PeopleSoft Enterprise Global Payroll for United States 9.1 PeopleBook

Assigning Repayment Deductions

This chapter provides an overview of the repayment deductions and discusses how to assign repayment deductions and amounts.

Understanding Repayment Deductions

This section discusses:

Delivered repayment deductions.
Deduction processing rules.
Repayment deductions and multiple resolutions.
Viewing delivered elements.

Delivered Repayment Deductions

PeopleSoft Global Payroll for United States delivers the following repayment deductions:

LOAN (company loan)

Use the LOAN deduction to calculate regularly scheduled loan payments. You must define the loan amount, the repayment schedule, and other information related to the loan at the payee level.
LOAN AD PYMT (additional loan payment)

Use the LOAN ADD PYMT deduction to process additional payments that a loan recipient may choose to make outside of the standard repayment schedule. You must define the amount, the payment date, and other information related to the additional loan payment at the payee level.

Note. The delivered repayment deductions for the United States are defined as PS Delivered/Not Maintained. This means that you can modify them to fit your needs.

Deduction Processing Rules

PeopleSoft Global Payroll for United States processes repayment deductions following these rules:

Repayments are deducted after taxes.
At termination, the system automatically deducts any remaining repayment balance.
PeopleSoft Global Payroll allows partial deductions for repayments.
The system processes repayment deductions during regular payroll runs only.
The LOAN deduction can go into arrears; arrears are tracked separately for each repayment.

Repayment Deductions and Multiple Resolutions

You can use the Global Payroll multiple resolution functionality to process multiple repayment assignments for the same payee in a single period. To trigger more than one resolution of the element, attach a different repayment ID to each assignment of the repayment.

Note. We discuss multiple resolution functionality in detail in the PeopleSoft Enterprise Global Payroll 9.1 PeopleBook.

Viewing Delivered Elements

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

Assigning Repayment Deductions and Amounts

This section provides overviews of repayment assignments and Assigning deductions and amounts and discusses how to:

Assign a repayment.
Enter one-time overrides.

Understanding Repayment Assignments

The repayment deductions have a calculation rule of amount with the Amount Type field set to Payee Level. This means that the system does not process repayments unless deduction amounts are assigned to specific payees on the Request Repayments USA page.

This page is used to:

Assign repayments and amounts.
Define payback schedules.
Process additional, non-payroll repayments.
Track and view the status of previously assigned repayments.
Adjust for interest payments.
Forgive existing repayments.
Cancel existing repayments.

Assigning Deductions and Amounts

To assign a repayment and define repayment amounts:

Access the Request Repayments USA page and assign the repayment to a payee.
Enter the total amount of the repayment.

This is the amount that must be paid back in increments as specified in the repayment schedule (see step 3).
Define the repayment schedule.

The repayment schedule tells the payroll system how much to deduct in each pay period. For example, 100 USD per period, 300 USD per period, and so on.

On the Request Repayments USA page, you also specify:

The deduction used to process the repayment.

You can use the delivered LOAN deduction, or select one that you have created.
Additional payments (if any).

You can use the delivered LOAN AD PYMT deduction to process additional payments, or select one that you have created.

Note. Additional payments are non-payroll payments made outside of the normal repayment schedule. They do not reduce the amount of gross pay; instead, they directly reduce the amount of the repayment balance (LNS VR BALANCE).

Page Used to Assign Repayment and Deductions and Amounts

Page Name	Definition Name	Navigation	Usage
Request Repayments USA	GPUS_LOAN_PYE	Global Payroll & Absence Mgmt, Payee Data, Loans, Request Repayments USA, Request Repayments USA	Define repayment deductions. Note. When repayment information is saved on this page, a component interface automatically populates the Element Assignment by Payee and Payee Assignment by Element components with the repayment data and supporting element values (repayment ID). All changes and updates to repayment assignments must be made here and not on the Element Assignment by Payee component or the Payee Assignment by Element component.

Page Name

Definition Name

Navigation

Usage

Request Repayments USA

GPUS_LOAN_PYE

Global Payroll & Absence Mgmt, Payee Data, Loans, Request Repayments USA, Request Repayments USA

Define repayment deductions.

Note. When repayment information is saved on this page, a component interface automatically populates the Element Assignment by Payee and Payee Assignment by Element components with the repayment data and supporting element values (repayment ID). All changes and updates to repayment assignments must be made here and not on the Element Assignment by Payee component or the Payee Assignment by Element component.

Assigning a Repayment

Access the Request Repayments USA page (Global Payroll & Absence Mgmt, Payee Data, Loans, Request Repayments USA, Request Repayments USA).

Employee ID and Name

Displays the ID and name of the payee to whom you are assigning the repayment.

Repayment Assignment

Use the fields in the Repayment Assignment group box to define unique instances of a repayment deduction and to define the total repayment amount.

Element Name	Enter the name of the repayment deduction that you want to assign to the payee. You can use the delivered repayment deduction (LOAN), or a deduction that you have created. Note. The prompt table displays only deductions with an element category of LNS. See Defining Industries and Categories.
Repayment ID	Enter a repayment ID. The ID must be unique for each repayment. Note. A single payee can have multiple repayments; the system uses the repayment ID to track repayments separately.
Issue Date	Enter the date on which the repayment was issued. This field is for information only. It does not affect processing.
Total Amount	Enter the total amount of the repayment. This is the amount to be repaid in increments based on the pay period frequency. Note. The LOAN deduction is defined with a frequency of Use Calendar Period Frequency. This means that the amount you enter in the Schedule Amount field (defined below) is deducted each pay period, regardless of the pay period frequency (weekly, biweekly, monthly, and so on).
Reason	Enter the reason for the repayment.
Status	Specify the current status of the repayment. Values are: In Progress Used for repayments that are in the process of being repaid. Cancelled A repayment is canceled when it has been repaid, forgiven, or canceled. Note. This is for information only. To stop or cancel a loan, you must enter a loan end date.
Currency Code	Specify the currency of the loan deduction.

Repayment Schedule

Use the fields in the Repayment Schedule group box to define the amount to be repaid each pay period.

Effective Date

Enter an effective date.

This date determines when the repayment schedule becomes effective.

Note. You can define different effective-dated schedules for the same repayment by entering additional rows of data.

Schedule Amount

Enter the amount to deduct each pay period.

Note. Use the fields in the Repayment Schedule group box to define a standard repayment schedule. If you want to define a one-time override to the scheduled repayment amount, enter the override amount using positive input.

End Date

Enter a date after which the repayment deduction should no longer be processed.

Other Overrides

Use the fields in this group box to override values associated with the selected repayment deduction element on the Deduction Name page.

See Defining Calculation Elements, Defining Element Names.

Non-Payroll Repayment Event

Use the fields in the Non-Payroll Repayment Event group box to record additional, non-payroll repayments made by a payee. These are deductions that are not included in the regular schedule of repayments and that do not reduce the amount of net pay.

Note. Do not use the fields in the Non-Payroll Repayment Event group box to deduct additional, one-time repayments through the regular gross to net process. If you want to define an additional, one-time repayment to be included in the regular gross to net process, create a positive input entry for the repayment deduction with an action type of Additional.

Effective Date	Enter an effective date. This date determines when the additional repayment payment is processed by the system.
Pay Group	Specify the pay group of the payee for whom you are processing the additional repayment deduction.
Calendar ID	Specify the calendar in which you want the additional repayment to be processed. The calendars available for selection are those associated with the pay group identified in the Pay Group field.
Adjustment Element	Identify the deduction you have defined to process the additional repayment. You can use the delivered deduction (LOAN AD PYMT) or one that you have defined yourself.
Payment Amount	Enter the amount of the additional repayment. This amount reduces the repayment balance but has no effect on net pay.
Payment Reason	Enter a reason for the additional loan payment. Valid values are: Employee Payment Loan Forgiven Interest Adjustment Loan Cancelled
Payment Reference	Enter a payment reference. The payment reference is typically the number on the additional repayment check. It enables you to identify the payment.

Entering One-Time Overrides

When entering overrides for repayment deductions using the One Time (Positive Input) component, you must specify the repayment ID (LNS VR ID) of the loan for which you are entering the override.