Understanding PeopleSoft Enterprise Global Payroll for Spain

This chapter discusses:

• PeopleSoft Enterprise Global Payroll for Spain.

• PeopleSoft Enterprise Global Payroll for Spain business processes.

• Delivered elements for Spain.

• Element naming conventions in Spain.

• Archiving data for PeopleSoft Enterprise Global Payroll for Spain.

• Viewing delivered elements for Spain.

PeopleSoft Enterprise Global Payroll for Spain

PeopleSoft Enterprise Global Payroll for Spain 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 Spanish payroll.

PeopleSoft Enterprise Global Payroll for Spain Business Processes

PeopleSoft Enterprise Global Payroll for Spain supports these business processes:

• Basic and nonbasic earnings.

  PeopleSoft Enterprise Global Payroll for Spain enables you to process basic and nonbasic earnings, such as base salary, seniority, complements (transportation, languages, nocturnal expenses, and festivities), and nonsalary earnings (pernocta and dietas). You can also create your own earning types and modify calculation rules for delivered earnings.

  See Understanding Basic Earnings.

  See Understanding Nonbasic Earnings.

• Extra periods.

  In PeopleSoft Enterprise Global Payroll for Spain, you can define the details for the extra period payments as part of defining labor agreement information. You can define when extra periods are paid, the earnings that contribute towards the extra period payment, and the percentage of each contributing earning that is included in the payment.

  See Calculating Extra Periods.

• Other deductions.

  Other deductions, such as union fees and garnishments, are managed by PeopleSoft Enterprise Global Payroll for Spain as part of the payroll process.

  See Paying Union Fees.

• Overtime.

  PeopleSoft Enterprise Global Payroll for Spain enables you to pay overtime hours. Each organization can specify the annual, monthly, or weekly worked hours based on the maximum legal number of hours established by the Spanish government. Overtime (horas extra) occurs when an eligible payee works more than the specified number of hours. In this case, the employer should pay a surcharge on the extra time worked.

  See Paying Overtime.

• Loans and advances.

  PeopleSoft Enterprise Global Payroll for Spain enables you to process loans and advance payments that are made to employees through the payroll.

  See Working with Loans and Advances.

• Social Security contributions and benefits.

  PeopleSoft Enterprise Global Payroll for Spain calculates the employer and employee contributions and the employer reductions and generates data for the social security reports TC1 and TC2. It includes functionality to handle Social Security funding base calculations for employees with multiple jobs or who were employed as trainees and apprentices.

  PeopleSoft Enterprise Global Payroll for Spain also enables you to track the disability status of employees and transmit the data to Social Security using an electronic medical report file with an .FDI extension.

  See Setting Up Social Security Contributions.

  See Managing Social Security Calculation.

• El Impuesto sobre la Renta de las Personas Físicas IRPF calculation.

  In Spain, the IRPF calculation varies according to the fiscal territory to which the employee reports. PeopleSoft Enterprise Global Payroll for Spain delivers taxation rates for all the Spanish fiscal territories and the tax calculation process handles calculations for all these fiscal territories. PeopleSoft Enterprise Global Payroll for Spain also provides you with a mechanism to produce the Model 111, Model 190, and Model 110 reports for all territories.

  See Calculating Taxes.

• Absences.

  PeopleSoft Enterprise Global Payroll for Spain delivers predefined rules for processing absences due to vacation, illness, maternity, work accidents, and other reasons. You can easily modify many of these rules to reflect absence policies that are specific to your organization or to labor agreements that may be in effect for your employees.

  See Working with Absence Rules.

• Termination pay.

  With PeopleSoft Enterprise Global Payroll for Spain, termination pay is calculated with the payroll and includes the regular salary, extra periods, unused vacation days, and unpaid overtime. The final payment also takes into account any outstanding loans and advances, severance payment, pre-advice days that are not fulfilled, and job litigation salaries.

  See Terminating Employees.

• Payslips.

  PeopleSoft Enterprise Global Payroll for Spain enables you to generate payslips that you can adapt to display exactly the information that you require. You also decide how you want to display retro calculations and extra period payments.

  See Setting Up Payslips.

• Banking.

  With PeopleSoft Enterprise Global Payroll for Spain, you can define the banks that your organization uses to make payroll payments, as well as the personal banking information required to make these payments effective. This also includes IBAN information, if needed. You can distribute net pay between different banks and bank branches and different beneficiaries. PeopleSoft Enterprise Global Payroll for Spain supports the CSB34 format for completing bank transfers, and includes reports that enable you to check stored bank information, as well as completed or pending transfers.

  See Setting Up and Processing Banking.

• Pension plans.

  PeopleSoft Enterprise Global Payroll for Spain provides functionality that supports both individual and collective pension plans. You can create pension plans, assign them to employees, and generate reports that include payroll results data for pension plans, such as the Model 345.

• Special collectives.

  PeopleSoft Enterprise Global Payroll for Spain provides functionality to manage the relationship between companies and the following special collective groups: displaced persons and expatriates, scholarship holders, preretired, and professionals. This includes functionality to manage payments, social security contributions, taxation, and reporting for each of the special collective types.

Delivered Elements for Spain

Global Payroll defines each business process for Spain 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.

This section discusses:

• Delivered element creation.

• Element ownership and maintenance.

Delivered Element Creation

All of the elements that are delivered as part of the country extension were created by means of the core application, the same application that you use to create additional elements and (in many cases) to configure existing elements that are delivered as part of Global Payroll. Because the tools that you need to redefine or create new payroll elements are fully documented in the core application PeopleBook, this information does not appear here. Instead, this guide briefly reviews the relationship between the core application (which contains the tools that you need to define your own elements) and the country extensions (which contain country-specific rules and elements that PeopleSoft Enterprise Global Payroll for Spain defines).

The core application:

• Consists of a payroll rules engine.

  The payroll rules engine is a flexible tool that enables you to define the rules of a payroll system and to run 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. Global Payroll enables you to enter and maintain payroll rules through a set of pages and offers comprehensive features that enable you to work in your preferred language or currency.

• Provides a payroll processing framework.

  The payroll processing framework provides a flexible way to define and run payroll and absence processing flows (such as calendars, run types, pay periods, and process lists).

Country extensions:

• Are built using the core application.

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

Element Ownership and Maintenance

This section describes the PeopleSoft approach to element ownership and what this means for the maintenance of Spanish payroll rules. This information helps clarify which parts of the system you might be required to maintain, what you can modify, and what parts of the system you cannot change.

Element Ownership in Global Payroll

Five types of element ownership are available in Global Payroll:

Element Ownership in PeopleSoft Enterprise Global Payroll for Spain

Of the five ownership types described previously, only these two are used to define Spanish elements:

• PS Delivered/Maintained.

• PS Delivered/Not Maintained.

Although PeopleSoft Enterprise Global Payroll for Spain 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 delivered elements to meet your own unique requirements.

Note. In general, PeopleSoft Enterprise Global Payroll for Spain uses the ownership category PS Delivered/Not Maintained except where the modification of an element might interfere with calculations designed to satisfy strict legal requirements. The value of this approach is 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 legal requirements for reporting taxes and contributions, PeopleSoft Enterprise Global Payroll for Spain defines them as PS Delivered/Maintained (meaning that you cannot modify or directly add new elements to them). However, you can add new elements to these accumulators using delivered specific segment accumulators, which serve as the basic entry point into the system and are not maintained by Oracle.

PeopleSoft Enterprise Global Payroll for Spain delivers these customer-oriented segment accumulators using the CLI AC NAME naming convention. Therefore, when you define a new earning or deduction, you can assign the element to a segment accumulator (CLI), and the segment accumulator automatically contributes to the correct balance accumulators.

See Setting Up Country Data.

This table contains an element-by-element description of the PeopleSoft Enterprise Global Payroll for Spain approach to element ownership and maintenance:

Element Naming Conventions in Spain

Understanding the naming convention that is developed for Oracle-delivered elements can help you determine the element type, the functional area it serves, and how it is used.

This section discusses:

• Naming conventions.

• Functional area codes.

• Element type codes (PIN_TYPE).

Naming Conventions

This section discusses:

• Primary elements.

• Supporting elements.

• Additional clues to the use of Spanish elements.

• Component names (suffixes).

Primary Elements

Primary elements (such as earnings, deductions, absence take, and absence entitlement elements) do not contain functional area codes or element type codes in their names. Primary elements have names that identify their functions and element types without the use of additional codes. For example, the name of the earning element SALARIO BASE identifies this element as a base salary element.

Supporting Elements

For supporting elements (such as variables, formulas, dates, and durations), Oracle uses this naming convention: FFF TT NAME.

• FFF: Functional area code.

  See Functional Area Codes.

• TT: Type of supporting element.

  See Element Type Codes (PIN_TYPE).

• NAME: Based on a term in Spanish and provides a further means of identifying the element.

For example, in the tax array TAX AR ING A EST:

• TAX represents the functional area (taxes).

• AR represents the element type (array).

• ING A EST (ingresos anuales estimados) represents a further means of identifying the element.

Note. This naming convention applies to these element types: accumulators, arrays, brackets, counts, dates, durations, formulas, rate codes, variables, historical rules, fictitious calculation rules, proration rules, rounding rules, writable arrays, and generation control conditions as well as sections and element groups.

Additional Clues to the Use of Spanish Elements

Many Spanish elements contain abbreviations that provide clues to their use in the system (beyond those provided by the functional area codes or element type codes). For example, these duration elements have been defined for Spain: GEN DR PERIODO D, GEN DR PERIODO M, and GEN DR PERIODO A. While the functional area code GEN indicates that these elements are used across various functional areas (they have general relevance), and the element type code DR identifies them as duration elements, the abbreviations D, M, and A provide additional clues to how each element measures time. The duration element GEN DR PERIODO D measures time in days (dias) , hence the D in the element's name. Likewise, the code M reveals that the element GEN DR PERIODO M measures time in months (meses). As you become more familiar with the payroll rules created for Spain, these abbreviations will help you to further identify and understand the role played by each element.

This table lists the most common abbreviations used in the names of Spanish elements.

Component Names (Suffixes)

In PeopleSoft Enterprise Global Payroll for Spain, suffixes are used to name the components of earnings and deduction elements. For example, when you create an earning, deduction, or absence element in 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.

For example, suppose that you define the earning element named EARN1 with this calculation rule:

EARN1 = Rate × Unit

The system automatically creates two additional elements for the components in the calculation rule:

• Rate element: EARN1_RATE.

• Unit element: EARN1_UNIT.

The system creates suffixes to name the components of the element (_RATE and _UNIT).

In PeopleSoft Enterprise Global Payroll for Spain, all components and accumulators have:

• Country: ESP

• Separator: _

In Global Payroll, all suffixes fall into one of these types:

• Separator.

• Earnings or deductions component suffixes.

• Earnings or deductions accumulator suffixes.

• Deduction arrears component suffixes.

• Deduction arrears accumulator suffixes.

• Absence entitlement component suffixes.

• Absence entitlement accumulator suffixes.

To view all of the suffixes defined for Spain, use the Element Suffixes component (GP_SUFFIX) in Global Payroll .

See Defining General Element Information.

Functional Area Codes

For some elements, you need to use a functional area in the naming convention. The three-digit functional area codes are used in naming conventions to identify the functional area where the element is being used.

This table contains the functional area codes used in the names of Spanish elements:

Element Type Codes (PIN_TYPE)

This table contains codes for all of the element types. Because not all element types are delivered for Spain, not all of these codes appear in the names of Spanish elements:

Archiving Data for PeopleSoft Enterprise Global Payroll for Spain

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

Note. 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.

Viewing Delivered Elements for Spain

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Spain. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 9.1 PeopleBook.

See Also

Understanding How to View Delivered Elements