PeopleSoft Enterprise Global Payroll for Brazil 9.1 PeopleBook

Setting Up Vacation Pay

This chapter provides an overview of vacation setup in Global Payroll for Brazil and discusses how to define vacation parameters for Brazil.

Understanding Vacation Setup

This section provides an overview of vacation setup and discusses:

Core application setup.
Global Payroll for Brazil setup.

Vacation pay setup for Brazil is a subset of absence setup in general, because every absence—whether for vacation, sickness, or other cause—depends on the definition of absence take and entitlement elements and other absence data in the Global Payroll core application.

In addition to general absence setup, you must define other vacation parameters, such as events per entitlement period, entitled days, and days per take, that define vacation business rules and enable you to integrate Brazilian vacations with core absences.

Core Application Setup

To prepare Global Payroll for Brazil for absence processing, you must use core application pages to complete the following setup steps:

Define work schedules and assign a schedule to each payee.
Define holiday schedules.
Modify the delivered absence take and absence entitlement elements, and create new absence elements, as needed.

Note. Global Payroll for Brazil delivers sample values for many of these elements. You may want to replace at least some of these values with data that is specific to your organization.

See Managing Vacation Data.
Assign absence elements to payees and process lists.

As with all primary elements, you must assign absence entitlement and take elements to payees and include the elements in the process lists that you use when you run the absence processes. (This step is not necessary for per-absence entitlement elements.)

Global Payroll for Brazil delivers predefined sections and process lists for absence processing. Use them, modify them, or create your own.

Global Payroll for Brazil Setup

In addition to the generic, core application setup steps required for absences, the setup of Brazilian vacation pay involves the following, additional steps using the Vacation Parameters BRA page in Global Payroll for Brazil:

Define all company policies and legal requirements that are related to vacations using parameters.

Parameters include such information as the number of vacation days an employee can take per entitlement period, the maximum and minimum number of days of vacation that can be taken per leave, and the age above and below which vacations cannot be split into multiple periods.
Identify the specific take and entitlement elements for which you are defining parameters.

These are the same elements that you will later use to enter and maintain vacation takes on the Vacation Acquisition Prd-Sched (vacation acquisition period-schedule) page. The only absences that you can enter and maintain on the Vacation Acquisition Prd-Sched page are vacation-type absences; takes for other kinds of absences must be entered on the Absence Entry page for Brazil or on the Absence Event Entry page in the core application.

Note. If you do not specify take and related entitlement elements on the Vacation Parameters BRA page, you cannot enter vacation time by using these elements on the Vacation Acquisition Prd-Sched page.

Note. You must also upload vacation entitlement periods history during implementation. Global Payroll for Brazil does not deliver a process to perform this upload.

This section discusses only the Brazil specific steps required to set up vacation leave; the documentation of generic procedures for defining absence elements can be found in your PeopleSoft Enterprise Global Payroll PeopleBook.

Viewing Delivered Elements

The PeopleSoft system 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.

Defining Vacation Parameters for Brazil

To set up vacation parameters, use the Vacation Parameters (GPBR_VACN_PARM) component and the Vacation Calendars BRA (GPBR_VAC_CALENDAR) component.

This section provides an overview of vacation parameters and discusses how to:

Define vacation parameters.
Close and continue entitlement balances.
Identify which calendars to override for vacation events.

Understanding Vacation Parameters

In Global Payroll for Brazil, you use parameters to define company policies and legal requirements that are related to vacation takes. You use these parameters to define:

The number of vacation days that an employee can take per entitlement period.
The maximum and minimum number of days of vacation that can be taken per leave.
Rules for calculating the value of vacation days that are sold back to the company by the employee.
Rules for closing or extending an entitlement period when an employee exceeds the maximum number of total absences allowed in a period.

Pages Used to Define Vacation Parameters

Page Name	Definition Name	Navigation	Usage
Vacation Parameters BRA	GPBR_VACN_PARM	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Vacation Parameters BRA, Vacation Parameters BRA	Define vacation parameters for Brazil. Also use to close and continue entitlement balances.
Vacation Calendars BRA	GPBR_VAC_CALENDAR	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Calendars, Vacation Calendars BRA, Vacation Calendars BRA	For a given pay group, specify which calendars to override for vacation events.

Defining Vacation Parameters

Access the Vacation Parameters BRA page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Vacation Parameters BRA, Vacation Parameters BRA ).

General

Takes per Acquisitive Period	Enter the number of separate vacations that employees can take within an entitlement period. For example, an employees may be eligible for 30 days of vacation per entitlement period, with those 30 days being divided into two separate vacations.
Vacn Days Per Acquisitive Prd (vacation days per acquisitive period)	Enter the number of vacation days to which employees are entitled per entitlement period.
Credit Treatment	Specify the credit treatment for vacation "sell" days. Values are: Starting Month: Select to base the value of any vacation sell days on the employee's actual daily salary at the start (the first month) of the vacation period. End of Vacations: Select to base the value of any vacation sell days on the employee's salary at the end of the vacation period. Proportional Vacation Days: Select if you want the system to calculate the value of unused vacation days by using a factor that is based on the proportion of vacation days actually taken each month (if the vacation spans several months). See Understanding Vacation Parameters.
Allow Negative Balance	Select to allow negative accrual balances for vacations. This field allows vacation scheduling if an acquisitive period does not have sufficient entitlement. If you select this option, the Limit field appears.
Limit	Enter the maximum negative entitlement balance allowed. Days that exceed this maximum must be taken as unpaid leave. Note. This field appears only when you select the Allow Negative Balance check box.
Minimum Age for Partial Take	Specify the age under which the division of vacations into separate events is not allowed.
Maximum Age for Partial Take	Specify the age over which the division of vacations into separate events is not allowed.
Take - Needs Confirmation	Select if vacation needs to be approved prior to being processed by the system. When you enter a vacation event in the Vacation Acquisition Prd-Sched page, you assign the event a leave status of Programed, Confirmed, and so on. If the leave status is Programmed and you select this check box, then the vacation payroll process does not process the vacation until it is set to Confirmed. If you clear this check box, the vacation payroll process processes vacation events with a leave status of Programmed. Note. You approve vacation takes on the Vacation Acquisition Prd-Sched page. If you do not select this option, the system processes both planned and confirmed vacation takes. See Managing Vacation Data.

Note. Companies that process vacation pay more than once each month can use the Vacation Calendars BRA page.

See Identifying Which Calendars to Override for Vacation Events.

Per Vacation Take

Min Days # (minimum number of days)	Enter the minimum number of leave days that can be taken as part of a single vacation take.
Max Days # (maximum number of days)	Enter the maximum number of leave days that can be taken as part of a single vacation take.
Absences Take Credit Max % (absences take credit maximum percentage)	Enter the maximum percentage of vacation allowance that a payee can sell. The Vacation Acquisition Prd-Sched page displays this value when you select the Pay Credit check box.

Absence Elements

In the Absence Elements group box, you identify the specific absence take and entitlement elements to use when synchronizing the Vacations Entitlement and Takes BRA page with core pages and events. For example, to display the balance for a vacation entitlement period in the Vacations Entitlement and Takes BRA page, the system needs the name of the entitlement element—an element that calculates and stores the vacation balance—to obtain the current balance in the results tables. Similarly, when entering vacation takes, you insert, delete, or update a row in the Absence Entry page by way of a component interface; the system needs the name of the absence take to map vacation events.

Vacations	Specify the absence take element to use for vacation takes. The system uses this element to synchronize vacation takes with core absences.
Paid Vacations	Specify the absence take element to use for vacation credits. The system uses this element to synchronize vacation credits with core absences. Note. You must define how the system calculates vacation credit—the amount returned to the payee when he or she sells unused vacation days—by specifying a credit treatment option in the Credit Treatment field.
Vacation Entitlement	Specify the absence take element for which you want to adjust and display balances.
Vacation Proportional	Select the element that tracks proportional vacations earned in each period (such as vacation acquired in the current acquisitive period during a final payment).

Absence Interference on Acquisitive Period

Using the fields in the Absence Interference on Acquisitive Period group box, you can close or continue vacation entitlement periods in response to other absences or events that impact vacation entitlement. For example, you can instruct the system to close an entitlement period for a work disability that lasts more than 180 days or for military service. You can also continue an entitlement period that would otherwise be closed or reduced by an absence. For example, you can specify that if an employee takes maternity leave that lasts 60 or more days, 60 additional days should be added to the entitlement period.

See Understanding Vacation Parameters.

Sequence	Enter a sequence number. The sequence number represents the order in which the system processes the different actions (Close or Continue) that you defined.
Action	Enter the action that you want the system to take in response to the absence that you specify in the Absence Type field. Values are: Close: Select to close an entitlement period in response to the absence types that are specified in the Absence Type field. Continue: Select to continue an entitlement period in response to the absence types that are specified in the Absence Type field.
Number of Days for Action	Enter the number of days of the absence type or combination of absence types, which are shown in the Absence Type field, that an employee must accumulate before the Close or Continue action can take effect. For example, enter 180 to indicate that 180 or more days of sick leave (absence type of AFA) should result in the closure of the entitlement period for your employees.
Absence Type	Enter the type of absence or combination of absence types that should result in the action that is specified in the Action field.

Selling Vacation Days

In Global Payroll for Brazil, you can credit the employee's account for the sale of unused vacation days. The vacations payroll process calculates the value of these days in one of several different ways based on the value of the Credit Treatment field.

Consider the following salary and vacation data for an employee.

Salary Data:

February Salary = 3000; daily salary is 3000÷30 = 100.
March Salary = 3300; daily salary is 3300÷30 = 110.
April Salary = 3630; daily salary is 3630÷30 = 121.

Note. The system calculates the daily salary by annualizing and reconfiguring using frequency annual factors.

Vacation Data:

The employee is entitled to 30 days of vacation per entitlement period.
The employee sells 10 days of vacation in the entitlement period.
The employee takes vacation from March 5 to March 24, 2002 (20 days).
The employee receives vacation payment two days before he takes leave (on March 3).
The employee's job record does not contain the March salary information at the time that the employee receives the vacation payment.

Case 1: Credit Treatment is Starting Month.

In this case, the amount paid in advance of the vacation is based on the last salary value in the system, which is the February salary (3000). The employee receives pay for 20 days of vacation (2000) plus the value of 10 more days (1000) due to the sale of the unused entitlement.

The total initial payment is calculated as follows:

(Daily Salary) × (Number of Days), or (100 × 20) + (100 × 10), for a total of 3000.

However, because the credit treatment is Starting Month, the value of vacation sell days must be recalculated by using the March salary (3300), or rather, the salary in the first month of vacation. The difference between the initial calculated value of the vacation credit and the recalculation is paid to the employee. In this case, the difference is (110 × 10) – (100 × 10), or 100.

Note. If the employee's job record contains the March salary information at the time of the vacation payment, the system would use the March daily salary of 110 to calculate the initial vacation payment. No retroactive processing is required in this case.

Case 2: Credit Treatment is End of Vacations.

As in the previous case, the amount paid in advance of the vacation is based on the last salary value in the system, which is the February salary (3000). The employee receives pay for 20 days of vacation (2000) plus the value of 10 more days (1000) due to the sale of the unused entitlement.

The total initial payment is calculated as:

(Daily Salary) × (Number of Days), or 100 × 20 (2000 for the vacation) + 100 × 10 (1000 for the vacation credit), for a total of 3000.

However, because the credit treatment is End of Vacations, the value of the vacation sell days must be recalculated by using the salary in effect at the end of the vacation, on March 25. (The vacation ends on March 24.) But in this example, the vacation credit period crosses two months with two different salaries—it runs from March 25 to April 3, for a total of 10 days, 7 of which are in March, and 3 of which are in April. Thus seven of the days are recalculated by using the March salary (3300), and three are recalculated by using the April salary (3630). The payee receives the difference between the initial calculated value and the recalculated value of the vacation sell days.

Case 3: Credit Treatment is Proportional Vacation Days.

To illustrate this case, the vacation period in this example extends from March 26 to April 4, for a total of 10 days. Just as in the previous case, the payee has 10 days of vacation to sell and receives an initial vacation payment for 20 days ((10 vacation days) + (10 sell days)) based on the last salary in the system (February). However, because the credit treatment is Proportional Vacation Days, the system recalculates the value of the 10 vacation sell days based on the proportion of vacation days taken in each month. In the current example, six days of the vacation fall within March, and four days within April. Thus, the system recalculates the value of six credit days by using the March salary (3300) and four credit days by using the April salary (3630). The payee receives the difference between the initial calculated value and the recalculated value of the vacation sell days.

Closing and Continuing Entitlement Balances

On the Vacation Parameters BRA page, you can close or continue vacation entitlement periods in response to other absences or events that impact vacation entitlement. For example, you can instruct the system to close an entitlement period for a work disability that lasts more than 180 days, or for military service. You can also continue an entitlement period. For example, you can specify that if an employee takes maternity leave that lasts 60 or more days, 60 additional days should be added to the entitlement period.

Closing an Entitlement Period

To close an entitlement period:

Enter a sequence number on the Vacation Parameters BRA page for each absence type or combination of types that can cause the closure of an entitlement period.

Note. Many different absence types or combinations of absence types may cause the closure or continuation of an entitlement period. The sequence number tells the system in what order to process the effect of these different absences on vacation entitlement.
Enter Close in the Action field.
In the Absence Type field, enter the absence type or combination of absence types that will trigger the Close action.
In the Vacn Days per Acquisitive Prd (vacation days per acquisitive period) field, enter the number of days of the absence type or combination of absence types shown in the Absence Type field that an employee must accumulate before the Close action can take effect.

For example, you could specify that 180 or more days of sick leave (absence type of AFA) should result in the closure of the entitlement period for your employees.

Note. When you close an entitlement period in Global Payroll, you lose all vacation days that accumulated for the period.

Continuing an Entitlement Period

To continue an entitlement period that would otherwise be closed or curtailed:

Enter a Sequence Number on the Vacation Parameters BRA page for each absence type or combination of types that can cause the continuation of an entitlement period.

Note. Many different absence types or combinations of absence types may cause the closure or continuation of an entitlement period. The sequence number tells the system in what order to process the effect of these different absences on vacation entitlement.
Enter Continue in the Action field.
In the Absence Type field, enter the absence type or combination of absence types that will trigger the Continue action.
In the Vacn Days per Acquisitive Prd (vacation days per acquisitive period) field, enter the number of days of the absence type or combination of absence types shown in the Absence Type field an employee must accumulate before the Continue action can take effect.

For example, you could specify that 60 or more days of maternity leave (absence type of LCM) should result in the continuation of the entitlement period for the number of days that the payee was absent due to maternity leave during the entitlement period.

Note. When you extend an entitlement period in Global Payroll for Brazil, you maintain all vacation days that were previously accumulated and accumulate additional entitlement during the continuation period.

Identifying Which Calendars to Override for Vacation Events

Access the Vacation Calendars BRA page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Calendars, Vacation Calendars BRA, Vacation Calendars BRA).

You can use this page to identify, for a given pay group, the vacation absence calendars and vacation payroll calendars to override when you enter vacation events on the Vacation Acquisition Prd-Sched page.

For example, assume that an employee will be on vacation from January 31 to March 1 and that to comply with the law, you must issue advance payment of the employee's January and February vacation on January 29. When you enter the vacation event on the Vacation Acquisition Prd-Sched page, the system refers to the Vacation Calendars BRA page to determine the calendars for which to create override instructions. It looks for the row that contains January 29 to determine which calendars to override for the vacation days in January and does the same thing for February and March. In this way, the system identifies which calendars to process in advance and creates the corresponding overrides for those calendars.