Defining Earnings

This chapter discusses how to:

• Calculate earnings.

• Define salary advances.

• Use batch positive input.

Calculating Earnings

Global Payroll for Brazil enables you to calculate:

• Base compensation

• Bonuses and premiums

• Additional earnings

• Overtime

Calculating Base Compensation

To calculate earnings for employees, the system uses the following earning elements:

Salary

The amount paid depends upon the employee category and is calculated for the payment period.

This table describes the elements that the system uses to calculate salary:

Note. Delivered earning elements that include the abbreviation MEN, such as PERIC MEN (hazardous bonus monthly) are used to calculate other earnings or deductions that are based on the monthly amount even though the employee does not receive the entire monthly payment.

Commission

Payment of commissions are required only upon conclusion of the transaction to which they refer. Termination of employment does not halt the payment of a commission. Commissions are payable monthly, or within three months of the settlement agreement. To calculate commissions, the system uses the COMISSAO earning, which is populated by positive input for each employee.

DSR Commission - Regarding Weekly Rest

For commissions corresponding to Sundays and holidays, the system uses the earning DSR COMISS to pay the estimated commission, and the DSR COMMISSAO accumulator and FP FM DSR formula.

Minimum Guaranteed

The minimum guaranteed salary is either defined by the Labor Collective Agreement and the professional category, or by the minimum wage. The difference between the salary earned and the minimum guaranteed salary must be paid by the organization and not compensated in future payments.

Formula FP FM MIN GAR compares the commission with the minimum guaranteed value specified on the Union Parameters BRA Page. If the commission is less than the minimum the system adjusts earning MIN GARANTID with the value needed to reach the minimum.

Cost Allowances and Travel Expenses

Cost allowances and travelling expenses may be granted and will be taxed when they exceed 50 percent of the salary value. This table describes earnings for Global Payroll for Brazil:

Calculating Bonuses and Premiums

Global Payroll for Brazil enables you to create bonuses, replacement bonuses, and position compensation bonuses.

The bonus earning uses the formula FP FM BONUS to calculate its final amount. This formula applies to a percentage based on variable FP VR % BONUS over the employee remuneration and checks the limit value from variable FP VR LIMITE BONUS.

The replacement bonus dummy earning GRAT SUB MEN is populated by positive input for each employee. This element stores the monthly amount and can be used in some accumulators. The earning GRATIF SUBS is used to pay the replacement bonus. This value can be prorated.

The position compensation bonus dummy earning is populated by positive input for each employee. This element stores the monthly amount and can be used in some accumulators. The earning GRATIF FUNC is used to pay the position compensation bonus. This value can be prorated.

The system uses the earning PREMIO to calculate premiums. Its value is determined by positive input for each employee.

Calculating Additional Earnings

Working under risky conditions can merit extra pay. Percentages may vary according to union and collective agreements. This table lists the allowance types and the formulas and elements used for each:

Calculating Overtime

The system uses the allowances described in this table to calculate overtime:

Defining Salary Advances

Salary advance is usually paid at the 10th or 15th of the month. The advance is based on 40 percent of the monthly salary and the number of days worked during the month. The remainder of the monthly salary (the balance) is then paid on the 5th of the following month.

The monthly salary calculation varies by employee type:

• Monthly employees: 40 percent of minimum wage.

• Hourly employees: 40 percent of a 220-hour month at the hourly minimum wage.

• Commission Employees: 40 percent of average commissions.

The system uses the following information when processing salary advances:

• Employee HR information: Name, registration, hire date.

• Time management information: Absences, vacations.

Salary Advances and Taxation

If the salary advance and the balance payment are made in the same month, the advance is not subject to any type of tax deduction. The value will be paid in full according to the percentage set forth on the indicated salary. Taxes are deducted from the balance payment made at the end of the month.

If the salary advance and the balance payment are not made in the same month, the company is required to withhold income tax on the advance payment.

See Also

Withholding Income Tax (IRRF)

Loading Batch Positive Input

You can use batch positive input to reduce time-consuming data entry in Global Payroll for Brazil. For example, you could enter and trigger bonuses for all of your employees using batch positive input, or you could trigger mass deductions. For example, suppose that an employer has an agreement with a cell phone company to provide half the employee population with a 50 percent discount rate on calls. Instead of entering each of the monthly cell phone invoices (deductions) for each employee, the cell phone company could generate a flat file with a layout that loads this invoice information using a batch process.

This section describes how to load the batch positive input.

Page Used for Loading Batch Positive Input

Loading Batch Positive Input

Access the Manage Pos Input via Batch BRA (Global Payroll & Absence Mgmt, Absence and Payroll Processing, Prepare Payroll, Manage Pos Input via Batch BRA, Manage Pos Input via Batch BRA).

Clear Data	If you clear this check box, previously loaded data is deleted. If you select this check box, the batch process loads new data into the Positive Input tables for payroll purposes.
Pay Group	Enter the pay group for which you want to load batch positive input.
Calendar ID	Select the calendar ID for the pay group that you identified in the Pay Group field.
Action Type	Select the action to be performed. Choose from the following: Add Do Not Prc (do not process) Override Zero
Batch Code	Enter the batch code ID that identifies all of the transactions contained in the flat file. This field enables you to delete information loaded by mistake, because it serves as the identifier of that information.
Input Directory	Specify the location of the flat file containing the batch positive input (flat file directory).
Output Directory	If the batch process finds errors, it generates a log file containing the errors. Use this field to specify where the system should place the error log (error log directory).

Flat File Layout for Batch Positive Input

When you create flat files for the batch positive input process, reproduce the following file definition:

Here is an example:

Note. This flat file definition applies to both earnings and deductions that you load using batch positive input.

See Also

Working with Positive Input