The following table lists the predefined elements that are provided with Oracle HRMS for Hong Kong.
| Element Name | Description |
|---|---|
| MPF Information | Contains MPF details |
| MPF Withheld | MPF Employee details |
| MPF Liability | MPF Employer details |
| Voluntary MPF Withheld | Voluntary MPF Employee details |
| Voluntary MPF Liability | Voluntary MPF Employer details |
| Retro MPF Withheld | Retro (Backdated) MPF Employee details |
| Retro MPF Liability | Retro (Backdated) MPF Employer details |
| Retro MPF Liability for First Period | Retro MPF Liability amount for first pay period |
| Retro MPF Liability for Second Period | Retro MPF Liability amount for second pay period |
| Voluntary MPF Lump Sums | MPF for Employee and Employer Lump Sum amounts |
| Quarters Balance Adjustor | Value amount for Company Quarters |
| Company Quarters | Company Quarters Information |
| Initial Values Quarters | Used for Balance Initialization |
| Initial Values MPF | Used for Balance Initialization |
| Initial Values MPF RI | Used for Balance Initialization |
| Initial Values IR56 Boxes | Used for Balance Initialization |
| Initial Values Classifications | Used for Balance Initialization |
| Initial Values Magtape | Used for Balance Initialization |
| Specified Date | Used to specify the date used for computing average rate. |
| MWO Eligibility Information | Used to determine if the employee is eligible for minimum wage calculations |
| MWO Additional Remuneration | Used to adjust the wages of employee who does not meet the minimum wage criteria |
The survey of classifications identifies:
The processing priority range, default priority, and cost type for each classification
A list of the predefined secondary classifications within each primary classification
| Classification | Meaning |
| Earnings | Salary, Basic Wages, Bonus, Commission Payments |
| Company Quarters | Company Quarters Allowance Elements. Company Quarters Only. Further Element Information for context HK_COMPANY QUARTERS to enter Address Id (Value Set of employee addresses) |
| Provident Fund Information | Information Elements to initiate Provident Fund Deductions and Employer Liabilities. Further Element Entry Information for context HK_PROVIDENT FUND INFORMATION to enter Scheme Id (Value Set of Org Info Types where ORG_INFORMATION_TYPE = MPF_SCHEMES) |
| Information | Balance Adjustment Elements and Information Elements as required |
| Direct Payment | Expense Repayment, Educational Assistance Payments |
| Mandatory Deductions | Employee Contributions to Mandatory Provident Fund (MPF EE) |
| Involuntary Deductions | None specified at present |
| Voluntary Deductions | Voluntary MPF EE and User Defined Deductions (for example, Loss of Pass Card) |
| Employer Liabilities | MPF ER |
| Balance Initialization | Global classification for Initial Balance Load Elements |
| Primary Element Classifications |
The following table shows processing priority and costing details for the primary classifications supplied.
| Primary Classification | Priority Range | Default Priority | Cost Type |
|---|---|---|---|
| Information | 0 - 500 | 250 | Debit |
| Direct Payment | 1001 - 1500 | 1250 | Debit |
| Earnings | 1501 - 2000 | 1750 | Debit |
| Company Quarters | 3001 - 3500 | 3201 | Debit |
| Provident Fund Information | 4501 - 4600 | 4551 | Debit |
| Mandatory Deductions | 4601 - 5000 | 4801 | Credit |
| Involuntary Deductions | 5001 - 5500 | 5250 | Credit |
| Voluntary Deductions | 5501 - 6000 | 5750 | Credit |
| Employer Liabilities | 6001 - 7000 | 6500 | Debit |
| Primary 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.
| Primary Classification | Secondary Classifications | Default |
|---|---|---|
| Earnings | Taxable Earnings | Yes |
| Company Quarters | (None) | N/A |
| Provident Fund Information | (None) | N/A |
| Information | (None) | N/A |
| Direct Payment | (None) | N/A |
| Mandatory Deductions | (None) | N/A |
| Involuntary Deductions | Tax Deductible Involuntary Deductions | Yes |
| Voluntary Deductions | Taxable Deductions | Yes |
| Employer Liabilities | (None) | N/A |
| Earnings | MWO Wages E | N/A |
| Earnings | MWO Wages Q | N/A |
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.
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.
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.
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.
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.
The following dimensions are predefined. You can create additional dimensions at the assignment level, if you require them.
You are likely to use these dimensions to sum values for single assignments for your own balances.
| _ASG_RUN | during one payroll run |
| _ASG_CALENDAR_QTD | since start of calendar year, reset every three months |
| _ASG_CALENDAR_YTD | since start of calendar year, reset every year |
| ASG_QTD | since start of tax year, reset every three months |
| _ASG_YTD | since the start of payroll processing year |
| _ASG_LTD | since the start of assignment |
These statutory dimensions are normally used for summing balance feeds for single assignments to predefined balances.
You can view assignment-level balances for a specific legal entity (indicated by LE in the balance dimension name) and for mandatory provident fund (indicated by MPF in the balance dimension name).
| _ASG_PTD |
| _ASG_MONTH |
| _ASG_QTD |
| _ASG_YTD |
| _ASG_FQTD |
| _ASG_FYTD |
| _ASG_CAL_YTD |
| _ASG_LTD |
| _ASG_LE_RUN |
| _ASG_PTD |
| _ASG_LE_MONTH |
| _ASG_LE_YTD |
| _ASG_LE_FQTD |
| _ASG_LE_FYTD |
| _ASG_LE_CAL_YTD |
| _ASG_LE_LTD |
| _ASG_SRCE_PTD |
| _ASG_SRCE_MONTH |
| _ASG_SRCE_QTD |
| _ASG_SRCE_YTD |
| _ASG_MPF_PTD |
| _ASG_MPF_MONTH |
| _ASG_MPF_QTD |
| _ASG_MPF_YTD |
| _ASG_SRCE_MPF_PTD |
| _ASG_SRCE_MPF_MONTH |
| _ASG_SRCE_MPF_QTD |
| _ASG_SRCE_MPF_YTD |
| _ASG_12MTHS_PREV |
These statutory dimensions are usually associated with predefined balances for summing balance feeds for an employee's multiple assignments when those assignments are in the same tax scheme, that is, report under the same tax reference.
| _PER_RUN | during one payroll run |
| _PER_PTD | since start of period to date |
| _PER_MONTH | for a month |
| _PER_QTD | since start of quarter to date |
| _PER_YTD | since start of year to date |
| _PER_FQTD | since start of fiscal quarter to date |
| _PER_FYTD | since start of fiscal year to date |
| _PER_CAL_YTD | for the calendar year |
| _PER_LTD | during lifetime to date |
This is a special dimension which aggregates results from payroll runs that have been picked up in a particular pre-payments run.
| _PAYMENTS | for a set of payroll runs |
Use the Balance Feeds window to select balances to be fed by the input values of an element. Balances are either fed by whole classifications of elements or by individual elements, but not by both. Therefore, in this window you cannot select balances that are fed by classifications. You can query a balance in the Balance window and choose the Classifications button to view the list of classifications that feed it.
You can use an element to feed as many balances as you require.
To create balance feeds for one element
Set your effective date to when you want the balance feed to start.
Enter or query the element in the Element window and choose the Balance Feeds button.
In the Balance Feeds window, select the input value that you want to feed the balance with.
The list displays all the input values defined for the element. These input values may have different units of measure. When you select an input value its unit of measure displays in the Units field. To feed a balance with the element's direct run result, select Pay Value.
Select the balance you want the input value to feed.
The list restricts your choice to balances having the same unit of measure as the input value you selected.
Select Add or Subtract for the balance feed.
Note: Secondary classifications and balance feed controls currently do not apply to the US version of Oracle Payroll.
In the Balance Feed Control window, you can classify an element using secondary classifications. These determine the balances that the element feeds. You can query a balance in the Balance window and choose the Classifications button to view the list of classifications that feed it.
To select or remove secondary element classifications
Set your effective date to when you want the element to begin feeding the balances that the secondary classifications feed.
Enter or query the element in the Element window and choose the Balance Feed Control button.
In the Balance Feed Control window, delete any default secondary classifications you do not require for the element.
When this window opens, it displays any default secondary classifications for the element's primary classification. Unless they are predefined, you can delete any of these classifications, and you can change their effective start dates.
Select any non-default secondary classifications you require.
Defining a balance includes defining its feeds and dimensions. When selecting feeds for the balance you have to choose between specifying element input values directly, and selecting element classifications to determine the feeds. You cannot choose both methods together.
You can group similar balances - such as all earnings balances - in a single category for quicker and easier processing. Each localization has a defined set of categories. If there are no categories in the list of values, this means your legislation is not yet using the category functionality.
Balances often share a common relevancy to certain assignments. In some localizations, you can define base balances to imply a relationship between the balances that can be relied upon when processing and reporting. For example, "Loan Repayment" could be the base balance for "Loan Repayment Arrears".
You define balances in the Balance window.
To define a user balance
Do one of the following:
Enter a unique name and a reporting name for the new balance. If you do not provide a reporting name, the first seven characters of the balance name appear on reports.
Query any user balances you want to change.
Optionally, select a balance category in the Category field.
Australian Users: Attach all user-defined balances to the relevant balance category and to the _ASG_RUN and _ASG_YTD dimensions to populate the run balances. You must attach all user-defined allowance balances required to be reported individually on the Payment Summary to the Balance Category of Allowance and to the _ASG_LE_RUN and _ASG_LE_YTD dimensions.
New Zealand Users: You must assign a balance category for each element that you define.
Optionally, select a Base Balance.
Enter the unit of measure for the balance. The choices are days, hours (listed in different formats), integer, money and number. If you select money as the unit you must also select a currency.
Note: Do not select the Use for Remuneration check box. This displays the balance that has been predefined as the Remuneration balance. Only one balance within a legislation can have this value.
To define a primary balance - one fed by a single element - select an element and input value in the Primary Balance region (if this region is available for your localization).
Go to the Balance Feeds window or the Balance Classifications window.
Set your effective date to the start date for the balance feeds.
Select one or more elements to feed the balance. Only those elements whose input values have the same unit of measure as the balance are listed.
When you select an element, its classification is displayed. You can select elements with different classifications.
Select the input value that is to feed the balance.
For most payroll balances select Pay Value so that the element's run result feeds the balance.
Select Add or Subtract for the balance feed.
Select one or more element classifications and select Add or Subtract for each. The run results of all elements in the classification will feed the balance.
The list includes all the primary and secondary element classifications that are valid for this balance. If you select a secondary classification, you cannot also select its parent primary classification.
Note: Secondary classifications are not used in the North American or Singapore versions of Oracle Payroll at this time.
Choose the Dimensions button.
Select the dimensions you require.
New Zealand Users: For each new balance, you must attach the balance dimension _ASG_RUN for it to generate run balances.
Australian Users: Select the _ASG_RUN and _ASG_YTD dimensions for all user-defined balances. You must attach the _ASG_LE_YTD and _ASG_LE_RUN dimensions to the allowance balances required in the Payment Summary reports.
You can remove any dimension previously selected for a user-defined balance. You can also add dimensions to the startup balances included with your system, and later remove these additional dimensions. However, you cannot remove the dimensions that were predefined for the startup balances.
Note: To hold balances for a fiscal year that is different from the calendar year, you must supply the fiscal year start date for your Business Group.
Optionally, select the Grossup Balance check box for one of the dimensions, to make the balance eligible for grossup.
UK users: If you want to make the balance eligible for grossup, you must select this check box for the _ASG_RUN dimension.
Choose the Initial Feed button.
In the Initial Balance Feed window you can see details of the element and input value used for the Initial Balance feed. This feed is defined by implementation consultants prior to performing an initial balance upload at implementation time.
Choose the Attributes button.
Select an attribute definition and a dimension.
Balance attributes identify which balances can be used in which reports. Attributes can be predefined by localizations, created as a result of predefined defaults, or you can enter them in this window.
Note: For UK SOE Balances, ensure you attach the attribute to the Balances1 segment in the Business Group Information. Attach the attribute to each balance you want to display on the Online SOE. For every balance with an attached attribute, you must add individual balance to the SOE Details Information (in the Business Group Information).
The balances you attach to the SOE Details Information are defined at business group level, hence even if you change the user category profile it will not have any result on the data defined in the SOE Details Information.
Additional Information: Saudi Users: Oracle Payroll provides Saudi SOE Balance Attributes to view the SOE report. You can use the predefined balance attributes or create your own balance attributes.
There are a number of reasons for adjusting balances. You may want to correct errors arising from an incorrect initial balance load, or record amounts that were not processed through payroll. You may also want to adjust balances while changing the scheme under which you originally made employee deductions and employer liabilities.
In Oracle HRMS, you do not adjust balance figures directly, rather you create an adjusting entry to either add to or subtract from the total of the balance. Balance adjustments could be considered as run results of elements rather than a correction of a balance value.
Mandatory Provident Fund (MPF) balances relate to a particular scheme, and therefore when adjustments are made to balances such as MPF Withheld, you must identify the appropriate scheme to which the adjustments should be applied. You can identify the appropriate scheme by entering the Oracle HRMS identification number for the scheme as the Source input value when entering the adjustment. You can obtain the Oracle HRMS identification number for the scheme from the element entry of the MPF Information element for the assignment. The scheme number is included in parentheses after the scheme name in the Further Element Entry Information window.
To adjust an MPF balance without affecting any of the other classification balances or indeed any balances that your normal MPF element feeds, you must first create an MPF Balance Adjustment element.
See: Setting Up MPF Balance Adjustments
You enroll employee assignments onto a Mandatory Provident Fund (MPF) scheme using BEE or the Element Entries window to enter the MPF information element. This calculates all MPF amounts. It automatically generates pay results for employee deductions and employer liabilities, both for mandatory and voluntary contributions.
The MPF processing in Oracle Payroll does not assess an employee's total earnings; rather, it separately assesses the earnings of each enrolled assignment. If an employee has multiple assignments within your enterprise, each assignment is independently processed by payroll, and the earnings of each assignment are individually assessed for MPF purposes. This may lead to issues with employee deductions, if the earnings fall below the lower earnings threshold for employee deductions. Where this is an issue, it is recommended that you pay earnings through the primary assignment and enroll the employee in MPF for the primary assignment only.
The Government of the Hong Kong Special Administrative Region – Labour Department has introduced a new legislation regarding the Minimum Wage Ordinance (“MWO”) to provide a statutory minimum wage to all relevant employees based on the prescribed minimum hourly wage rate and the hours that they have worked in the relevant wage period effective from 01 May 2011.
Oracle HRMS for Hong Kong enables users to calculate the applicable minimum wages and pay the additional remuneration if the employees do not meet the minimum wage requirement.
Oracle HRMS provides balances, elements, and globals, formulas that enables users to calculate the applicable minimum wages.
Oracle HRMS enables you to process Mandatory Provident Fund (MPF) contributions for employees using the predefined MPF elements.
See: Mandatory Provident Fund Scheme Enrolment
Before starting MPF processing you need to complete several tasks.
To set up MPF processing
Define the MPF trustee's address as a location within the application.
See: Setting Up Locations, Oracle HRMS Enterprise and Workforce Management Guide
Create an MPF Trustee Organization.
Enter additional organization information trustee details. See: MPF Trustee Organizations: Entering Additional Trustee Details
Enter additional organization information scheme details. See: MPF Trustee Organizations: Entering Additional Scheme Details
Define the MPF Information element link to administer MPF processing for your employees.
Note: The MPF Information element should not be standard linked, as the element requires a Scheme to be entered for all employees at the time of enrolment. It is not necessary to enter any Costing information for the link of the MPF Information element, as this is an enrolment element, and no payment results will be produced for this element.
See: Defining Element Links, Oracle HRMS Compensation and Benefits Management Guide
Define Balances for MPF.
Note: Prior to enrolling an employee onto an MPF scheme, you must define the earnings elements within your enterprise that are considered to be Relevant Income for MPF purposes, and that are to be considered Basic Pay for MPF purposes. In order to give your enterprise complete discretionary control over the earnings that fall into these two categories, two balances have been seeded. You must ensure that these balances, MPF_RI (Relevant Income for MPF calculations) and MPF_BASIC (Basic Pay for MPF calculations) are correctly fed by the appropriate earnings elements.
If you want to adjust a Mandatory Provident Fund (MPF) balance without affecting any of the other classification balances or indeed any balances that your normal MPF element feeds, you must first create an MPF Balance Adjustment element.
This topic describes the procedure for creating elements to adjust the following balances:
MPF_WITHHELD
MPF_LIABILITY
RETRO_MPF_WITHHELD
RETRO_MPF_LIABILITY
VOLUNTARY_MPF_WITHHELD
VOLUNTARY_MPF_LIABILITY
Use the Element window.
To create an MPF Balance Adjustment Element
Set your effective date to the day before the earliest date of any adjustments you wish to make.
Enter a name for your Adjustment Element (for example, MPF Withheld Adjustment).
Select the Primary Classification of Information.
Check the Processing Type Nonrecurring check box.
Check the Termination Rule Final Close check box.
Check the Adjustment Only check box.
Save your element definition.
Choose the Input Values button to open the Input Values window.
Enter each of the input values shown in the table:
| Name | Units | Sequence | Required | User Enterable | Formula | Warning on Error |
|---|---|---|---|---|---|---|
| Amount | Money | 1 | Y | Y | ||
| Source | Integer | 2 | Y | Y | HK_MPF_SCHEME_ID | Error |
| Membership ID | Character | 3 | Y | Y | ||
| Period Start Date | Date | 4 | Y | Y | ||
| Period End Date | Date | 5 | Y | Y |
Enter the following additional input value for balance adjustment elements that are to adjust the MPF_LIABILITY or RETRO_MPF_LIABILITY balances:
| Name | Units | Sequence | Required | User Enterable | Formula | Warning on Error |
|---|---|---|---|---|---|---|
| Assessed RI | Money | 6 | Y | Y |
Save your input values.
Oracle HRMS enables you to adjust balances for a Mandatory Provident Fund (MPF) scheme.
To adjust MPF balances and also adjust the Net Pay, Payments, and other Classification balances such as Mandatory Deductions and Employer Liabilities, you can use the MPF elements.
To adjust MPF balances without impacting any other balances, you must first create an MPF Balance Adjustment element. See: Setting Up MPF Balance Adjustments.
The process for a balance adjustment using either an MPF element or an MPF Balance Adjustment element is the same.
Use the Adjust Balances window.
To adjust employee balances for an MPF scheme
Set your effective date to the date on which you want the adjustment to come into effect.
Select the element name you wish to use to make the adjustment.
If you want to have this adjustment costed and transferred to the general ledger, check the Costed check box.
Enter the value of the adjustment. To add to a balance, enter this as a positive value (such as 1000.00). To reduce a balance, enter this as a negative value (such as -1000.00).
Note: When using MPF elements, this value is entered into the input value Pay Value. When using an MPF Balance Adjustment element, this value is entered into the input value Amount.
Enter the source number. This is the Oracle HRMS identification number for the scheme.
Enter the employee's Membership ID.
Enter the period start and end dates. These are the start and end dates of the periods being impacted by the balance.
Note: The effective date should be set to a date between the period Start and End Dates.
Save your balance adjustment. You will note the status of the adjustment changes to Completed.
You can enroll an employee assignment onto a Mandatory Provident Fund (MPF) scheme using the Element Entries window.
To enroll an employee assignment onto an MPF scheme
Set your effective date to the date on which you want the entry to come into effect.
For New Hires, this should normally be the hire date, as this is the date from which Employer Liabilities are due. Unless you enter override dates in the entry values, there will be no deductions for the normal 60-day waiting period. Deductions begin in the payroll period that includes the 60th day. This payroll run retrospectively calculates employee deductions and employer liabilities for any liable relevant income paid in previous periods.
For employees who are changing the scheme, this should be the date on which the employee has elected to commence deduction for the new scheme. It is recommended that such changes occur on period start dates. The payroll run attempts to calculate mandatory deductions and employer liabilities for each scheme in which the assignment is enrolled. Therefore, terminate the assignment's enrolment in the old scheme on the final day of the previous pay period to ensure that double deductions are not made.
Choose New Record to enter a new element entry.
Select the element name MPF Information.The application automatically shows the processing type as Recurring.
Enter any appropriate costing information for this element.
See: Data Costed at the Element Entry Level, Oracle HRMS Enterprise and Workforce Management Guide
Enter a reason for assigning this element to the assignment.
Choose the Entry Values button to open the Entry Values window to proceed with the enrollment.
Enter the assignment's scheme membership identifier, if supplied by the Trustee.
Select the appropriate wage base on which to calculate voluntary deductions and liabilities.
You can retain the default, which is Relevant Income. This causes MPF to calculate voluntary deductions and liabilities on earnings feeding the MPF_RI balance. You can change this to Basic Salary, which will cause MPF to calculate voluntary deductions and liabilities on earnings feeding the MPF_BASIC balance instead.
Enter a percentage on which to calculate employee voluntary deductions (EE Voluntary Percentage), or accept the defaulted percentage.
Select a calculation rule for employee voluntary deductions (EE Voluntary Calc Rule).
You can retain the default, which is Flat Percentage. This causes MPF to calculate the voluntary deduction as a flat percentage of the relevant income/basic salary. You can change this to Net of Mandatory Contribution, which will cause MPF to calculate the employee's total contribution as a flat percentage of the relevant income/basic salary. This derives the voluntary deduction as the difference between the employee's total contribution and the mandatory deduction. Using the Net of Mandatory Contribution option permits you to offer your employees the maximum advantage of tax allowances.
Enter a percentage on which to calculate employer voluntary liability (ER Voluntary Percentage), or accept the defaulted percentage.
Select a calculation rule for employer voluntary liability (ER Voluntary Calc Rule).
You can retain the default, which is Flat Percentage. This causes MPF to calculate the voluntary liability as a flat percentage of the relevant income/basic salary. You can change this to Net of Mandatory Contribution, which will cause MPF to calculate the employer's total contribution as a flat percentage of the relevant income/basic salary. This derives the voluntary liability as the difference between the employer's total contribution and the mandatory liability. Using the Net of Mandatory Contribution option permits you to offer your employees the maximum advantage of tax allowances.
Optionally, enter a Qualifying date to override the normal Qualifying Date (that is, Day 60 depending on age constraints). By leaving this field blank, you are accepting the standard age and day 60 eligibility processing.
Optionally, enter an employee deductions start date (EE Deductions Start Date) to override the normal date (that is, Day 31 depending on age constraints). By leaving this field blank, you are accepting the standard age and day 31 eligibility processing.
Optionally, enter an employer liability start date (ER Liability Start Date) to override the normal date (that is, Day 1 depending on age constraints). By leaving this field blank, you are accepting the standard age and day 1 eligibility processing.
Optionally, enter Contributions End Date to override the normal end processing date (that is, age 65 for active assignments). By leaving this field blank, you are accepting the standard processing.
Click in the Further Entry Information field to open the Further Element Entry Information window to open. Select a scheme description.
The Oracle HRMS identification number, shown in parantheses after the scheme name, is required as the input value source for balance adjustments to the employee deductions of employer liabilities for this scheme. See: Adjusting Balances for an MPF Scheme
Save the element entry details.
You may also make lump sum employee deductions and/or employer liabilities to a Mandatory Provident Fund (MPF) scheme. These are lump sums that are processed during an employee's payroll, and make deductions for the employee's payment and/or add to the employer's contribution for the particular period.
Voluntary Lump Sum Deductions and Employer Liabilities are reported as Voluntary MPF Deduction or Voluntary MPF Liability on the employee's Pay Advice.
Use the Element Entries window.
To enter a Lump Sum deduction/liability to an MPF scheme for an employee assignment period
Set your effective date to the date on which you want the entry to come into effect.
Choose New Record to enter a new element entry.
Select the element name Voluntary MPF Lump Sums. Processing type will automatically show Non-Recurring.
Enter any appropriate Costing information for this element.
See: Data Costed at the Element Entry Level, Oracle HRMS Enterprise and Workforce Management Guide
Enter a reason for assigning this element to the assignment, if any have been defined, and it is applicable to do so in your implementation.
Choose the Entry Values button to open the entry values window to proceed with the enrollment.
Enter the assignment's scheme membership identifier, if supplied by the Trustee. If you do not enter a Membership ID, the MPF element uses the employee's HKID to identify the assignment deductions.
Enter the Employee Deduction Amount. This will be a flat deduction from the employee's periodic earnings.
Note: This element applies only to the pay period at your effective date.
Enter the Employer Liability Amount. This employer contribution is added to the voluntary employer liabilities for the period.
Note: This element applies only to the pay period at your effective date.
Click in the Further Entry Information field to open the Further Element Entry Information window, then select a scheme description.
The scheme identification number, shown in parentheses, is required as the input value source for balance adjustments to the employee deductions of employer liabilities for this scheme.
Save the element entry details.
This is a contribution report submitted to the Mandatory Provident Fund (MPF) Trustee detailing contributions for the period. A separate report is produced for each scheme offered. A single employer may offer several schemes to the employees. The MPF Remittance Report is composed of two main sections, Part I applicable for new employees and Part II applicable for existing employees.
You run reports from the Submit Requests window.
To run the MPF Remittance Report
In the Request Name field, select MPF Remittance report.
In the Parameters window, select the Scheme ID, Legal Employer ID, and the contribution start and end dates.
Enter the commission surcharge part I mandatory and voluntary, which is applicable for new employees, and commission surcharge part II mandatory and voluntary, which is applicable for existing employees.
Choose the Submit button.
Oracle HRMS for Hong Kong supports the Minimum Wage Ordinance (MWO) functionality that enables employers to pay the statutory minimum wage to all relevant employees based on the prescribed minimum hourly wage rate and the hours, which they have worked in the relevant wage period.
Oracle provides secondary classifications, elements, balances, and formulas to enable the MWO calculations. The SOE, Payslip displays the additional remuneration to be paid to the employee if the employee does not meet the required minimum wage requirement.
Follow the steps given below to process minimum wages for employees..
Oracle provides certain balances that must be set up:
MWO_HOURS_WORKED
MWO_PAID_TIME_HOURS_NOT_WORKED
MWO_UNPAID_TIME_HOURS_NOT_WORKED
MWO_PAID_REST_DAYS
MWO_UNPAID_REST_DAYS
Identify the employees who are eligible for MWO and attach the MWO Information element to these employees.
Feed all relevant wages to MWO_WAGES (for example, overtime, commission)
Record the working hours (in any frequency - weekly or monthly) and feed them to MWO_HOURS_WORKED.
Enter standard working hours / day * # of days in the month and feed MWO_HOURS_WORKED for employees with regular working hours
Feed the total working hours to MWO_HOURS_WORKED on a monthly basis for employees with irregular working hours
Oracle provides the MWO Information element which has a predefined formula MWO_CALCULATION attached to it, which checks for the minimum wages and adjusts the wages if they fall below the statutory minimum wage requirement.
If the employee does not meet the minimum wage criteria, Oracle enables employers to adjust the wages of the employee using the predefined element MWO Additional Remuneration. This additional remuneration feeds the existing seeded balances MPF_RI, and MPF_Basic, and MWO Additional Remuneration to ensure additional remunerations are included for MPF calculations.
For more information and examples on the MWO functionality,, see the White Paper MWO EBS Solution Mapping with Guidelines (Doc ID 1314887.1) on My Oracle Support.
Oracle HRMS enables you to calculate proportionate earnings amounts whenever payroll-relevant data is changed during a payroll period, for example, if an employee joins or leaves the company during a payroll period or if an employee's pay grade changes during a payroll period. Oracle HRMS performs a proration calculation to ensure that the employees' earnings are calculated correctly after taking account of these changes.
If you want to prorate an earnings element, such as basic salary, assign an event group to it. An event group is a collection of proration points that share similar characteristics. You can create an event group to group together all proration points that affect an employee's salary, for example. This event group could contain proration points such as salary increases, assignment changes, and pay rate changes.
You then process the element using a formula that handles proration. You can either use a payroll formula that handles proration, or create a separate proration formula that runs after the main payroll formula only in payroll periods when a proration event occurs.
See: Sample Payroll Formulas Enabled for Proration (UK), Oracle HRMS FastFormula User Guide, Sample Proration Formula, Oracle HRMS FastFormula User Guide, and Writing Proration Formulas, Oracle HRMS FastFormula User Guide
When you define the event group, you select the events that will activate proration calculation, such as:
An employee joining or leaving the enterprise
Changes to pay grades or grade rates
Changes to pay scales and progression points
Changes to hourly or annual pay rates
Changes to working hours
Changes to allowances or deductions
Note: The proration unit can be periods, days, or hours. Proration can be applied to a monetary, time-based, or numeric amount.
Follow these steps to set up elements for net-to-gross processing.
To set up elements for net-to-gross processing
Define the elements, making sure you select the following rules:
On the Standard tab of the Element window:
Non-recurring
Final close for the termination rule
Multiple entries allowed
Skip rule of ONCE EACH PERIOD
On the Advanced tab of the Element window:
Check the Gross Up check box
Select DEFAULT_GROSSUP in the Iterative Formula field.
Choose the Input Values button to define the input values for these elements, as follows:
| Input Value Name | Purpose of Entry | Checkbox: Required | Checkbox: User Enterable | Checkbox: Database Item |
|---|---|---|---|---|
| Pay Value | Oracle Payroll returns the gross pay to this input value when it has completed the net-to-gross calculations. | No | Yes | Yes |
| Amount | Gives iterative formula the desired net pay. | Yes | Yes | No |
| Low Gross | Used by the iterative formula to hold the lower gross pay guess, to feed into the next iteration of the formula. | No | No | No |
| High Gross | Used by the iterative formula to hold the higher gross pay guess, to feed into the next iteration of the formula. | No | No | No |
| Remainder | The amount by which the additional pay to be paid by the employer (gross minus desired net) differs from the total of the balances that are eligible for grossup processing. Returned by the iterative formula. | No | No | No |
| To Within | The amount by which actual net can differ from desired net after normal processing. Must not be zero but can be a nominal amount such as 0.01. | Yes | Yes | No |
| Method | The method of iterative calculation: binary or interpolation. This determines which function the iterative formula calls. Use the lookup type ITERATIVE_METHOD and select the default INTERPOLATION, since this is usually the more efficient method. | Yes | Yes | No |
| Additional Amount | The amount to add to desired net to calculate gross pay. Returned by the iterative formula. | No | No | No |
See: Defining an Element's Input Values, Oracle HRMS Compensation and Benefits Management Guide
Choose the Balance Feeds button to confirm which balances feed your net-to-gross element.
Choose the Balance Feeds Control button to modify balance feeds that are not correct.
Choose the Iterative Rules button to set up the processing rules for the iterative formula.
Choose the Exclude Balances button to select the deductions to be paid by the employer.
See: Excluding Balances From an Element's Grossup Calculation, Oracle HRMS Compensation and Benefits Management Guide
Define the formula result rules for your elements. Select the formula CALC_GROSSUP_PAY_VALUE for the Standard processing rule. Create a formula result rule to feed the PAYMENT_AMOUNT result as a direct result to the element's pay value.
See: Defining Formula Processing and Result Rules, Oracle HRMS Compensation and Benefits Management Guide
Define element links for your elements.
Use the Iterative Processing Rules window to specify how to use the iterative formula results for an element. For example, you can specify which formula result adjusts an input value to feed into the next processing iteration, and which result stops the iterations.
To define iterative processing rules
Enter or query the element in the Element window - making sure the Iterative Flag check box on the Advanced tab is checked - and choose the Iterative Rules button.
Select a formula result in the Return Name field, and select a rule type: Adjust, Message, or Stop.
For a message, select the severity level: Fatal error, Information, or Warning. A Fatal message creates an error for the assignment action.
For an Adjust type, select the input value to adjust.
Save your work.
If you are using the DEFAULT_GROSSUP iterative formula, then define the following rules:
Note: For South African users only: If you are using the ZA_DEFAULT_GROSSUP iterative formula, then define the following rules:
| Return Name | Rule Type | Input Value to Adjust |
|---|---|---|
| ADDITIONAL _AMOUNT | Adjust | Additional Amount |
| HIGH_GROSS | Adjust | High Gross |
| LOW_GROSS | Adjust | Low Gross |
| REMAINDER | Adjust | Remainder |
| STOPPER | Stop | -- |
| For South Africa users only: TARGET_AMOUNT |
Adjust | Amount |
Run this report to see details of total earnings and deductions summarized for a specified payroll and payroll period. You may also limit the report's information by consolidation set.
The report shows three totals (Net Payment, Total Payment, Total Cost) derived from four balance totals:
Gross pay
Total deductions
Total direct payments
Total employer charges
These balance totals are broken down, first by element classification totals, then by element type totals within each classification.
You run the report in the Submit Requests window.
To run the Gross to Net Summary Report (GB)
In the Name field, select the report name. Then enter the Parameters field to open the Parameters window.
Select the payroll and payroll period for which you want to see the information.
If you want to restrict the information by consolidation set, select the name of the set.
Choose the Submit button.
Run this report to see details of total earnings and deductions for individual payrolls separately in a payroll group. You run the report in the Submit Requests window.
The report shows three totals (Net Payment, Total Payment, Total Cost) derived from four balance totals:
Gross pay
Total deductions
Total direct payments
Total employer charges
To run the Gross to Net Summary Report (GB) – Batch process
In the Name field, select the report name. Then enter the Parameters field to open the Parameters window.
Select the payroll group.
Select the payroll period for which you want to see the information.
Click Submit.