Oracle Payroll enables you to ccalculate an employer's tax liability and deduct the appropriate sums from employee earnings. You can calculate employer and employee tax liabilities for all the taxes and statutory deductions that are applicable to your country. For example, this includes employer liability for state taxes such as State Unemployment Insurance and employee liability for federal, state and local taxes in the US, PAYE and NIC in the UK, PAYE and PRSI in Ireland, Social Security, Unemployment and Complementary Pension in France, Standard and Special tax and Social Insurance in the Netherlands, and so on.
In each instance, Oracle Payroll enables you to enter details of the tax liability and process it at regular intervals.
See: Reports and Processes in Oracle HRMS, Oracle HRMS Configuring, Reporting, and System Administration Guide
Oracle HRMS enables you to record and process the Public Institution for Social Security (PIFSS) social insurance schemes for employees. Additionally, you can record and process additional social insurance deductions to meet PIFSS requirements.
You can calculate the following components of social insurance (SI):
Basic Social Insurance Scheme - Basic social insurance is applicable on SI contributory salary, which includes various elements such as monthly basic salary, housing allowance, transport allowance, and social allowance.
Supplementary Social Insurance Scheme - Supplementary social insurance is applicable on additional wage elements specified by the social insurance board.
Additional Social Insurance Contributions - In addition to basic or supplementary contributions, the Social Insurance Board can authorize further contributory deductions. The authorization letter from the Social Insurance board confirms the total deductable amount, the starting date for deducting the amount, and the deductable amount per month.
Oracle HRMS enables you to manage pension contributions for terminated or suspended employees. If the employer terminates the service of an employee during a month, then no pension is deductible during the month of termination. If an employee is suspended from work because of any legal matter, then the employer will continue to deduct the pension from the employee's salary as a regular employee.
Oracle HRMS enables you to record and process the Public Institution for Social Security (PIFSS) social insurance schemes for employees. To calculate the social insurance deductions, you must complete several tasks.
Specify the business group as the employees whose nationality matches the business group are eligible for social insurance.
Attach the formula for determining SI contributory wage.
Attach the predefined element Social Insurance to the employee for initiating the Social Insurance processing.
Oracle HRMS enables you to generate the payment due for SI, write the data to a file on magnetic tape, and generate a magnetic file containing the monthly contributions and deductions for PIFSS.
To run the PIFSS report, you must complete several steps.
You run this report from the Submit Request window.
To run the PIFSS report
Run the payroll process.
See: Starting a Payroll Run, Oracle HRMS Payroll Processing Management Guide
Select Kuwait PIFSS Report in the Name field to open the Parameters window.
Select the sector for generating the electronic file.
Select the key for the employer who needs to generate the file.
Enter the ID as identifier for the file.
Enter the month and year for which to generate the file.
Click Submit.
Report 166 is a summary report that reflects the monthly contribution of the employer and employee to PIFSS.
Additional Information: Report 166 displays complete monthly contributions to PIFSS irrespective of arrears. Therefore, even if the employee is unable to pay any of the social insurances, the report displays the amount that should have been paid.
You run Report 166 from the Submit Request window.
To run Report 166
In the Name field, select Kuwait Report 166 to open the Parameters window.
Select the legal employer within the business group for which you want to run the report.
Select the contribution month for social insurance.
Enter the reporting year of the contribution month for social insurance.
Enter the basic scheme other amount that the employer should pay, such as arrears, to PIFSS.
Enter the supplementary scheme other amounts that the employer should pay.
Enter the pension contributions other amounts that the employer should pay.
Enter the report 167 other amounts that the employer should pay.
Enter the supplementary insurance installments paid before 1/12/1997.
Note: If you are running this report for the period prior to October 2012, then specify parameters mentioned in Steps 2-5. Ensure to leave the remaining parameters blank, since Basic Scheme Other Amount is same as the earlier parameter Other Amount. You can enter all the parameters if you run the report from 1st October 2012 onwards.
Click the Submit button.
Report 167 displays the details of the additional social insurance installments that PIFSS requests employers to deduct from employees. Run this report for an individual employer to identify the employees who contribute towards Additional Social Insurance.
You run Report 167 from the Submit Request window.
To run Report 167
In the Name field, select Kuwait Report 167 to open the Parameters window.
Select the legal employer within the business group for which you want to run the report.
Select the contribution month for social insurance.
Enter the reporting year of the contribution month for social insurance.
Click the Submit button.
Report 168 displays the employee's movements during a month. The report lists the employees who joined the service, left the service, or moved to a higher salary grade, during the month. Run this report for an individual employer.
Additional Information: Salary refers to the amount on which Social Insurance is applicable. The contributory amount can be different from salary because the contributory amount is set at the start of the year whereas the salary can change during any month throughout the year.
You run Report 168 from the Submit Request window.
To run Report 168
In the Name field, select Kuwait Report 168 to open the Parameters window.
Select the legal employer within the business group for which you want to run the report.
Select the contribution month for social insurance.
Enter the reporting year of the contribution month for social insurance.
Click the Submit button.
You can generate the following statutory social insurance reports from the Submit Request window for submission to PIFSS:
| Report | Explanation | Report Name in Submit Request Window |
| Report 55 | Detailed annual statement of the insured employees and their salaries in the private and oil sectors | Kuwait Report 55 |
| Report 56 | Notice of commencement or termination of subscription of an employee for complementary or supplementary insurance | Kuwait Report 56 |
| Report 103 | Notice of commencement or termination of service of an insured employee | Kuwait Report 103 |
To run these reports
Select the report that you want to generate in the Name field.
Select the legal employer within the business group for which you want to run the report.
Select the month and the year for which you want to generate the report. For report 55, the month is not required.
For report 56 or 103, enter the ID of the employee.
Click Submit to generate the report.