consist of statutory and customary objects (country-specific payroll rules, elements, payroll processes, reports, pages, and self-service applications).

PeopleSoft delivers a query that you can run to view the names of all delivered elements designed for Hong Kong. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 9.0 PeopleBook.

See Also

Understanding How to View Delivered Elements

Element Ownership and Maintenance

The delivered elements and rules of your Global Payroll country extension can be classified according to whether they are owned and maintained by the customer or by PeopleSoft. Some elements and rules are maintained exclusively by PeopleSoft and cannot be modified, while others can be configured to meet requirements unique to each organization.

Understanding Element Ownership in Global Payroll

There are five categories of element ownership:

Understanding Element Ownership in Global Payroll for Hong Kong

Of the five ownership categories listed in the previous section, only PS Delivered/Maintained and PS Delivered/Not Maintained are used to define Hong Kong elements. Although Global Payroll for Hong Kong delivers some elements as PS Delivered/Maintained, the large majority of elements are designated PS Delivered/Not Maintained. This enables you to modify, update, and reconfigure the delivered elements to meet needs that are specific to your organization.

In the following table of elements supplied with Global Payroll for Hong Kong, the ownership of all elements is PS Delivered/Not Maintained with exceptions shown in column 2.

Note. These element types have no exceptions so are not shown in the table: absence entitlements, accumulators, arrays, absence takes, brackets, durations, dates, element groups, earnings, generation controls, proration rules, processes, sections, and writable arrays.

See Also

Getting Started with Global Payroll

Delivered Elements Naming Convention

This section discusses:

• Element names.

• Functional area codes.

• Element type codes (PIN_TYPE).

• Viewing delivered elements.

Element Names

One of the keys to understanding how delivered payroll elements function in the system is to understand their names. Understanding the naming convention developed for PeopleSoft-delivered elements can help you determine how an element is used, the element type, and even the functional area it serves. Depending on whether the element is a primary element, a component of a primary element, or a supporting element, one of the following naming conventions applies.

Supporting Elements

For supporting elements, such as variables, formulas, dates, durations, and so on, PeopleSoft uses the following naming convention: FFF (or FF) TT NAME.

• FFF (or FF): Functional Area Code (see Functional Area Codes for more information).

• TT: Type of Supporting Element (see List Element Type Codes (PIN_TYPE) for more information).

• NAME (or NAME NAME): An indication of what the element does or is for. (The number of NAME components may vary.)

For example, in the MPF variable MPF VR START DATE, MPF stands for Mandatory Provident Fund, VR stands for variable and START DATE stands for start date. The element's thirty character (maximum) description (DESCR) provides a fuller explanation of what the element does or is for.

Primary Elements

Primary elements, such as earnings, deductions, absence take, and absence entitlement elements often do not contain functional area codes or element type codes in their names. This is because primary elements have names, based on Hong Kong terms, that identify their function and element type without the use of additional codes. For example, the name of the earning element 13MTHPAY clearly identifies this element as an earning, and more specifically, as a thirteenth month (13MTH) payment (PAY).

Additional Clues to the Use of Hong Kong Elements

Many Hong Kong elements contain abbreviations that provide clues (beyond those provided by the functional area codes or element type codes) to their use in the system. For example, consider the following duration element: TER DR DY IN SERV. The functional area code TER indicates that this element is used for termination elements, and the element type code DR identifies it as a duration element. The abbreviations DY, IN and SERV provide additional clues about how the element measures periods of time. The duration is in days (DY) in (IN) service (SERV). As you become more familiar with the payroll rules created for Hong Kong, these abbreviations will help you to further identify and understand the role played by each element.

The following table lists the most common abbreviations used in the names of Hong Kong elements.

Component Names (Suffixes)

In Global Payroll for Hong Kong, suffixes are used to name the components of earning and deduction elements. For example, when you create an earning or deduction element in Global Payroll, you define the components that make up the element, such as base, rate, unit, and percentage. The system automatically generates the components and accumulators for the element based on the calculation rule or accumulator periods. The system also names the components and accumulators by appending a suffix to the element's name.

For example, let's say you define the earning element named EARN1 with the following calculation rule:

EARN1 = Rate x Unit

The system automatically creates two additional elements for the components in the calculation rule: a rate element called EARN1_RATE and a unit element called EARN1_UNIT. In Global Payroll for Hong Kong, all suffixes fall into one of the following types:

• Separator.

• Earnings and deductions and absence entitlement component suffixes.

• Earnings and deductions and absence entitlement accumulator suffixes.

• Deduction arrears component suffixes.

• Deduction arrears accumulator suffixes.

• Recipient suffixes.

Note. To view the suffixes used for Hong Kong, navigate to Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, System Settings, Element Suffixes.

Functional Area Codes

The following table contains the functional area codes used in the names of Hong Kong elements:

See Also

Defining General Element Information

Element Type Codes (PIN_TYPE)

Many element types, particularly supporting elements, are identified by the type code in their name. For example, the FM in MPF FM POST EEMN1 identifies the element as a formula.

You can see all the element types in the search page when you navigate to Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, System Settings, Element Types.Because not all element types are delivered for Hong Kong, not all of these codes appear in the names of Hong Kong elements.

See Also

Defining General Element Information

Viewing Delivered Elements

PeopleSoft delivers a query that you can run to view the names of all delivered elements designed for Hong Kong. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 9.0 PeopleBook.

See Also

Understanding How to View Delivered Elements

Archiving Data for Global Payroll for Hong Kong

PeopleSoft Enterprise Global Payroll for Hong Kong generates a large amount of result data. To keep the amount of saved data manageable, it can be helpful to archive it periodically. PeopleSoft PeopleTools delivers an archiving tool called the Data Archive Manager. To aid you in archiving your result data using the Data Archive Manager, PeopleSoft Global Payroll for Hong Kong delivers a predefined archive object (GPHK_RSLT_ARCHIVE) and archive template (GPHKRSLT). The delivered archive template uses queries that select data by calendar group ID (CAL_RUN_ID field).

Note. Please use extreme caution when making changes to delivered archive objects, queries, or templates. Any modifications can result in the loss of important data.

See Archiving Data.