Compensation and Benefits Management

General Compensation Structures

Predefined Elements

The following table shows the predefined elements for payroll runs.

Predefined Elements
Element Name	Description
GOSI	This is a recurring element that is attached to each assignment and initiates GOSI processing. It has a formula attached to it, which returns the calculated values to the indirect elements.
Employer GOSI Hazards	This is a non-recurring element that contains the value of the employer's liability for GOSI Hazards.
Employer GOSI Annuities	This is a non-recurring element that contains the value of the employer's liability for GOSI Annuities.
Employer GOSI Subsidy	This is a non-recurring element that contains the value of the additional employer's liability for GOSI Annuities.
Employee GOSI Annuties	This is a non-recurring element that contains the value of the employee's liability for GOSI Annuities.
GOSI Reference Salary	This is a non-recurring element that contains the value of the employee's reference salary for GOSI deductions.
Employee GOSI Arrears	This is a non-recurring element that contains the value of the employee's outstanding GOSI liability.
Employee GOSI Arrears Payment	This is a non-recurring element and contains the value of the employee's payment to reduce the GOSI arrears.
GOSI Reference Salary Adjustment	This is a non-recurring element and contains the value of the salary adjustment for GOSI.
Setup GOSI Reference Salary	Use this non-recurring element if you want to specify a pay value as the base for calculating GOSI deductions throughout the year. Otherwise the payroll run calculates GOSI deductions using the formula attached to the GRE.
Group Decision Information	Use it to capture the Group Decision number.
PPA	Non-recurring indirect element triggered by GOSI/PPA element depending on the organization classification set at the organization level. This element triggers the PPA related calculations by calling the SA_PPA_CALCULATION formula.
Setup PPA Reference Salary	Non-recurring direct element that contains the employee's contributory salary for the current year.
PPA Reference Salary Adjustment	Non-recurring direct element to modify the reference salary anytime in between the year, since you can set up the Setup PPA Reference Salary element only once a year, during the start of the year.
PPA Reference Salary	Non-recurring indirect element that displays the value for the reference salary (contributory salary).
Employee PPA Annuities	Non-recurring indirect element that displays the value for the employee PPA contributions.
Employer PPA Annuities	Non-recurring indirect element that displays the value for the employer PPA contributions.
Employee PPA Arrears	Non-recurring indirect element that stores the excess amount in case the PPA annuities value for a particular payroll period is more than the net payment during the payroll run.
Employee PPA Arrears Payment	Non-recurring direct element that you must attach to pay the arrears.
Employer PPA Hazards	Non-recurring indirect element that displays the value for the employer occupational hazards contributions.

The following table shows the two predefined element sets for earnings and deductions. You can use these element sets to view the information in SOE report.

Predefined Element Sets
Element Set Name	Description
SA_SOE_EARNINGS_ELEMENTS	Use this element set to hold the earnings elements.
SA_SOE_DEDUCTIONS_ELEMENTS	Use this element set to hold the deductions elements.

Survey of the Classifications

The survey of the classifications identifies:

Primary Classifications

Primary element classifications are supplied as startup data, and you cannot delete or update them as they are designed to meet legislative requirements.

List of Primary Classification:
Classification	Meaning
Information	Information elements can be used to represent information items that are not used in payroll processing. They can also be set up to hold information for use in other elements, and to trigger the processing of other elements, for example, loan details.
Earnings	Earnings elements represent most payments made to an employee. These payments are usually subject to deductions of tax and Social Insurance, and are normally processed in the regular payroll run each period.
Absence	Absence elements represent the absence.
Supplemental Earnings	Supplemental Earnings element includes special earnings paid in addition to the earnings for time worked.
Taxable Benefits	Taxable Benefits elements represent the taxable benefits.
Pre-Statutory Deductions	Pre-Statutory Deductions elements represent the deductions that are applicable before the statutory deductions.
Statutory Deductions	Statutory Deductions elements are for mandatory GOSI deductions.
Direct Payment	Direct Payment elements are for expenses or loans made through the payroll that are not subject to tax. They are included in gross or net pay balances.
Employer Charges	Employer Charges element represent payments such as contribution made to any statutory bodies by the employer for the employee.
Involuntary Deductions	Involuntary Deductions elements are compulsory deductions.
Voluntary Deductions	Voluntary Deductions are those deductions that the employee authorizes the employer to make on their behalf.

Primary Classification Processing Priorities and Cost Types

The following table shows the default processing priority and costing details for the primary classifications supplied.

Primary Classification	Priority Range	Default Priority	Cost Type
Information	0-12000	500	Debit
Earnings	1001-2000	1500	Debit
Absence	2001-3000	2500	Debit
Supplemental Earnings	3001-4000	3500	Debit
Taxable Benefits	4001-5000	4500	Debit
Pre-Statutory Deductions	5001-6000	5500	Credit
Statutory Deductions	6001-7000	6500	Credit
Direct Payment	7001-8000	7500	Debit
Employer Charges	8001-9000	8500	Debit
Involuntary Deductions	9001-10000	9500	Credit
Voluntary Deductions	10001-11000	10500	Credit

Predefined Secondary Element Classifications

This table shows the predefined secondary classifications supplied. You cannot update or delete these predefined classifications.

An element is automatically given any default secondary classifications defined for its primary classification.

Element Classifications:
Primary Classification	Secondary Classification	Default
Information	Subject to GOSI: Information	N/A
Earnings	Subject to GOSI: Earnings	N/A
Absence	Subject to GOSI: Absence	N/A
Supplemental Earnings	Subject to GOSI: Supplemental Earnings	N/A
Taxable Benefits	Subject to GOSI: Taxable Benefits	N/A
Pre-Statutory Deductions	Subject to GOSI: Pre-Statutory Deductions	N/A

Other Payroll Earnings and Deductions

Payroll Balances

Balances show the positive or negative accumulation of particular values over periods of time. They are fed either by the direct run results (that is, Pay Values) of elements processed in the payroll run, or by input values. For example, in North American installations, the input value Hours of the element Time Entry Wages feeds the balance Regular Hours Worked.

Balance Dimensions and Levels

Balances exist for various time dimensions, such as current run, period to date, month, quarter to date, and year to date.

Balances also exist at different levels, such as assignment level or person level. Balances for individual employee assignments are at the assignment level (in North America, they can be at the assignment level within a GRE). If your enterprise permits employees to hold more than one assignment at the same time, you can hold balances at the person level. For example, a person level Gross Earnings balance is the sum of an employee's assignment level Gross Earnings balances.

Choosing Elements To Feed a Balance

You can select elements to feed a balance in three ways:

Select a primary classification. The run results of all elements in the classification feed the balance. However, you must have an input value of Pay Value if you want to create a feed between an element and a balance.
Select a secondary classification. You choose which elements from a primary classification (such as Earnings) are to feed the balance by giving these elements a secondary classification. Again it is the run results of the elements that feed the balance.

Note: Secondary classifications are not used in the North American versions of Oracle Payroll at this time.

Select an individual element. You can select either the run result or an input value to feed the balance. The input value must have the same unit of measure (such as hours or number) as the balance.

You can choose any number of classifications or any number of elements to feed a balance. However you cannot use a mixture of classifications and individual elements to feed a balance. When you select an element or classification as a balance feed, you specify whether the run results (or input values) should add to or subtract from the balance.

Startup and User Defined Balances

The balances and balance feeds for the elements supplied with Oracle Payroll are present in the system when you receive it. For North American users, when you initiate earnings types, deductions and other items that process in the payroll run, the system generates the appropriate balances and balance feeds together with the necessary elements.

You can define any additional balances your enterprise requires. For example, you may require a Pensionable Earnings balance for a pension plan your enterprise offers employees.

Primary Balances

Important: You cannot have two or more elements with the same primary balance. This setup will cause incorrect elements to show up on reports or Statement of Earnings when the process uses balance reporting architecture.

You define primary balance using the following navigation:

Balance window (Total Compensation > Basic > Balance):

You define primary balance by selecting an element and an input value in the Primary Balance region in the Balance window. This type of balance is fed by a single element and can only be inserted if no balance feeds exist for the balance, with the exception of Balance Initialization feeds. When you create a primary balance, the associated feed is created automatically. No other feeds can be created for the balance. Note that if the Primary Balance region is disabled, then the primary balance functionality is not enabled for that localization.
Earnings or Deductions window:

When you create a balance, the balance gets created with name same as that of the element and the element input "Pay Value" gets added as a feed to this balance. This balance is considered as a Primary Balance for this element and can be seen from the Primary Balance field in the Element Description, Further Information window. Changing this Primary Balance in the Further Element Information will result in incorrect values to be reported. For example, Statement of Earnings (SOE) is designed to display the values based on the Primary Balance associated with the elements that are processed.

Payroll Balance Dimensions

Oracle HRMS provides the following predefined balance dimensions.

Standard Dimensions

The following table provides the balance dimensions that you can use to sum values for single assignments:

Balance Dimensions
Database Item Suffix	Description
_ASG_MONTH_NO_LEAVERS	Since the start of the month to date for the employees who are neither joiners nor leavers.
_ASG_MONTH_NEW_JOINERS	Since the start of the month to date for the employees who are new joiners.
_ASG_MONTH_LEAVERS	Since the start of the month to date for the employees who are leavers.
_ASG_TU_MONTH_NO_LEAVERS	Since the start of the month to date for the employees who are neither joiners nor leavers within the tax unit (Legal Employer).
_ASG_TU_MONTH_NEW_JOINERS	Since the start of the month to date for the new joiners within the tax unit (Legal Employer).
_ASG_TU_MONTH_LEAVERS	Since the start of the month to date, who are leavers within the tax unit (Legal Employer).
_ASG_TU_ITD	Since the start of the month to date for the assignment within the tax unit (Legal Employer).
_ASG_TU_PTD	Since the start of the processing period to date for the assignment within the tax unit (Legal Employer).
_ASG_TU_MONTH	Since the start of the calendar month to date for the assignment within the tax unit (Legal Employer).
_ASG_TU_QTD	Since the start of the calendar quarter to date for the assignment within the tax unit (Legal Employer).
_ASG_TU_YTD	Since the start of the calendar year to date for the assignment within the tax unit (Legal Employer).
_ASG_TU_FQTD	Since the start of the fiscal quarter to date for the assignment within the tax unit (Legal Employer).
_ASG_TU_FYTD	Since the start of the fiscal year to date for the assignment within the tax unit (Legal Employer).
_PER_TU_ITD	Since the start of the month to date for a person within the tax unit (Legal Employer).
_PER_TU_PTD	Since the start of the processing period to date for a person within the tax unit (Legal Employer).
_PER_TU_MONTH	Since the start of the month to date for the person within the tax unit (Legal Employer).
_PER_TU_QTD	Since the start of the calendar quarter to date for the person within the tax unit (Legal Employer).
_PER_TU_YTD	Since the start of the calendar year to date for the person within the tax unit (Legal Employer).
_PER_TU_FQTD	Since the start of the fiscal quarter to date for the person within the tax unit (Legal Employer).
_PER_TU_FYTD	Since the start of the fiscal year to date for the person within the tax unit (Legal Employer).
_PER_TU_TQTD	Since the start of the statutory quarter to date for the person within the tax unit (Legal Employer).
_PER_TU_TYTD	Since the start of the statutory year to date within the tax unit (Legal Employer).
_ASG_TU_TQTD	Since the start of the statutory quarter to date for the assignment within the tax unit (Legal Employer).
_ASG_TU_TYTD	Since the start of the statutory year to date for the assignment within the tax unit (Legal Employer).
_ASG_RUN	during one payroll run
_ASG_ITD	Since the start of the assignment Inception to date.
_ASG_PTD	Since the start of the assignment Processing Period To Date
_ASG_MONTH	Since the start of the assignment calendar month to date.
_ASG_QTD	Since the start of the assignment calendar quarter to date.
_ASG_YTD	Since the start of the assignment calendar year to date.
_ASG_TQTD	Since the start of the assignment tax quarter to date.
_ASG_TYTD	Since the start of the assignment tax year to date.
_ASG_FQTD	Since the start of the assignment fiscal quarter to date.
_ASG_FYTD	Since the start of the assignment fiscal year to date
_PER_ITD	Since the start of the person inception to date.
_PER_PTD	Since the start of the person processing period to date.
_PER_MONTH	Since the start of the person calendar month to date.
_PER_QTD	Since the start of the person calendar quarter to date.
_PER_YTD	Since the start of the person calendar year to date.
_PER_TQTD	Since the start of the person tax quarter to date.
_PER_TYTD	Since the start of the person tax year to date.
_PER_FQTD	Since the start of the person fiscal quarter to date
_PER_FYTD	Since the start of the person fiscal year to date.
_ENTRY_ITD	Since the start of the element entry inception to date
_ENTRY_PTD	Since the start of the element entry processing period to date.
_ENTRY_MONTH	Since the start of the element entry calendar month to date.
_ENTRY_QTD	Since the start of the element entry calendar quarter to date.
_ENTRY_YTD	Since the start of the element entry calendar year to date.

A special dimension which aggregates results from payroll runs that have been picked up in a particular pre-payments run.

Payments Dimensions
Database Item Suffix	Description
_PAYMENTS	For a set of payroll runs.

General Office of Social Insurance Deductions

Oracle Payroll provides the elements, balances, formulas, and other components required to process GOSI deductions. When the payroll run encounters an entry of the GOSI element, it runs the predefined formula SA_GOSI_CALCULATION. This formula processes GOSI Annuities and GOSI Hazards if you have specified these deductions for your employees (on the GOSI Details tab of the Assignment window).

If an employee has an entry of the Setup GOSI Reference Salary element, the formula uses this element's pay value as the base for calculating the GOSI deductions, subject to any adjustment entered on the GOSI Reference Salary Adjustment element.

If there is no entry of the Setup GOSI Reference Salary element, the formula uses the base value returned by the GOSI Reference formula, if you have written this formula and attached it to your GRE.

Note: This formula must return the variable, GOSI_REFERENCE.

If you do not define a GOSI Reference formula, Oracle Payroll calculates the GOSI base from the elements having the secondary classification Subject to GOSI.

If there are no elements with this secondary classification, Oracle Payroll calculates the GOSI deductions on the lower limit of the base value provided for the GOSI deductions.

GOSI Processing

GOSI payroll processing assesses the employee's total earnings. If an employee's earnings exceeds Employee GOSI Annuities, then GOSI calculations automatically process and deduct from the employee's earnings. However, if the employee's earnings are less than the Employee GOSI Annuities, then the employer pays on behalf of the employee, and this accrues as arrears for the employee.

Public Pension Agency Deductions

Oracle Payroll provides the elements, balances, formulas, and other components required to process PPA deductions. When the payroll run encounters an entry of the PPA element, it runs the predefined formula SA_PPA_CALCULATION. This formula processes PPA Annuities and PPA Hazards if you have specified these deductions for your employees (on the GOSI/PPA Details tab of the Assignment window). If an employee has an entry of the Setup PPA Reference Salary element, the formula uses this element's pay value as the base for calculating the PPA deductions, subject to any adjustment entered on the PPA Reference Salary Adjustment element.

If there is no entry of the Setup PPA Reference Salary element, then the formula uses the base value returned by the PPA Reference formula, if you have written this formula and attached it to your GRE/Legal Entity. If you do not define a PPA Reference formula, then Oracle Payroll calculates the PPA base from the elements having the secondary classification Subject to PPA. If there are no elements with this secondary classification, then Oracle Payroll calculates the PPA deductions on the lower limit of the base value provided for the PPA deductions.

PPA Processing

PPA payroll processing assesses the employee's total earnings. If an employee's earnings exceed Employee PPA Annuities, then PPA calculations automatically process and deduct from the employee's earnings. However, if the employee's earnings are less than the Employee PPA Annuities, then the employer pays on behalf of the employee, and this accrues as arrears for the employee.

Setting up GOSI Processing

Setting Up GOSI Processing

Oracle HRMS enables you to process General Office of Social Insurance (GOSI) contributions for employees using predefined GOSI elements.

Before you start to process GOSI contributions, you need to do the following:.

To set up GOSI processing

Define the GOSI address as a location within the application. See: Setting Up Locations , Oracle Enterprise and Workforce Management Guide
Create an external organization for the General Office of Social Insurance (GOSI). See:Business Groups: Entering Saudi GOSI Office
Enter GOSI details of the legal entities in your enterprise. See GREs/Legal Entities: Entering Saudi GOSI Details
Link the predefined elements GOSI, Setup GOSI Reference Salary, and GOSI Reference Salary Adjustment. You can also link other user defined elements.

See: Predefined Elements

See: Defining Element Links, Oracle Compensation and Benefits Management Guide
Link the formula SA_GOSI_CALCULATION to GOSI element in the Formula Result Rules window.

See: Defining Formula Processing and Result Rules, Oracle FastFormula User Guide
Optionally write a formula to return a base value for the calculation of GOSI deductions. This formula must return the variable GOSI_REFERENCE. You can override this formula for some or all employees by entering a pay value for the Setup GOSI Reference Salary element. For more information on writing formulas, See: Writing or Editing a Formula, Oracle FastFormula User Guide
If you have created your own formula with a return variable GOSI_REFERENCE, attach your formula at the GRE level. See: GREs/Legal Entities: Entering GOSI Reference Formula
Optionally use the Subject to GOSI secondary classification to classify the elements that form the base for GOSI deductions. Oracle Payroll uses these elements to calculate the base once each year in January if you have not defined a GOSI Reference Formula, nor entered a pay value in the Setup GOSI Reference Salary element for an employee.

Enrolling an Employee for GOSI Deductions

You can enroll an employee assignment to General Office of Social Insurance (GOSI) deductions using the Element Entries window.

To enroll an employee assignment for GOSI deductions

Set your effective date to the date on which you want the GOSI deductions to come into effect.

Note: For New Hires, this should normally be the hire date. Deductions begin in the payroll period. This payroll run retrospectively calculates employee and employer deductions for GOSI.
Choose New Record to enter a new element entry.
Select the element GOSI to initiate the GOSI processing. You can enter costing information and a reason for entering this element for the assignment. The element has no input values.
Choose New Record and select the element Setup GOSI Reference Salary if you want to specify a base value for calculating GOSI deductions. If you do not enter this element for the employee, the payroll run calculates the GOSI base using the GOSI Reference formula attached to the GRE.
Enter costing information and a reason, if required. See:Data Costed at the Element Entry Level., Oracle Compensation and Benefits Management Guide
To enter a pay value for the element Setup GOSI Reference Salary, choose the Entry Values button to open the Entry Values window. In the pay value field, enter the base value for the GOSI calculations to use in the current year.
In the Element Entries window, choose New Record and select the element GOSI Reference Salary Adjustment if you want to change the base value for GOSI calculations.
Choose the Entry Values button to open the Entry Values window.
Enter an amount in the Pay Value field, for the element GOSI Reference Salary Adjustment. You can use this amount to adjust the base value for GOSI deductions. This value can be a positive or negative. For example, suppose you have set the pay value for the element Setup GOSI Reference Salary as 1000 (thousand dinar). If you want to decrease or increase the base for the GOSI deductions by 100 (hundred dinar) in the current pay period only, enter +100 or -100 in the pay value field for the element GOSI Reference Salary Adjustment.
Save the Element Entry details.

Setting up PPA Processing

Oracle HRMS enables you to process Public Pension Agency (PPA) contributions for employees using the predefined PPA elements.

To set up PPA processing

Create the PPA organization. See: Creating Public Pension Agency Organization
Define PPA office. See: Business Groups: Defining PPA Office
Enter PPA office details of the legal entities in your enterprise. See GREs/Legal Entities: Entering PPA Office Details.
Link the predefined elements PPA, Setup PPA Reference Salary, and PPA Reference Salary Adjustment. You can also link other user defined elements. See: Predefined Elements and Defining Element Links, Oracle Compensation and Benefits Management Guide
Link the formula SA_PPA_CALCULATION to PPA element in the Formula Result Rules window. See: Defining Formula Processing and Result Rules, Oracle FastFormula User Guide
Optionally write a formula to return a base value for the calculation of PPA deductions. This formula must return the variable PPA_REFERENCE. You can override this formula for some or all employees by entering a pay value for the Setup PPA Reference Salary element. For more information on writing formulas, See: Writing or Editing a Formula, Oracle FastFormula User Guide
If you have created your own formula with a return variable PPA_REFERENCE, then attach your formula at the GRE/Legal Entity level. See: GREs/Legal Entity: Entering PPA Office Details
Optionally use the Subject to PPA secondary classification to classify the elements that form the base for PPA deductions. Oracle Payroll uses these elements to calculate the base once each year in January if you have not defined a PPA reference formula, nor entered a pay value in the Setup PPA Reference Salary element for an employee.

Absence Management

Absence Categories for Saudi Government Sector

Oracle HRMS provides a convenient way to maintain information about the various absence types your enterprise recognizes. To facilitate reporting and analysis of employee absences, you can distinguish between absence types and absence categories. An absence category is a group of related absence types. The following list contains the predefined absence categories available for Saudi government sector absences. You can extend the following list of predefined categories and define your own absence types, as required:

Saudi Accompaniment Leave
Saudi Pilgrimage Leave
Saudi Sick Leave
Saudi Edda Leave
Saudi Education Leave
Saudi Extended Maternity Leave
Saudi Literature Activity Leave
Saudi Marriage Leave
Saudi Maternity Leave
Saudi Cultural Activity Leave
Saudi Relief Work Leave
Saudi Death Leave
Saudi Emergency Leave
Saudi Exams Leave
Saudi Social Activity Leave
Saudi Unpaid Leave
Saudi Annual Leave
Saudi Dialysis Leave
Saudi Sports Activity Leave
Saudi Serious Sick Leave
Saudi Compensatory Leave

Setting up Public Sector Absences

Oracle HRMS enables you to record the absence information for public sector employees to receive the applicable absence benefits.

To set up public sector absences

Create information element for each absence category; for example, Accompaniment Leave element for Saudi Accompaniment Leave absence category.
Create element links for the elements that you create.
Create absence type and select applicable predefined Saudi government sector absence category from the list. While defining the absence type, specify the element in the Associated Element field to link it with the absence.
For absences with accruals such as annual leave, create an accrual plan and specify the accrual band for the absence
Create a formula that the application triggers for your absence to do the payroll calculations, for example, SA_ABSENCE_FORMULA. The application uses the formula that you create to perform all the payroll calculations and return the results to applicable absence category element. You can use the sample formula text to create your formula:
```
/* ------------------------------------------------------------------------
SA_ANNUAL_ABSENCE_CALCULATION
   ---------------------------------------------------------------------*/
INPUTS ARE
Start_Date (date),
End_Date (date)
Max_Carryover = 36
/* Calculations to be defined here */
RETURN
Start_Date,
End_Date,
Max_Carryover
```
Create formula results for your absence formula and pass on the results to the user defined absence element and other payroll elements for pay calculations.
Create a new element with classification as Absence for all the absences that would hold the results returned from the formula, for example, Marriage Leave Formula element. For employees with age 50 years and above, create a separate element using the same steps as discussed in this topic and define the accrual plan for it with carryover days as 120.
Create required balances and attach the balance feeds to the Absence elements and other elements as required.
Record the absence information for an employee using the Absence window. See Entering Absences, Oracle HRMS Compensation and Benefits Management Guide.
Enter additional information for each of these absences using the Further Information field:
- Enter the absence location for the following absences
  - Cultural activity leave
  - Sports activity leave
  - Social activity leave
- Enter the Edda leave reason for Edda leave.
If you want to skip the validation for number of days inside and outside of the Kingdom of Saudi Arabia, then select Saudi Days Exception as the absence reason to override the days validation for the following absence categories:
- Death Leave
- Marriage Leave
- Dialysis Leave
- Emergency Leave
- Edda Leave
- Extended Maternity Leave
- Maternity/Paternity Leave
- Serious Sickness Leave
- Sick Leave
- Relief Work Leave
- Pilgrimage Leave
- Literature Activity Leave
- Social Activity Leave
- Sports Activity Leave
- Cultural Activity Leave