PeopleSoft Enterprise Global Payroll for Brazil 9.1 PeopleBook

Managing Social Integration Program Payments

This chapter provides an overview of Programa de Integração Social (PIS) (Social Integration Program) payment processing and discusses how to:

Define parameters for processing PIS payments.
Process PIS payments.

Understanding PIS Payment Processing

Employees who participate in the Programa de Integração Social are entitled to receive an annual income or allowance payment if they meet certain conditions. You can use Global Payroll for Brazil to specify which employees are qualified to receive PIS payments and to process payments for these employees when CAIXA, the institution that administers PIS, notifies you of the PIS amounts that are owed.

Defining Parameters for Processing PIS Payments

To define parameters for PIS payment processing, use the PIS Parameters BRA (GPBR_PARM_PIS) component.

This section provides an overview of the setup steps for PIS processing and describes how to:

Define PIS parameters for a company.
Override PIS parameters for an establishment.
Identify the establishment that will transmit files to CAIXA.
Identify the establishment for centralizing PIS data.
Assign PIS payment instructions to an individual employee.
Assign PIS payment instructions to multiple employees.

Understanding Setup Steps for PIS Payments

Before you can process PIS payments, you must define various parameters. To define the setup parameters for a company:

Specify the CAIXA bank to use for PIS payments, the earning elements for paying PIS income and allowance amounts, and any optional data to include for each employee in the transfer file that you send to CAIXA.
If an establishment's agreement with CAIXA differs from the company's agreement with CAIXA, enter the establishment's information.
Identify which establishment within the company will transmit files to CAIXA.
Select the establishment that will manage PIS processing and identify the other establishments for which PIS payments will be processed at the same time.
Identify employees who are entitled to receive PIS payments.

You can identify employees individually or you can run a process that selects all employees of an establishment or group, or just those employees that you select.

Pages Used to Define Parameters for PIS Payments

Page Name	Definition Name	Navigation	Usage
PIS Parameters BRA	GPBR_PARM_PIS	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, PIS Parameters BRA, PIS Parameters BRA	Define a company's PIS parameters.
Override PIS Param (override PIS parameters)	GPBR_PARM_PIS_E	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, PIS Parameters BRA, Override PIS Param	Override a company's PIS parameters for a specific establishment.
Additional Info - BRA	ESTAB_TBL_BRA	Set Up HRMS, Product Related, Workforce Administration, Establishment BRA, Additional Info - Brazil	Identify which of a company's establishments will send files to CAIXA and identify the CAIXA agency.
Centralization Data	CENTRALIZATION_BRA	Set Up HRMS, Product Related, Workforce Administration, Centralization Data BRA, Centralization Data Select PIS Process in the Process Type field.	Identify the (centralizer) establishment that manages PIS processing for the company and identify other establishments that will be represented in the CAIXA file.
PIS Parameters	GPBR_PYPIS_PARM	Global Payroll & Absence Mgmt, Payee Data, Define Payee Parameters BRA, PIS Parameters	Identify whether a selected payee is entitled to receive PIS payments.
PIS Assignment BRA	GPBR_RC_PIS	Global Payroll & Absence Mgmt, Social Security/Insurance, PIS Assignment BRA, PIS Assignment BRA	Run the Employee Mark / Unmark for PIS Application Engine process (GPBR_PIS_AE) to identify which payees are entitled to receive PIS payments.

Defining PIS Parameters for a Company

Access the PIS Parameters BRA page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, PIS Parameters BRA, PIS Parameters BRA).

Bank ID

Select the Bank ID for CAIXA.

Company Field

Use these fields to specify additional data that you want to include in the Release of Resources file that is returned to CAIXA. You can select any field from the PS_JOB record, such as EMPLID (employee ID) or DEPTID (department ID). When you update the Release of Resources file, the system will include, for each listed employee, the first ten positions from the combined fields. This data can help you research and verify information in the file.

Earnings for Payment

Use these fields to select the earning element that is used to process each type of PIS payment.

Payment Type

Select the payment type, Income (Rendimento) or Allowance (Abono Salarial). Enter only one row for each payment type.

Overriding PIS Parameters for an Establishment

Access the Override PIS Param page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security/Insurance, PIS Parameters BRA, Override PIS Param).

Select the establishment to which the override instructions apply. When processing PIS for this establishment, the system will use the instructions entered here rather than the instructions entered for the company on the PIS Parameters BRA page.

Identifying the Establishment that Will Transmit Files to CAIXA

Access the Additional Info - Brazil page (Set Up HRMS, Product Related, Workforce Administration, Establishment BRA, Additional Info - Brazil).

In the PIS Data section of the page, select the Estab Responsible by Agreement check box and identify the first four digits of the CAIXA agency the establishment has contact with.

In the Establishment ID section at the bottom of the same page, select the establishment ID type of MCPIS and enter the ID number. The first four digits of this number must match the code for the CAIXA agency.

Identifying the Establishment for Centralizing PIS Data

Access the Centralization Data page (Set Up HRMS, Product Related, Workforce Administration, Centralization Data BRA, Centralization Data).

Select the establishment that will send files to CAIXA in the Centralizer field. In the Centralized Data group box, list the establishments that will be represented in the file.

Assigning PIS Payment Instructions to an Individual Employee

Access the PIS Parameters page.

Reference Year

Enter the year to which the PIS payments apply. The reference year must match the effective date.

PIS/PASEP Payment

Select if the employee is qualified to receive PIS or PASEP (Public Service Employees Savings Program) payments for the reference year.

Assigning PIS Payment Instructions to Multiple Employees

Access the PIS Assignment BRA page (Global Payroll & Absence Mgmt, Payee Data, Define Payee Parameters BRA, PIS Parameters).

You can use this page to specify that multiple employees are eligible to receive PIS payments for a given year.

Reference Year	Enter the year to which the PIS payments apply. The reference year must match the effective date.
PIS Activated	Select this check box to indicate that the selected employees are eligible for PIS payments for the reference year.

Processing PIS Payments

This section provides an overview of PIS payment processing, lists prerequisites, and discusses how to run PIS processes.

Understanding PIS Payment Processing

PIS processing encompasses four separate processes:

Identifying employees for payment.
Generating PIS payment data.
Canceling PIS payments.
Reversing PIS payments.

To run any of these processes, you must enter the establishment ID for the designated (centralized) establishment and the reference year from which PIS is to paid.

Identifying Employees for Payment

Upon receipt of the Release of Resources file from CAIXA, which lists employees who are scheduled to receive PIS payments, you run a validation process that identifies discrepancies between the data in the file and your system records.

The validation process checks to see if each employee listed in the file is covered by a PIS agreement, and checks the employee's birth date, name, and address. The validation process generates an output file that includes values for the additional company fields that you selected on the PIS Parameters BRA page. It also generates a log that identifies discrepancies between data in the CAIXA file and the system.

Following are common reasons for discrepancies:

Incompatible MCPIS with responsible Establishment – The MCPIS ID or the CNPJ ID for the responsible establishment that is listed in the file does not match the ID that is stored in the system.
PIS Issue PIS=0011 – The company's name, municipal name, federal unit, neighbor, CEP, phone, or fax number listed in the file does not match the data in the system.
Employee not found using PIS code as search key – The employee is not found in the system, using the PIS ID listed in the file.

(An employee's PIS ID is entered on the Biographical Details page in PeopleSoft Enterprise Human Resources.)
More than one employee with the same PIS code – The same PIS ID is assigned to more than one employee in the system.
PIS Issue PID=0023 – The employee's name or birth date, as listed in the file, does not match the data in the system. (The NAME_FORMAL field is used for the validation.)
Employee with no PIS agreement – The employee is selected for payment in the system (the PIS/PASEP check box on the Payee Parameters page is selected) but not in the file, or vice versa.

Reconcile any discrepancies that are reported in the log, run the identification process again, and send the output file to CAIXA.

Generating PIS Payment Data

Based on the information that you return to CAIXA, that institution sends a new file that lists only those employees who are to receive PIS payments, along with the payment amounts, and the type of payment (income or allowance). When you receive this file, run the PIS - Payment process.

If the information in the file matches the information in the system, the process assigns the earning element that is identified on the PIS Parameters BRA page to each employee who is to be paid. You can view the payment instructions for an employee on the Element Assignment by Payee page. The payment month that you enter on the run control page determines the begin and end dates on the Element Assignment Payee page. (Alternatively, you can use the Payee Assignment by Element page to view all assignment instructions that were created for the PIS earning element.)

The process generates a log that identifies employees for whom assignment instructions could not be generated as a result of discrepancies between data in the CAIXA file and the system. Many of the discrepancies are similar to those encountered during the employee identification process. Additional reasons for discrepancies follow:

Override exists for employee - indicates that assignment instructions for the earning element that is selected on the PIS Parameters BRA page already exist for the listed employee.
The payment was not made for this employee - indicates the payment could not be made for a specific employee.
The payment was not made - this message appears in the summary section and indicates that one or more employees are in error.

Canceling PIS Payments

The cancellation process has the effect of revoking PIS payment instructions (the earning assignment) for employees who are not entitled to receive payment. This situation can happen, for example, when an employee is terminated after the list of payees is validated but before the payment date. You use the same file that is used by the payment process to cancel the payment instructions before running the payroll process.

The cancellation process produces an output file that you send to CAIXA to inform them of scheduled payments that were not made.

Reversing PIS Payments

This process reverses the earning assignment that the PIS payment process generated for the employee. It does this by inserting a second assignment for the reverse amount. Assignment instructions for the offsetting entry must match the original instructions. You may need to run this process, for example, if you specified the wrong month on the run control page when initiating the PIS payment process.

The process generates a log that identifies discrepancies. Many of the discrepancies are similar to those encountered during the PIS payment process.

Following are some additional reasons for discrepancies:

Reversal amount in file is different than in the system - indicates that there is a difference between the reversal amount according to the file and the amount that was paid to the employee.
Reversal was not made for this employee - indicates the reversal could not be generated for a specific employee.
The reversal process was not made - this message appears in the summary section and indicates that one or more employees are in error.

Prerequisites

Before you can run the PIS processes described in this section, follow the setup steps for PIS processing.

Page Used to Run PIS Processes

Page Name	Definition Name	Navigation	Usage
PIS Processing BRA	GPBR_RC_PIS_PRO	Global Payroll & Absence Mgmt, Social Security / Insurance, PIS Processing BRA, PIS Processing BRA	Run the PIS Processing Application Engine (GPBR_PISP_AE) process.

Running PIS Processes

Access the PIS Processing BRA page (Global Payroll & Absence Mgmt, Social Security / Insurance, PIS Processing BRA, PIS Processing BRA).

Operation Type

Select the process to run:

File - Cancelation of Empls (cancellation of employees). This process cancels PIS payments that were made to employees who were not entitled to receive payment. It creates an output file that you can return to CAIXA.

File - Employees for Payment. This process validates data in the Release of Resources file received from CAIXA and creates a log and an output file that you can return to CAIXA.

PIS - Payment Process. This process assigns the earning element that is used for PIS payments to employees.

PIS - Reversal Process. This process reverses PIS payments that were made to employees for a given payment month and reference year.

Establishment ID

Select the establishment. You can only select from those establishments that have been identified as centralized on the Centralization Data page.

Reference Year

Enter the year from which PIS payment can be made.

Payment Month

This field appears when you select the payment or reversal process in the Operation Type field. Enter the month to which the element assignment instructions apply.

Reversal Report

This field appears when you select the reversal process in the Operation Type field.

File Name

Enter the complete path to the file.

Reference Year	Enter the year to which the PIS payments apply. The reference year must match the effective date.
PIS/PASEP Payment	Select if the employee is qualified to receive PIS or PASEP (Public Service Employees Savings Program) payments for the reference year.

Operation Type	Select the process to run: File - Cancelation of Empls (cancellation of employees). This process cancels PIS payments that were made to employees who were not entitled to receive payment. It creates an output file that you can return to CAIXA. File - Employees for Payment. This process validates data in the Release of Resources file received from CAIXA and creates a log and an output file that you can return to CAIXA. PIS - Payment Process. This process assigns the earning element that is used for PIS payments to employees. PIS - Reversal Process. This process reverses PIS payments that were made to employees for a given payment month and reference year.
Establishment ID	Select the establishment. You can only select from those establishments that have been identified as centralized on the Centralization Data page.
Reference Year	Enter the year from which PIS payment can be made.
Payment Month	This field appears when you select the payment or reversal process in the Operation Type field. Enter the month to which the element assignment instructions apply.
Reversal Report	This field appears when you select the reversal process in the Operation Type field.
File Name	Enter the complete path to the file.