Using Oracle HRMS, you can set up payrolls to pay all your employees accurately and at the correct time.
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:
Consolidation sets, Oracle HRMS Payroll Processing Management Guide
Assignment sets, Oracle HRMS Payroll Processing Management Guide
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
You can use Oracle Payroll to define a payroll, or range or payrolls that best suit your organizational needs.
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.
Use the Payroll window to define a payroll, including its calendar and valid payment methods.
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 payroll's name and select its period type from the list.
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.
When you enter the First Period End Date, make sure that the corresponding start date of the first period is on or after the start date of the payroll.
Note: The first period end date must be equal to the last day of the first period in the tax year in which you are planning to start running payrolls, or any earlier date in order for tax to be calculated correctly.
Enter any date offsets you require for the payroll. Offsets are calculated from the last day of the payroll period. As South African legislation requires all offset dates to be within the payroll period, your choice is between a negative integer, such as -2, and zero, which is the default. You can specify offsets for:
The action date for ACB payments. This date is displayed on the ACB header
The month end date. This affects weekly payroll frequencies where a month end occurs after 4 or 5 periods have been processed. For fortnightly payrolls, a month end occurs after 2 or 3 periods have been processed. The month end date determines when Month to Date balances must be reset.
Note: System-generated dates do not differentiate between working and non-working days. Therefore, if a date falls on a non-working day, you must make adjustments in the Period Dates window.
Select a default payment method for employees who have no valid personal payment method.
Note: You cannot select a method that uses 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.
In the Costing region, you can enter information about the ledger 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 Configuring, Reporting, and System Administration Guide
Check the Arrears Payroll check box if you want to use Advance Pay for an arrears payroll. You do not need to check the box just to run an arrears payroll.
See: Advance Pay Process, Oracle HRMS Payroll Processing Management Guide
Check the Negative Payment Allowed check box if you want the pre-payments process to include negative payments. If you leave the box unchecked, the pre-payments process ignores negative payments.
If you are an Oracle Payroll user, click in the Statutory Information field to display the segments of the ZA Statutory Information flexfield and enter the ACB details for the payroll.
Warning: If ACB information is not required for this payroll, enter any value into the ACB fields, for example, enter 1, but do not leave the ACB fields blank.
Note: The statutory information field is not visible if your HR: User Type option is set to HR User only.
Select the Cumulative taxation method. This method uses the number of pay periods in the year to arrive at the annual earnings and the annual liability for taxation.
Enter the ACB user code for the payroll. Multiple payrolls can have the same user code.
If the business group's ACB user type is Single, this user code must be the same as the ACB Installation ID Code.
To enter a business group's ACB user type, see: Business Groups: Entering ACB Installation Information.
Select the ACB service type. This is the number of days that ACB must receive the file prior to payment.
Enter the user abbreviated name. This is determined by ACB.
Enter the registered aggregate limit if you want Oracle Payroll to issue a warning message if the limit is exceeded. This limit is the total of all ACB payments that can be made for the selected payroll.
Enter the item limit if you want Oracle Payroll to issue a warning message if the limit is exceeded. This limit is the total ACB payment that can be made for a single assignment.
Enter the maximum number of advance holiday periods that can be paid, as determined by your business rules.
Enter the default pension basis for the enterprise.
Save your work.
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 status Open in any period to Closed to prevent further element entries. You can also reopen the period if necessary.
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, Oracle HRMS Enterprise and Workforce Management Guide