Understanding Global Payroll for Brazil

This chapter discusses:

• Global Payroll for Brazil.

• Global Payroll for Brazil business processes.

• Delivered elements for Brazil.

• Naming convention for delivered elements.

• Data archiving.

• How to view delivered elements.

Global Payroll for Brazil

Global Payroll for Brazil is a "country extension" of the core Global Payroll application. It provides you with the payroll rules, elements, and absence processes needed to run a Brazilian payroll.

Global Payroll for Brazil Business Processes

Global Payroll for Brazil supports the following business processes:

• 13th Salary

  Global Payroll for Brazil enables you to make 13th salary (Christmas bonus) payments to your payees. The system provides 13th salary parameters to define possible variations in 13th salary payment. The system also enables you to decide when to pay the 13th Salary first installment.

• Vacations

  Global Payroll for Brazil enables you to record and track vacations. You can generate vacation entitlements, create mass vacation takes, handle negative entitlement balances, track accrued vacation premiums for financial reporting, process vacation pay, and generate a vacation payslip.

• Average Salary

  Global Payroll for Brazil supports the addition of an allowance (based on the employee's average variable pay) to vacation, termination, 13th salary, or maternity pay for employees who receive variable compensation. To determine which employees are eligible for average salary calculations, you set up the eligibility rules, based on union rules and the Consolidated Labor Laws (CLT). Before calculating average salary, you can specify the period of time to consider and whether you want the average salary calculations to be adjusted for inflation.

• Termination Pay

  You can calculate the final check amount for terminated employees. The system enables you to define different termination legal versions and which earnings/deductions are considered in each version. You can also define which termination versions are linked with each job/action reason.

• Payslips

  Global Payroll for Brazil enables you to print payslips for weekly and monthly salaries, 13th salaries, and vacations. Because the format of payslips varies greatly from one company to another, an example of a payroll payslip and a vacation payslip are provided as a reference when creating your own payslips. You can define the criteria for printing payslips, so that they display exactly the information you require. You can prioritize the sort criteria and select the earnings, deductions, and calculation bases you want to include in the payslip.

• Banking

  Using this optional business process, you can pay employees using electronic transfers. The system enables you to set up different bank layouts for file transfers. After you run a payroll, Global Payroll for Brazil generates an EFT flat file that instructs the bank how to distribute the funds you send to them. The process also generates a printed report of payment details. Global Payroll for Brazil supports the Itaú bank reporting format.

• Social Security

  Global Payroll for Brazil provides variables, formulas, deductions, and other rules to calculate and track all aspects of social security contributions. Both employers and employees must make a monthly contribution to social security through the INSS using their own resources to finance the benefits payable to employees. Calculation is in accordance with Institute's table, which is published monthly by INSS. The system calculates how companies, third parties, and employees should contribute to social security.

• Income Tax

  Global Payroll for Brazil provides rules and elements to calculate and deduct withholding of income tax using the graduated tax rate for monthly payroll, 13th salary, and vacation payments. The system also tracks the following allowable deductions: alimony, qualifying dependents, social security contributions, pension and retirement contributions, and retirement and pension income. There is also a report that shows the details of the employee's dependent data used for calculating income tax.

• Absences

  You can use the system's predefined rules for processing absences. You may modify some of the absence rules and create new ones to reflect you organization's policies. You can also assess the impact of an absence using the Absence Forecasting process.

• Loans

  It is a common practice for Brazilian companies to grant personal loans or pay for assets and services on behalf of their employees. Global Payroll for Brazil enables you to maintain these loans, create payback schedules and modify the deduction of such values previously loaned to employees. You can adjust the loan by any rate and change the value of the deduction. On termination, the outstanding balance must be deducted. The loan may be deducted from normal payroll, vacation, 13th salary or termination.

• Provisions

  Global Payroll for Brazil provides elements to calculate provisions for vacations and 13th salary. After the system calculates the provisions, you can generate a provisions report.

See Also

Processing Banking

Setting Up the 13th Salary

Managing Vacation Data

Defining Average Salary Rules

Creating Payslips

Calculating Social Security Contributions

Withholding Income Tax (IRRF)

Entering Absences

Tracking Loans

Calculating Legal Provisions

Delivered Elements for Brazil

This section discusses:

• Creation of delivered elements.

• Element ownership and maintenance.

Creation of Delivered Elements

PeopleSoft Enterprise Global Payroll defines each business process for Brazil in terms of delivered elements and rules. Some of these elements and rules are specifically designed to meet legal requirements, while others support common or "customary" payroll practices.

All of the elements and rules delivered as part of your country extension were created using the core application—the same application you will use both to create additional elements or rules, and (in many cases) to configure existing elements delivered as part of your Global Payroll system. Because the tools needed to redefine or create new payroll elements are fully documented in the core application PeopleBook, this PeopleBook does not reproduce this information. Instead, it briefly reviews 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 Brazil. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll PeopleBook.

See Also

Viewing 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.

Element Ownership in PeopleSoft Enterprise Global Payroll

There are five categories of element ownership in Global Payroll.

Element Ownership in Global Payroll for Brazil

Of the five ownership categories listed here, only the following two are used to define Brazilian elements: PS Delivered/Maintained and PS Delivered/Not Maintained. Although Global Payroll for Brazil 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.

Note. In general, Global Payroll for Brazil uses the ownership category PS Delivered/Not Maintained except where the modification of an element might interfere with calculations designed to satisfy strict (and generally invariable) legal requirements. The value of this approach is clearly evident in the setup of delivered accumulators. Because balance accumulators (for example, those storing taxable gross on a year-to-date basis) must be set up to comply with rigid legal requirement for reporting taxes and contributions, Global Payroll for Brazil defines them as PS Delivered/Maintained (meaning you cannot modify or directly add new elements to them). However, you can add new elements to these accumulators using the delivered segment accumulators, which serve as the basic entry point into the system and are not maintained by PeopleSoft. Therefore, when you define a new earning or deduction, you can assign the element to a segment accumulator, and the segment accumulator automatically contributes to the correct balance accumulators.

See Also

Defining Element Names

Naming Convention for Delivered Elements

This section discusses:

• Element names.

• Functional area codes.

• Element type codes (PIN_TYPE).

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: FF TT NAME.

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

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

• NAME: The name is based on a term in Portuguese and provides a further means of identifying the element.

For example, in the tax array MD VR SUMA MED, MD represents the functional area, VR represents the element type, and SUMA MED (Soma a Médias) provides a further means of identifying the element.

Note. This naming convention applies to the following element types: arrays, brackets, counts, dates, durations, formulas, variables, historical rules, fictitious calculation rules, proration rules, rounding rules, writable arrays, and generation control conditions.

Primary Elements

Primary elements, such as earnings, deductions, accumulators, absence take, and absence entitlement elements generally do not contain functional area codes or element type codes in their names. This is because primary elements have names, based on Brazilian terms, that identify their function and element type without the use of additional codes. For example, the name of the earning element SALARIO MENS clearly identifies this element as an earning, and more specifically, as a base salary element.

Other Elements

Although there is no fixed naming convention for sections and element groups, Global Payroll for Brazil commonly uses the following naming convention: FF NAME.

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

• NAME: The name is based on a term in Portuguese and provides a further means of identifying the element.

For example, a section in a process list for Brazil might be named KR VENCIMENTOS, where KR is an identifier and VENCIMENTOS provides a means of uniquely identifying the element.

Additional Clues to the Use of Brazilian Elements

Many Brazilian 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 duration element FE DR DIAS AFA PER. While the functional area code FE indicates that this element is used for vacations, and the element type code DR identifies them as duration elements, the abbreviations AFA and PER provide additional clues to how the element is used. In this example, AFA stands for Afastamento (absences) and PER stands for Periodo (period). As you become more familiar with the payroll rules created for Brazil, 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 Brazilian elements:

Component Names (Suffixes)

In Global Payroll for Brazil, suffixes are used to name the components of earning and deduction elements. For example, when you create an earning, deduction, or absence element in PeopleSoft Enterprise Global Payroll, you must 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 that are used. The system also names the components and accumulators by appending a suffix to the element's name.

Note. To view all the suffixes defined for your country, use the Element Suffixes page in the core Global Payroll application.

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

EARN1 = Rate × 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.

As you can see, the system creates suffixes to name the components of the element (_RATE and _UNIT). In Global Payroll all suffixes fall into one of the following types:

• Separator.

• Earnings/deductions component suffixes.

• Earnings/deductions accumulator suffixes.

• Deduction arrears component suffixes.

• Absence entitlement component suffixes.

• Absence entitlement accumulator suffixes.

In Global Payroll for Brazil, the following suffixes are pre-delivered.

Separator

The separator is defined as: _ (underscore)

Component Suffixes

The following table lists the component suffixes delivered for Brazil:

Accumulator Suffixes

The following table lists the accumulator suffixes delivered for Brazil:

Deduction Arrears Component Suffixes

The following table lists the deduction arrears component suffixes delivered for Brazil:

Absence Entitlements Suffixes

The following table lists the absence entitlement suffixes delivered for Brazil:

See Also

Defining Suffixes

Functional Area Codes

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

Element Type Codes (PIN_TYPE)

The following table contains codes for all the element types. Because not all element types are delivered for Brazil, not all of these codes appear in the names of Brazilian elements.

Data Archiving for Global Payroll for Brazil

Global Payroll for Brazil delivers an archiving tool called the Data Archive Manager with a predefined archive object (GPBR_RSLT_ARCHIVE) and an archive template (GPBRRSLT) that you can use to archive your payroll results data. The delivered archive template uses queries to select and store 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.

How to View Delivered Elements

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

See Also

Understanding How to View Delivered Elements