Payroll Management

Payroll Definition

Consolidation Sets

Consolidation sets are the means by which you label payroll runs for further 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; for example, to pay leavers. You can decide whether to consolidate an additional run with the regular run or switch it to a special set.

Consolidation sets are also used 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.

Changes to a Consolidation Set

Consolidation sets facilitate the selective post-run processing of different payrolls. For example, 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 Assignment Sets

Period Types and Calendars

Since a payroll has only one pay frequency, you must define at least one payroll for each pay frequency you use. The following table shows the valid period types for pay frequency.

Period types and pay frequency table:

Payroll Period Types	Periods per Year
Semi-Year	2
Quarter	4
Bi-Month	6
Calendar Month	12
Lunar Month	13
Semi-Month (not available for UK users)	24
Bi-Week	26
Ten-Day	36
Week	52

Note: For Swedish users: Only Bi-Month, Calendar Month, Bi-Week, and Week payroll period types are available.

For Spanish users: Only Calendar Month payroll period is available.

Assignment Sets

There are three uses of assignment sets in Oracle HRMS:

• 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 an Assignment Set by Including or Excluding Assignments, Oracle HRMS Enterprise and Workforce Management Guide

Defining a Payroll

Use the Payroll window to define a payroll, including its calendar and valid payment methods.

To define a new payroll

1. 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.

2. Enter the payroll's name and select its period type from the list.

3. 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.

4. 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.

   • The Check Date, sometimes called Pay Date, is the date of constructive receipt of pay, on which paychecks become negotiable.

   • The Scheduled Run Date is the date scheduled for the Regular run of this payroll each period.

   • The Cut Off date, included for your reference, is the final date for entering or changing payroll information before a run.

   • 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).

5. 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.

6. 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.

7. In the Costing region, you can enter information about the set of books and suspense account holding costing information for this payroll.

   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

8. 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.

9. 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.

10. If you are an Oracle Payroll user, enter the Statutory Information field to open the Statutory Information window.

    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.

11. Save your work.

12. Choose the Period Dates button to view the calendar generated for your payroll. In the Period Dates window:

    • 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.

13. Choose the Valid Payment Methods button to add valid payment methods for this payroll.

    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

Payments and Distributions

Cash Management and Oracle Payroll

Oracle Cash Management manages and controls the enterprise cash cycle. The Cash Management auto reconciliation matches Oracle Payroll against bank statement lines if the transaction meets the following criteria:

• The Oracle Payroll payment number matches the statement line payment number.

• The Oracle Payroll payment amount matches the statement line payment amount.

Cash Management accesses a view of payments generated by Oracle Payroll and compares it against the information on the bank statement. This process generates error messages on mismatched transactions.

Each time a new payment method is created, the bank details transfer to Oracle Accounts Payable. When defining a payment method, you must enter the GL Cash Account field to work with Cash Management.

Important: Because payment method details are passed to Accounts Payable from Payroll, it is important to ensure that you are entering this information correctly. If you inadvertently enter incorrect details, you could end up with reconciliation issues later.

Cash Management is available only for the Payroll payment methods of checks/cheques and electronic fund transfers (such as NACHA in the U.S, Direct Deposit in India).

Important: If you want to use Cash Management fully, you must install Oracle Accounts Payable and Oracle Accounts Receivable due to the interdependency of the products. All accounting functions take place in Accounts Payable and Accounts Receivable, and Cash Management provides the engine for reconciliation and forecast.

Defining a Payment Method

Use the Organizational Payment Method window to define payment methods for your enterprise.

From this window you:

• Supply the name and starting date of your payment method.

• Enter the details of the source bank account from which your enterprise makes the payment.

• Specify the General Ledger (GL) accounts that hold reconciliation and error details for the payment method.

• Handle costing for the payment method. For example, you can specify whether to transfer the costs to GL, and whether costing applies to cleared payments only, uncleared payments only, or a combination of cleared and uncleared payments.

• Confirm that your source bank account in Oracle Payroll is the same bank account that Oracle Cash Management uses to clear your payments. This confirmation assures you that you are operating with a single consistent bank account rather than with duplicate accounts that introduce accounting errors.

To define a payment method

Supply a name and start date for your payment method

1. Set your effective date so that it reflects the date when you want to begin using this payment method.

2. Enter a name for the payment method, and select the payment method type.

   For a third-party payment method, always select the type Check/Cheque.

3. The default currency for your business group displays automatically. If an alternative currency exists for your payment method, you can select it at this point.

4. If your payment method controls payments to a third party such as a benefits carrier or garnishment receiver, check the Third Party Payment box.

Enter the source bank details for your payment method

5. Navigate to the Source Bank tab. The Country for your source bank account displays automatically.

6. Enter the Bank Details field to open the Bank Details window. Enter information about the account from which your enterprise intends to make payments.

   If you are using Cash Management, include the following information:

   • Account Name

   • Account Number

   • Type

   • Bank Name: if this already exists, enter the name exactly as it appears in Accounts Payable.

   • Branch: if this already exists, enter the name exactly as it appears in Accounts Payable.

   Warning: Always review the account setup for Oracle Accounts Payable before you define the account in Oracle Payroll. The details for your Payroll account must exactly match the account details in Accounts Payable. Otherwise, Accounts Payable creates an extra account with marginally different details. This duplicate account introduces errors when you reconcile payments between Payroll and Accounts Payable..

Specify What Type of Payments to Cost for This Payment Method

7. Navigate to the Costing tab. Each check box indicates a particular type of payment. Check the boxes for each type of payment that you want to cost. When you subsequently run the Costing of Payment process, it costs each type of payment as you have indicated. The entries that you make for an individual check box can imply automatic checking of related boxes. Your choices are:

   • Cost Payment - check this box to specify that you want to cost only un-cleared payments for this payment method.

   • Cost Cleared Payment - check this box to specify that you want to cost only cleared payments for this payment method. If you check this box, the Cost Payment box is also checked by default.

   • Cost Cleared Voided Payment only - check this box to specify that you want to cost any voided payments that have also been cleared by Oracle Cash Management. If you check this box, the Cost Payment and Cost Cleared Payment boxes are also checked by default.

   • Exclude External/Manual Payment - check this box to exclude any external/manual payments from costing. This exclusion is useful if you are using this payment method as a dummy payment method to cancel a previous payment, or if you are making a payment by cash. If you check this box, theCost Payment box is also checked by default.

   • Transfer to GL - check this box to specify that costed payments should transfer to General Ledger. If you check this box, the Cost Payment box is also checked by default.

Specify the GL Accounts for This Payment Method

8. Navigate to the General Ledger tab.

9. Select Set of Books to indicate the set of books to use if you intend to reconcile payments using Oracle Cash Management.

10. Select the GL Control Account

11. Select GL Cash Account to indicate the cash account to use for the reconciliation of payments.

    The entry for Description is entered by default, depending on what you enter as the GL Cash Account details.

12. Select the Cash Clearing Account.

13. Select the Error Account.

    When you first specify the GL accounts for a bank account, these then become the default GL accounts for any other payment methods that use the same bank account. The defaults apply for all new payment methods using the bank account. They also apply retrospectively for any existing payment methods that were already using the same account. However, you can override these defaults by entering your preferred GL accounts on the General Ledger tab.

    At this point, check that your Payroll setup and Cash Management setup are fully integrated.

    See Setting Up Oracle Payroll for Oracle Cash Management Integration, Oracle Cash Management

    See Cash Management: Checklist, Oracle Cash Management

Confirm that you can reconcile payments in Cash Management

14. Navigate to the Cash Management tab. You cannot change the information on this tab, but you can confirm that your GL accounts are correct.

15. To confirm that Oracle Cash Management is operating with the same source bank account that you are using in Oracle Payroll, view the check box. If the box is checked, then Oracle Cash Management holds the bank account for this payment method, and you can reconcile payments in confidence that you are using an identical account in Payroll, and Cash Management.

    However, if the box is not checked, this indicates that Oracle Cash Management does not hold the details for your Payroll account. This may indicate that duplicate accounts exist and you should exercise caution when you reconcile your payments.

Enter further information for the payment method

16. Enter Further Information to determine how to process this payment method. Click in the Further Information field to see the range of further information for your enterprise.

Setting Up Statement of Earnings and Payslips

Setting Up The Statement Of Earnings

Oracle HRMS enables you to view the online statement of earnings. To enable the statement of earnings to display the values correctly, you must complete several tasks.

To set up the statement of earnings:

1. Enter a user category in the SOE Information EIT at the business group level. This user category should be set as the profile value for the profile PAY: Statement of Earnings User Category. See: Entering SOE Information

2. Create a user category through the lookup SOE_USER_CATEGORY. See: Using User Types and Statuses, Oracle HRMS Configuring, Reporting, and System Administration Guide

3. Set the value of the user category you created as the profile value for profile PAY: Statement of Earnings User Category. See: User Profiles, Oracle HRMS Configuring, Reporting, and System Administration Guide

4. Add the predefined element sets FI_SOE_EARNINGS_ELEMENTS and FI_SOE_DEDUCTIONS_ELEMENTS to the SOE Information EIT at the business group level. See: Entering SOE Information

5. Create an element set with the elements that you want to show in the Information region of the SOE. See: Defining an Element or Distribution Set, Oracle HRMS Compensation and Benefits Management Guide

6. Add the elements that are part of the element set you created and the balances you want to the SOE Detail Information EIT at the business group level as the application uses this extra information type to determine the elements, input values and amounts to be displayed in the Information region of the SOE. See: Entering SOE Detail Information

7. Link the predefined balance attribute FI_SOE_BALANCE_ATTRIBUTES to the business group. See: Entering SOE Detail Information

8. Define the attributes for the balances using Balance window. See: Defining User Balances, Oracle HRMS Compensation and Benefits Management Guide

9. Restart the Apache server before checking the SOE to ensure that the SOE displays your requirements.

Viewing Statement of Earnings

Oracle Payroll enables you to view an employee's statement of earnings (pay advice) without having to run the Pay Advice report.

You do this using the Statement of Earnings window.

There are various ways to access statement of earnings information. The information displayed may vary depending on whether you have run the PrePayments process or just a payroll run.

The information displayed in the Statement of Earnings window reflects the information in the printed pay advice.

The payroll run generates four types of Statement of Earnings (SOE):

• Master Assignment Action SOE for each employee and shows aggregate Year to Date balances

• Regular Payroll Run SOE for each employee and shows Period to Date and Year to Date balances

• Separate Check SOE only if employee has an element with Separate Check input value set to Yes

• Tax Separate Run SOE if employee has an element(s) with any of the following input values:

  • Separate Check set to Yes

  • Tax Separately set to Yes

  • Deduction Processing is set to other then All

Canada only: The Payroll Run SOE displays one "Master Assignment Action" master record and multiple records with second and third layer run types.

If you are processing Multiple Assignment Payments, then the PrePayment Statement of Earnings displays consolidated earnings and deductions information. The header information displayed on the Statement of Earnings is obtained from the primary assignment; however, if this assignment is not processed, then the header information is taken from the first assignment processed in the PrePayment process.

To view the last payroll with PrePayments run against it

Perform one of the following:

• Select View | Statement of Earnings.

• From the Assignment window, choose Others and select Statement of Earnings.

• Choose the Statement of Earnings window in Fastpath.

To view the most recently run QuickPay results

1. From the Assignment window, choose Others and select QuickPay.

2. Choose View Results, and select Statement of Earnings from the View Results window.

To view the statement of earnings information without running PrePayments

See Viewing Assignment Process Results for an Assignment or Viewing Assignment Process Results for a Payroll Assignment.

Setting Up Payslip Information and Generating Payslips

You need to identify any additional information you want to appear on your payslips using payslip balances and elements. Once you have identified the information to archive and display, run your regular payment and archive processes and generate your payslip for printing or viewing online.

To set up your payslip

1. Select the payslip balances and elements to be included in your payslips.

   See: Entering Payslip Information, Oracle HRMS Enterprise and Workforce Management Guide

   For UK, Netherlands, and South Africa: Enter the information balances and elements through the following:

   See: Identifying Balances for the Payslip, Oracle HRMS Enterprise and Workforce Management Guide and Identifying Elements for the Payslip, Oracle HRMS Enterprise and Workforce Management Guide

   For Ireland: Enter the balances and elements information in the SOE Balances and SOE Elements windows.

   See: Selecting SOE Balances, Oracle HRMS Enterprise and Workforce Management Guide (Ireland) and Selecting SOE Elements, Oracle HRMS Enterprise and Workforce Management Guide (Ireland)

2. For online payslips, enter self-service preference information to indicate how you want to view them. You can specify these settings at the organization, location, and person levels.

   See: Entering Self-Service Preference Information, Oracle HRMS Enterprise and Workforce Management Guide, Location Extra Information Types, Oracle HRMS Enterprise and Workforce Management Guide, and Person Extra Information Types, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide

3. Configure your online payslip to view through Oracle Self-Service.

   See: Online Payslip, Oracle Self-Service Human Resources Deploy Self-Service Capability Guide

   US, Canada, Mexico, and UAE only: Oracle Payroll uses an RTF template to produce the online payslip through XML Publisher. You can use the default template or create your own.

   See: Oracle XML Publisher Administration and Developer's Guide and Oracle XML Publisher Report Designer's Guide.

   For Ireland: To include the regular payment date of the payroll period in your online payslip, set the Visible property of the Regular Payment Date field to Yes.

4. US, Canada, Mexico, and UAE only: Oracle Payroll provides the ability to customize the content of your employee payslips to suit your business needs. Prior to making any changes, however, you should review the default content to best determine what changes you require. See: Payslip Region Information, Oracle HRMS Payroll Processing Management Guide (Mexico)

   To change balances or include additional balances on the payslip:

   1. From the Total Compensation menu, select Basic and then Balance.

   2. Query for the element whose balance you want to add, and click Attribute.

   3. Click on a new row under Attribute, and choose the attribute you want to display from the list of values. This represents where the current balance will appear on the payslip.

   4. Choose a dimension from the list of values.

   5. To delete an entry, select the row and click Delete.

   6. Save your changes.

   Note: These changes do not take effect on the payslip until you rerun the Payroll Archiver Process for the affected payroll period.

Generating the Payslip

You must have completed the payroll runs, prepayments, and payment processes prior to generating the payslip.

5. Run the archive process to gather the latest payroll information.

   See: Extracting Information to Appear on the Payslip

6. You can view the payslip online through Self-Service.

7. Print your payslips in the usual way. Users in the Netherlands and China, run the payslip report to produce a formatted report ready for printing and sending out to your employees.

   See: Printing the Payslip, Oracle HRMS Payroll Processing Management Guide

Extracting Information to Appear on the Payslip

You run the payslip archive process to extract and gather relevant information to appear on your employees' payslips. The archiver accesses the payslip information for the dates you select and copies the information across to storage archive tables, where it is picked up and converted into a format for printing and distributing to employees or for viewing online through the self service application.

Run this process after each payroll period to enable Self-Service. You must complete the payroll runs, prepayments, and payment processes before you can run the payslip archive process.

Netherlands, US, and Mexico only: If you are producing paper reports, use this process to view your current payslip.

Run the payslip archiver from the Submit Request window.

To run the payslip archiver

1. Select your country's payslip archive process in the Name field.

   Canada, China, and Netherlands: Select the Payslip Archiver.

   India: Select the Payroll Reports Archive (India).

   Ireland: Select the IE Legislative Reports Generator. See: Running the Legislative Reports Generator, Oracle HRMS Payroll Processing Management Guide (Ireland)

   Mexico: Select the Payroll Archiver. See: Managing the Payroll Archiver, Oracle HRMS Payroll Processing Management Guide (Mexico)

   South Africa: See: Pay Advice Generation - Self Service (South Africa), Oracle HRMS Payroll Processing Management Guide (South Africa)

   UK: See: Payslip Generation Self-Service, Oracle HRMS Payroll Processing Management Guide (UK)

   US: See: Managing the Payroll Archive, Oracle HRMS Payroll Processing Management Guide

2. In the Parameters window, select a payroll name and consolidation set. This selects the employees for whom you want to run the report. When you select a payroll, the default consolidation set is displayed.

3. Enter the start and end dates for the period of time you want the information extracted. You typically run this process for the same dates you ran your payroll.

4. India: Select whether you want to mail individual payslip or view consolidated payslips in the Generate Payslip field.

5. Choose Submit.

After running the Payroll Archiver, you can use the Payroll Actions Not Processed report to see what employees (and corresponding payroll processes) were not archived but did fall within the report's parameters.

Payroll Statutory Deductions and Reporting

Tax, Statutory Deductions, and Involuntary Deductions Information

Oracle HRMS supports the calculation of the following types of deductions:

• Income Tax

• Employer Social Security Fee

• Pension Insurance Contribution

• Accident Insurance Premium

• Unemployment Insurance Fee

• Group Life Insurance Premium

• Court Orders

• Union Dues

Income Tax

Employers must always withhold tax from any wages paid. The personal tax card indicates the amount of withholding tax, or, for employees with limited tax liability, the amount of tax at source. You can use Oracle HRMS for the following tax cards:

• Cumulative Tax Card

• Periodic Tax Card

• Extra Income Tax Card

• Extra Income with Limits Tax Card

• Scaled Tax Card

• Flat Rate Tax Card

• Tax at Source Tax Card

• No Tax Card

When calculating taxes for periodic tax cards, the employer uses the cumulative calculation system for the yearly income. Once chosen, the employer must use the same calculation method throughout the tax year for all employees.

At the beginning of every tax year, employers send a tax card request, with all the employees' information to the tax administration, for electronic tax card upload. The tax administration sends back the tax card information for all the relevant employees. You can use Oracle HRMS to request tax card information for your employees, and upload this information ready for tax calculation.

See: Uploading the Tax Card

You can include these types of earnings when you calculate income tax for your employees:

• Regular Earnings

• Bonus

• Benefits in Kind

• Travel Expenses

See: Setting Up Income Tax Deduction

See: Setting Up Benefits in Kind

See: Setting Up Travel Expenses

Finnish payment standards allow the employer to execute the payment process for all the employees simultaneously. Oracle HRMS generates a payment file to send to the employer's bank for electronic transfer of funds from the employer's bank account to the employees' accounts.

See: Setting Up Electronic File Transfer (EFT)

Oracle HRMS also supports the manual processing of negative payments. Negative payments may occur in Finnish payroll processing. Typically, negative salary occurs when after-tax deductions exceed the net salary.

See: Setting Up Negative Payments

Social Security Fee

Social security fee consists of social security fee and state pension contribution. The employer pays the social security fee through the payroll. Some employers are exempt from paying the social security fee, but still need to track the amount they would pay without the exemption. Since the tax percentage includes the employee's social security fee, Oracle HRMS does not process the fee separately in payroll.

See: Setting Up Social Security Fee

Pension Insurance Contribution

There are different pension insurance types and each type covers a different group of people. Oracle HRMS supports one pension insurance type:

• TyEL: This pension insurance type covers all private sector employees

Oracle HRMS supports the capture of the pension insurance policy information and the calculation of the pension insurance contribution.

See: Setting Up Pension Insurance Contributions

Accident Insurance Premium, Unemployment Insurance Fee, and Group Life Insurance

Accident Insurance Premium: There can be only one accident insurance policy per legal employer but a local unit can have its own accident insurance policy. Oracle HRMS supports the capture of the accident insurance policy information and the calculation of the accident insurance premium.

Unemployment Insurance Fee: In Finland, the employer calculates and makes unemployment insurance fee deductions from the employees and processes the unemployment insurance premium along with the accident insurance premiums. Oracle HRMS records this information for end-of-year reporting.

Group Life Insurance Premium: The employers must pay the group life insurance premium along with the accident insurance premium. Oracle HRMS records this information for end-of-year reporting.

See: Setting Up Insurance Premiums

Court Orders

Oracle HRMS supports the capture of the relevant information to enable the deduction of the amount that must be paid to the employee's magistrate office.

See: Setting Up Court Orders

Union Dues

Collective agreements determine the statutory deductions of union membership fees. Oracle HRMS captures the trade union information at the person level and organization level.

See: Setting Up Union Dues

Setting Up Income Tax Deduction

Oracle HRMS supports the capture of the provincial tax office name and address as well as bank account details to enable the employer to transfer the tax deductions correctly.

Oracle HRMS also enables you to request and upload employee tax information from the tax administration. The application will extract the tax information for each employee assignment. The application also provides you the option to create formulas that can override the standard number of tax days.

Important: You can update the tax information manually if an employee receives a new tax card during the tax year, but this action resets all tax balances for the employee. You will lose all previous tax information for the employee.

1. Create your provincial tax offices.

   See: Organization Classifications

   See: Setting Up Finnish Organizations

2. Enter the employee's tax information through the Tax Information tab on the Assignment window. See: Entering Additional Assignment Details (Assignment Window)

3. Link the Tax element to your payroll.

   Note: You have the option to link the Tax Days Override element to the payroll if you need to prorate the tax days for employees who joined some time during a month or if you want to change the number of tax days. This is only applicable to employees with a Periodic tax card type.

   Note: The periodic calculation uses the standard tax days for each period, but there are some circumstances where an abnormal pay period occurs – this is where the tax days for the period is either greater or less than the standard number of tax days. You can create your own formulas for overriding the standard tax days and select it from the Further Payroll Information window. The application gives the priority to the formula and then checks the element entry.

   See: Defining Element Links

4. Attach the Tax element to all employee assignments. You need to attach the Tax Card and Tax Days Override elements to the employee's primary assignment.

5. Upload the tax card details into your application.

   Note: Once you upload the tax card information correctly, the application extracts the employee tax information and stores it in the available elements.

   See: Uploading the Tax Card

Uploading the Tax Card

Oracle HRMS enables you to request the employees' tax cards for the new tax year. You send the tax card request to the tax administration in the form of a flat file that contains the employee details. Every employee assignment appears as a separate row in the generated flat file.

The tax administration sends back a file, which is the same request file with the tax information added to every employee assignment record. The tax administration sends the electronic tax cards in a fixed file format. You upload the tax card information into the application.

If an employee's tax card changes during the tax year and if the tax administration issues a new tax card, you will have to update the new tax card manually into the application.

1. To send the tax card request:

   1. Convert the flat file that you receive from the Finnish authorities to a text file (with extension .txt).

   2. Place the converted file in a directory readable by the database. This is a system administration task.

      See: Additional Implementation Steps for Finland

   3. Choose the Single Request option.

   4. Query the Finnish Tax Card Requisition request in the Submit Request window.

   5. Enter the information for the following parameters:

      • Magnetic Filename

      • Legal Employer

      • Local Unit

        Note: If you select the local unit, the Finnish Tax Card Requisition request extracts the data for only that local unit. If you do not provide this parameter, the request extracts the data for all the local units, having sub-disbursement numbers, that belong to the legal employer.

      • Electronic Transfer Provider ID

   6. Submit the request.

   7. Close the window.

2. To upload the tax card:

   1. Choose the Single Request option.

   2. Query the Finnish Tax Card Upload request in the Submit Request window.

   3. Enter the information for the following parameters:

      • File Name

      • Batch Name

      • Batch Reference

   4. Submit the request.

   5. Close the window.

   6. Choose the Single Request option again.

   7. Query the Data Pump Engine request in the Submit Request window.

   8. Enter the information for the following parameters:

      • Batch Name

      • Validate

      • Action Parameter Group

   9. Submit the request.

   10. Close the window.

Setting Up Social Security Fee

Oracle HRMS calculates the employer's social security fees and processes it along with the tax information.

1. Create your provincial tax offices and legal employers.

   See: Organization Classifications

   See: Setting Up Finnish Organizations

2. Enter the additional information for the legal employers.

   See: Entering Legal Employer Details

3. Link the Social Security element to your payroll.

   See: Defining Element Links

4. Link the Social Security element to the employee's assignment.

Setting Up Negative Payments

Negative payments occur in Finnish payroll processing if after-tax deductions exceed the net salary. Oracle HRMS provides you with the necessary elements and balances to process negative payments manually.

Oracle HRMS provides you with three arrears elements:

• Tax Arrears

• Pension Insurance Arrears

• Unemployment Insurance Arrears

To adjust the arrears for any of these components manually, you enter the amount in the respective predefined payment arrears elements that Oracle HRMS provides. These are:

• Tax Arrears Payment

• Pension Insurance Arrears Payment

• Unemployment Insurance Arrears Payment

Note: The arrears payment functionality does not change the tax paid balance or statutory deductions, but populates the respective arrears payment balances.

1. Link the relevant payment arrears elements to your payroll.

   See: Defining Element Links

2. Link these payroll arrears elements to the employee's assignments.

   See: Making Manual Element Entries

Payroll Processing and Analysis

Process Part of a Payroll

Assignment Sets

Occasions when you need to use assignment sets for the payroll run include:

• You need to process the night shift earlier than the rest of the payroll as they must receive their pay advices the night before the rest.

• You need to process a correction run, as entries were not received in time for the normal run and the overtime must be paid this period.

• You want to process an additional run for a long service award, which the enterprise is presenting as a cheque/check to each qualifying employee.

To fulfil these requirements, you can select from a range of assignments:

• Include all assignments

• Include or exclude individually identified assignments

• Use a formula to include or exclude certain groups of assignments

Element and Distribution Sets

With a normal payroll run you would want to include all elements, but for a long service award bonus you would want to include only the bonus element and the statutory elements. You first calculate gross pay for ascertaining the gross amount to transfer into the payroll account. Then you complete the gross to net calculation.

You can select element sets as follows:

• Include all elements

• Include or exclude individually identified elements

• Include or exclude classifications of elements.

Canada only: When creating a Run set, you need to explicitly add the Canadian Tax recurring element to your element set.

US only: When creating a Run set, you need to explicitly add the VERTEX recurring element to your element set.

The predefined elements for Oracle Payroll are processed for every payroll run in which they have been included. The deductions are recalculated using the period totals, the amount already paid in previous runs is deducted, leaving the remainder as the deduction for the new payroll run.

QuickPay

QuickPay enables you to carry out payroll processing for individual employees. You can use QuickPay to pay employees who are leaving and who require payment immediately. If an employee asks what their net pay will be this month, you can run QuickPay to find the answer, then roll it back to remove all results from the database.

QuickPay: Two Options for PrePayments:

Once the QuickPay run has a status of Complete, you have a choice of two options for post-run processing:

• Include the QuickPay in the batch prepayments processing for the assignment's payroll.

  Choose this option if, for example, you have a new employee who joins after the payroll run for the current period has taken place. Instead of rolling back the whole payroll and resubmitting it with the new employee added, you run QuickPay instead so that you can include the new employee in the consolidation set for batch prepayments.

• Start the PrePayments process from the QuickPay window, if necessary overriding the default payment method.

  Choose this option if, for example, an employee is leaving and is waiting to be paid by cash or cheque/check.

Troubleshooting QuickPay: Concurrent Manager

When you start the QuickPay process, the screen freezes, and you cannot delete or update the QuickPay definition until the process completes.

You may receive one of the following error messages:

• The process has not started

  This means either that the concurrent manager has not been started, or that there are other requests of a higher priority. Ask your system administrator to start your request or change its priority.

• The process has started but has not finished

  Ask your system administrator to investigate the reason for this.

Starting a Payroll Run

You start a payroll run in the Submit Requests window.

To run a payroll

1. In the Name field, select the name of your payroll run process.

2. In the Parameters window, which opens automatically, select the payroll.

3. Select the default consolidation set name for the payroll, then select the current payroll period display.

4. Select a new consolidation set for the run if required.

   Use the consolidation set to control post-run processing of the results.

5. Select the payroll period for the run.

6. Select an element set and assignment set if required.

   US only: Make sure that you have included the VERTEX seeded recurring element in your element set if you are using an element set.

7. Select a run type.

8. If your legislation supports Regular and Supplemental runs, then select R for a Regular run or S for a Supplemental run.

   India only: Select "Bonus" run type for paying bonus.

9. You can optionally enter a message to appear on the statements of earnings for this run if your SOE is designed to support such a message.

10. Choose Submit.

Running the PrePayments Process

Run this process when you want to do one of the following:

• Distribute employee pay over more than one payment method using either a percentage or monetary split. You define the amount or percentage to be paid by each method for each employee in the Personal Payment Method window. You can also indicate that payment methods should take account of run types and run types at personal level.

• Override the default payment methods. For example, you may need to run a supplemental payroll for which the distribution between payment methods will be different from that specified for the regular run. When you override the defaults, the payments for the supplemental run only are distributed according to the override payment method that you specify.

• If Multiple Assignments is enabled for your Payroll, the PrePayments process creates one regular cheque for all assignments and one cheque for each separate payment. Assignments must be included on the same payroll in the same payroll period or they will not be included.

Note: The Net Pay from each assignment is deposited into the payment method account for the primary assignment unless the primary assignment is not processed. If it is not processed and the secondary assignment does not have a personal payment method, the employee receives a cheque.

Additional Information: You cannot delete personal payment methods if a PrePayment process is run.

Canada only: The PrePayments process creates different results depending on the setting of the Payroll Archiver Level option, which is set at the business group level. If you set it to "Tax Group," PrePayments consolidates the payment for all GREs of an assignment (which must belong to the same tax group), and Cheque Writer/Deposit Advice generates only one cheque or deposit (this can happen only at the beginning of the year, after running the last payroll for the previous year and before running the first payroll of the current year). If you set it to "GRE," PrePayments creates separate payments for each GRE, and Cheque Writer/Deposit Advice generates a cheque or deposit advice for each GRE.

See: Entering Payroll Archiver Level Information, Oracle HRMS Enterprise and Workforce Management Guide

You run this process from the Submit Requests window.

To run the PrePayments process

1. In the Name field, select PrePayments.

2. In the Parameters window, select the name of the payroll or consolidation set to run the process for.

   When you select a payroll, the default consolidation set is displayed.

3. Enter the start and end dates of the time span for the prepayments processing to cover.

   Note: If you specify the end date and not a start date, the process automatically uses the start date of the period for the end date you specified.

4. If required, enter an override payment method. The method you select overrides all other payment methods for this processing.

5. Choose OK.

6. Choose Submit

Setting Up Electronic File Transfer (EFT)

You submit employee and payment details to the bank in the form of a bank transfer file.

The application provides you with three formulas to set up the payment file. These are:

• FI_EFT_HEADER

• FI_EFT_BODY

• FI_EFT_FOOTER

1. Record the available formula details to the payment method.

   Note: You must use the payment type FI Direct Deposit - EUR.

   See: Defining a Payment Method

2. Run the payroll process.

   See: Starting a Payroll Run

3. Run the pre-payment process.

   See: Running the Pre-payment Process

4. Submit the EFT request using the Submit Request window.

   See: Running the EFT Process

5. View the output of the EFT file.

Running the EFT Process

Oracle HRMS provides the concurrent program Finnish Payment Output File to run the Electronic File Transfer process.

You run the Payment Output File from the Submit Request window.

To run the Payment Output File

1. Select the Finnish Payment Output File in the Name field.

2. In the Parameters window, optionally enter the payroll name.

   Note: You can restrict the processing of assignments to the specified payroll on the effective date.

3. Select the consolidation set.

4. Enter a start date for any prepayments to the employee.

5. Enter the effective date.

6. Select a payment method.

7. Enter the process date or date of transfer.

8. Click Submit.

Payroll Reporting

Payroll, Deduction, and Payment Reporting Overview

You can run the following payroll, deduction, and payment reports:

• Account Receipts Report

• Monthly Tax Return Report

• Pay List Report

• Pay Sheet Report

• TyEL Monthly Fee and Disbursements Report

• TyEL Yearly Fee and Disbursements Report

• Union Membership Fee Deduction Report

• Yearly Documents of Paid Salaries Report

Archiving and Reporting Overview

You generate the payroll reports after running the required payroll processes. As shown in the preceding graphic, running reports is basically a two-step process that requires:

1. Archiving the relevant data for the report.

2. Running the report request.

After archiving the report data once, you can run the same report again without re-archiving. The application searches for the most recent archived data. For an up-to-date report, always perform both steps. You can choose to run the audit and EFT (final) reports for the following reports:

• Finnish TyEL Monthly Fee and Disbursements

• Finnish TyEL Yearly Fee and Disbursements

• Monthly Tax Return Report

• Yearly Document Paid Report

• Union Membership Fee Deduction Report

Overtime Reporting:In addition to the regulatory reports, you can also track employee's overtime and generate reports. During implementation, you can set up balances for overtime and add your own solution for overtime reporting. You can link the predefined balance attributes to the overtime reporting solution. To report the overtime values for a pay period or year, the application picks up values using the balance attributes.

For Finland, you must upload the following two predefined global values for overtime:

• FI_QUARTERLY_OVERTIME_LIMIT: Holds the quarterly overtime limit which the employee is not allowed to exceed within a 3-month period (quarter of a year).

• FI_YEARLY_OVERTIME_LIMIT: Holds extended yearly overtime value which is an absolute maximum per employee.

Running the Archiving and Reporting Processes

Running the Archiving for Pay Related Processes

For an overview of the archiving process, see: Payroll, Deduction, and Payment Reporting Overview

To run an archiving process

1. Choose the Single Request option.

2. Query the appropriate archive request in the Submit Request window.

3. Enter the parameters required for the archive.

   Note: Most processes allow you to save the results of this archive for future use by selecting Yes in the Archive Option field.

4. Submit the request.

5. Close the window.

Running the Report for Pay Related Processes

For an overview of the reporting process, see: Payroll, Deduction, and Payment Reporting Overview

To run the report

1. Choose the Single Request option.

2. Query the relevant report request (audit or EFT) in the Submit Request window.

3. Enter the request parameters.

   Note: The Test Run field is available only when you run the Finnish TyEL Yearly Fee and Disbursements EFT Report. The Test Run parameter defines whether you want to generate the report for test purposes or you want to send it to the relevant insurance provider. The data generated by the report is maintained within the system only if you select the Yes option.

4. Submit the request.

5. Close the window.