A payroll is a set of employees whose pay you process with a single frequency, for example, weekly or monthly. You can define as many payrolls as you require to meet the pay policies of your enterprise. You put an employee on a payroll by making an assignment to the payroll.
You can also assign employees to other employee groups: for example, groups to indicate membership of a union or employment based sports club.
To enable you to set up payrolls correctly, you need to understand these key concepts:
Element sets and distribution sets, Oracle HRMS Compensation and Benefits Management Guide
See Reports and Processes in Oracle HRMS, Oracle HRMS Configuring, Reporting, and System Administration Guide
Yes, Oracle Payroll enables you to pay a single payment to an employee with several assignments within your organization. You enable the payment by selecting the Multiple Assignment check box on the Define Payroll window.
Payroll processes and reports are always submitted and always run in the local language only. This means that US and UK payroll reports can only be run in English. Canadian reports can be run in English or Canadian French.
Use the payslip offset on the Define Payroll window to specify the number of days between the completion of your payroll processes and the availability of employee payslips.
Consolidation sets are the means by which you label payroll runs for processing. This enables you to process the results from more than one payroll in a single action. You need only produce one tape per payment method for several payrolls, one set of reports and one set of costing for the whole set.
You can follow this procedure when scheduling additional runs. These are the runs you make in addition to your regular payroll runs (such as, to pay leavers). You can decide whether to consolidate an additional run with the regular run or switch it to a special set.
Use consolidation sets to label assignment sets when you use these for payroll processing. The same choices apply to assignment sets as to payrolls. You can accept the default consolidation set or select a new one when you set the run parameters in the Submit Requests window. You can also change the consolidation set after the run in the Update Payroll Run window.
Consolidation sets also facilitate the selective post-run processing of different payrolls.
After processing three payrolls in one consolidation set, you may want to select just one for immediate post-run processing. To do this, transfer the one you want to process to a new consolidation set.
You may also want to retry a payroll while continuing with prepayments for other payrolls whose status is Complete. This too would require a change of consolidation set for the first payroll.
See: Entering Daily Rates, Oracle General Ledger User's Guide
You can associate a daily rate with a conversion rate type by using predefined rate types such as Spot and Corporate. This means that the conversion rate associated with the rate type is automatically used whenever you perform foreign currency conversions. Some rate types such as Spot and Corporate are predefined. You can also use Oracle General Ledger to define additional rate types of your own.
See: Defining Conversion Rate Types, Oracle General Ledger User's Guide
When you create a business group, the Corporate currency type is predefined for HRMS Intelligence (BIS) and Core HRMS (HRMS Reporting and Payroll Processes). However, you can modify HRMS User Tables so that the default value of Corporate can be overridden for each of the following:
You can run a QuickPaint report for a set of assignments, rather than individual assignments.
You can process subsets of the employees assigned to a payroll. Normally you initiate payroll runs and other post-run processes for one or more payrolls at a time. However, if you need to process smaller groups within a single payroll, you define an assignment set.
You can use a BEE concurrent process to create an identical batch line for each assignment in an assignment set.
There are three ways to define the set:
You can enter selection criteria, which the system generates into a formula. When you use the assignment set, Oracle FastFormula runs the formula to find the assignments that match the criteria. It checks all the assignments in the business group or, if you select a payroll when you define the set, all the assignments to that payroll. When you define the set you can also include or exclude individual assignments to modify the set created by the formula.
Important: To define an assignment set for a benefits eligibility profile, you must enter information about the person to be included or excluded in both the Amendment and Criteria windows.
See: Defining an Assignment Set Using Formula Criteria, Oracle HRMS FastFormula User Guide
You can select individually all the assignments you want to include in the set.
You can start from a full set of all the employees in the Business Group or all the employees assigned to a selected payroll. Then you can exclude individual assignments from the set.
See: Defining a Payroll
You can specify the following general payroll criteria:
Tax Multiple Payments as One: If you make multiple regular payments to employees in a single pay period, this option determines how Oracle Payroll taxes those payments.
Select Yes if you want to base the second payment's taxation on the period to date taxable wages instead of the taxable wages of the current payment.
Select No to calculate federal and provincial tax based on the current payment amount.
Note: When set to Yes, you must enter additional tax amounts for all assignments. When set to No, the additional tax amount is only entered on one assignment.
Terminate Seeded Earnings By: Use this field to select a termination rule for the seeded earnings types Regular Salary and Regular Wages. Your selection here overrides the value selected for the business group.
If you select First Pay After Term Date, Oracle Payroll uses the actual termination date on the end employment form.
If you select Last Standard Process Date, Oracle Payroll uses the Last Standard Process date on the end employment form.
HR/Payroll Representative: If you select Further Payroll Information for the HR: HR/Payroll Representative Source profile option, enter the name of the contact person who should receive workflow notifications from SSHR (such as when an employee enters an exception on the Online Tax form).
When setting up your Record of Employment (ROE) report, you must define the ROE contacts for each payroll in the Further Payroll Information window.
The ROE contacts are defined for each payroll in the payroll further information flexfield. The ROE Contact Person and Telephone fields are mandatory for ROE Interface processing.
You can specify the following ROE report parameters:
ROE Contact Person: This information is reported in Block 16 "For Further Information, Contact". The LOV for the ROE Contact Person will display only those employees that have been hired as of the session date.
ROE Contact Telephone: This information is reported in Block 16 "For Further Information, Telephone Number".
ROE Name of Issuer: This information is extracted from the ROE Web employer registration.
Note: The date of issue does not appear on the ROE worksheet; however, the Effective Date you specify when running the Record of Employment process is transferred to the ROE Web software and appears on the printed form.
Correspondence Language: This information is reported in Block 20 "Communication preferred in".
However, you can set a different currency type for each Business Group. For example, you can select:
A spot rate for Payroll processes to reflect daily exchange rates.
A corporate rate for HR reporting to represent an end-of-month value.
You can define a different exchange rate type in the Table Values window.
To select an exchange rate type for a Business Group
Query the EXCHANGE_RATE_TYPES table.
In the Exact field, select BIS, HRMS, or PAY from the list of values.
Enter the new value for the exchange rate type. The value will usually be Corporate (the default) or Spot, but you may also need to select other predefined GL Exchange Rate Types.
Change the Effective Date for this rate type, or accept the default.
For details of available rate types, see Defining Conversion Rate Types, Oracle General Ledger User's Guide.
You must always select a consolidation set before starting a payroll run. This is because the consolidation set provides essential labelling for each payroll run. This applies even if you are only processing one payroll or one assignment set.
When you have defined a consolidation set, it is then available for selection when you start a payroll run.
You define consolidation sets in the Consolidation Sets window.
To define a consolidation set
Enter the name of a new consolidation set and save.
To delete a consolidation set
Query the consolidation set.
Choose Edit, Delete Record.
You can only delete a consolidation set if it is not the default set for a payroll and if it is not associated with any payroll processes.
Note: Changes you make in this window are for the selected payroll processes only. Default consolidation set and pay advice information continue to apply to subsequent runs.
To change the consolidation set for a payroll
Query the payroll whose consolidation set you want to change.
Tip: Optionally, select the period for which you wish to change the consolidation set by providing a Period From date and a Period To date. If you do not specify a period then the update action will apply to all payroll periods for this payroll
Payroll run information for the payroll displays in reverse order from the last completed run. The Set region displays whether the run was for an element set and/or assignment set.
Note: You can update consolidation set and pay advice information in this window regardless of the status displayed for the payroll run.
Enter a new consolidation set.
Update pay advice date and message information if required.
The pay advice date and message fields are for information only.
To define an assignment set using criteria for a formula
Enter a unique name for the set.
Do one of the following:
If you are defining an assignment set for payroll processing, select a payroll. You cannot process an assignment set drawn from more than one payroll.
If you are defining an assignment set for other purposes, selecting a payroll is optional. If you select a payroll, the formula generated from your selection criteria will select assignments from this payroll only. If you do not select a payroll, the formula will select assignments from the whole business group.
Save the new set and click Criteria.
In the Assignment Criteria window, enter one criterion in each row, and join the criteria with AND or OR in the Condition field.
Field details are:
|No.||The sequence number of each condition in your rule. If you use sequence numbers that are multiples of 10, it will be easier to insert new conditions later.|
|Condition||Leave the first row blank. Enter AND or OR for second and subsequent rows.|
|Database Item||Select database items as variables for your definition. All database items are prefixed by an ampersand [&].|
|Operator||Select operators to determine relationships between database items or values. See the following table for details|
|Value/Database Item||Select database items for the second variable. Alternatively, you can enter a fixed value of the same type as the database item.|
Operator details are:
|Equals||=||Condition is true if both expressions have exactly the same value. For text, the case of the expression must be the same.
For example: "Smith" is not equal to "SMITH".
|Not Equal||!=||Condition is true if the result of the first expression does NOT have the same value as the result of the second expression.|
|Greater Than||>||Condition is true if the first expression is alphabetically after, is numerically greater than, or is a later date than the second expression.|
|Less Than||<||Condition is true if the first expression is alphabetically before, is numerically lesser, or is an earlier date than the second expression.|
|Greater Than or Equal To||>=||Condition is true if either the greater than OR the equal to operator returns a true result.|
|Less Than or Equal To||<=||Condition is true if either the less than OR the equal to operator returns a true result.|
For example: The following is a definition for an assignment set of employees with salaries between 16,000 and 24,000:
|No.||Condition||Database Item||Operator||Value/ Database Item|
Save your criteria, and click Generate to generate the formula.
You can view and edit the formula in the Formula window. Its name is the same as the assignment set name.
If you want to include or exclude individual assignments from the set defined by your criteria, choose the Amendment button. Select the assignments you want to include or exclude from the set.
Note: The list of assignments you see in this window is either all the assignments in the business group or, if you selected a payroll, all the assignments to that payroll. It does not show the assignments matching your criteria since these are identified dynamically each time the formula runs.
Save the set.
To define a set by including or excluding assignments
Enter a unique name for the set.
If you are defining a set for payroll processing, select a Payroll.
Save the new set.
Do one of the following:
If you want to create a small set of assignments, select Include in the Inc/Exc field and select all the assignments for the set.
If you want to start from the full set of assignments for the payroll or Business Group, select Exclude in the Inc/Exc field and select assignments to remove from the set.
Do not create a mixture of Include and Exclude rows if you have not entered criteria and generated a formula.
Save your set.
Set your effective date to a date early enough to handle any historical information you want to enter. Your effective date must be on or before the first period start date of the payroll calendar.
Enter the end date of the payroll's first period, and the number of years for which the system should initially generate the payroll's calendar. You can increase this number later to generate additional years.
Note: Be aware that some processes require the calendar to extend into the future. For example, the PTO Carry Over process requires payroll periods extending to the end of the new accrual term.
When you enter the First Period End Date, make sure that the corresponding start date of the first period is after the start date of the payroll.
In the Date Offset region, you can change the zero default to a negative or positive number of days before or after the period end date. For example, for a semi-monthly payroll, the Cut Off date can be 3 days before the period end date (-3), while the Scheduled Run and Check dates can be 5 and 7 days after this date, respectively. You can also set the Payslip offset to determine when employees can view payslip information.
A payslip offset, reckoned from the completion date for your payroll processes is always a positive number to enable you to prevent employees from viewing payslips before the official payment date. For example, if the payroll processes complete on 15th May, and employees do not receive payment until 20th May, you can enter an offset of 5 to align the payslip date to the payment date.
These offsets are the defaults for the calendar. You can manually make date changes in the calendar (such as when an offset date falls on a weekend or holiday, by choosing Period Dates).
Select a default payment method for employees who have no valid personal payment method. You cannot select a method using magnetic tape because this requires information about employees' bank accounts.
Select a default consolidation set for this payroll. One consolidation set is created automatically when you define your Business Group. Oracle Payroll users can create other consolidation sets for payroll processing.
The information you enter here depends on the setup of your Cost Allocation key flexfield.
See: Setup of the Cost Allocation Key Flexfield, Oracle HRMS Enterprise and Workforce Management Guide
Check the Negative Payment Allowed check box if you want the PrePayments process to include negative payments. If you leave the box unchecked, the PrePayments process ignores negative payments.
Check the Multiple Assignment check box if you want an employee to receive a single payment, for multiple assignments carried out within your organization. However, if a PrePayments process, which runs prior to your effective processing date, already exists you cannot go back and change the Multiple Assignment check box. This box is only visible if the functionality is enabled for your localization.
Note: If you check the Multiple Assignment check box, make sure it remains checked throughout your payroll processing. Oracle Payroll reports in error if some of your payroll processes support multiple assignment processing and others do not.
Your Oracle localization team may have created fields in this window.
Note: The Statutory Information field is not visible if your HR:User Type profile option is set to HR User.
You can view the default offset dates for every period, and you can manually override any of these dates in any record.
You can change the payroll's default Open status in any period to Closed to prevent further element entries. You can also reopen the period if necessary.
Important: Use this feature with caution. When you perform certain important tasks in Oracle HRMS, the system may automatically create or delete element entries. These tasks include hiring and terminating people, and updating assignments. You cannot change any element entries that span a closed payroll period, and so you may be prevented from performing these tasks.
In the Valid Payment Methods window, the default payment method for the payroll appears automatically. You can add other methods. First set your effective date to the date you want the method to become valid.
Note: An employee assigned to this payroll can have any number of personal payment methods chosen from those you enter here for the payroll.
See: Entering Payment Methods for an Employee Assignment in Oracle HRMS Workforce, Sourcing, Deployment, and Talent Management Guide
You can delete a payroll if there are no active employee assignments or element links to it. However, if you have run processing for a payroll it is not advisable to delete it. If necessary, define a new payroll and simply discontinue use of the old payroll.
To delete a payroll
Remove any element links or employee assignments to the payroll.
Query the payroll in the Payroll window, choose Delete Record and Save.
Use the Information Types Security form to add the Payroll Contact Extra Information Type (EIT) to your Responsibility.
See: Responsibilities, Oracle HRMS Configuring, Reporting, and System Administration Guide
Write a formula to specify your criteria for allocating payroll contacts to employees.
See: Sample Formula for Payroll Contact, Oracle HRMS FastFormula User Guide
Run the Allocate Payroll Contact concurrent program. You supply this program with date on which the contact becomes effective, and a formula containing the allocation rules. The program runs as a batch process on all assignments in the business group.
Use the Allocate Payroll Contact concurrent program to generate payroll contact information for your employees. Your enterprise can store multiple methods of allocating a payroll contact. For example, payroll contacts can derive from:
Alphabetical range - where all employees with names from A to E have one named payroll contact, whereas employees with names from F to J have a different contact.
Organizational criteria - where all employees in the Accounting department have one named payroll contact whereas employees in the Marketing department have a different contact.
You store these separate allocation criteria in separate formulas, and then use the Allocate Payroll Contact concurrent program to select the formula that contains your preferred criteria.
To allocate payroll contacts
Enter the effective date. The date that you supply determines which assignments receive a payroll contact. For example, if you enter 18-MAY-2005 the allocation applies for all assignments with this effective date, provided that they meet the criteria that your formula specifies..
Select the formula that contains your allocation criteria. You can select any formula of the Payroll Contact type, and these are the only formula types that appear in the list of values.
Alternatively, you can allocate a payroll contact by navigating to the Extra Assignment Information window, selecting the Payroll Contact information type, and modifying the payroll contact details in the Details descriptive flexfield.
Balance adjustments can be made to any user balance and to assignment level predefined balances. You can make adjustments to balances of any unit type, and when you adjust a balance there is no requirement for you to carry out further processing actions. However, Oracle Payroll processes the results of money balance adjustments in such a way that you can easily pay the value of an adjustment to an employee if you require.
When you save your adjustment, it processes like a payroll run with just one entry, and the value you enter becomes a processed run result. When you select a consolidation set for the adjustment, the system labels the run result for prepayments processing, in the same way that it labels the results of payroll runs and QuickPay runs.
You adjust balances in the Adjust Balance window.
To adjust a balance
Query the assignment for which you want to adjust the balance.
Set the effective date to when you want to adjust the balance.
The window displays your current effective date. If the assignment is to a payroll, it also displays the corresponding payroll processing period.
Select the element whose pay or input values you want to change, and update the entry values as you require.
Select a consolidation set to control further post-run processing.
The default consolidation set displays automatically but you can select another set. This is a required field even for balance adjustments that do not require further post-run processing.
Check the Costed check box and select the Costing field if you want to cost the balance adjustment. This enables you to enter costing details by using the Cost Allocation key flexfield.
Save your changes.
Oracle Payroll applies the adjustment by creating a processed run item equivalent to the adjustment value you entered. The option buttons display the progress of the adjustment's processing.
Note: If the transaction finally shows Error, check that the units of measure for the entry values are correct. If they are, consult your system administrator.