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 Payroll allows you to process tax and insurance deductions for employers and employees, and helps you comply with the legislative requirements applying to your organization.
Yes. Oracle Payroll supports many country specific models of taxation, including the local, federal and state tax requirements of organizations operating in the US.
Yes. You can calculate taxes for different types of employer to represent the diversity of your organization. You can also make retrospective adjustments to allow for overpayments and underpayments.
Yes. The details of taxation policy and social security entitlements are constantly changing, but Oracle Payroll is always promptly updated so that your processing includes the most recent updates.
Yes. EDI allows two-way electronic transmission of documents between the Inland Revenue and employers. Oracle UK Payroll has developed a specified formatted file that, if used in conjunction with third party software, can be transmitted electronically to the Inland Revenue.
You can use Oracle HR to update your records throughout the year to show all the Class 1A National Insurance contributions for which your organization is liable. You can make this information available to employees so that they can preview their NI liabilities. You can then generate a report to view the final details and you can submit the complete and validated records to the Inland Revenue to comply with all reporting requirements.
Oracle Payroll provides as startup all the elements, balances and other components that you need to process voluntary and involuntary employer and employee deductions that are payable to the Mandatory Provident Fund (MPF) Board and other legislative deductions.
It also provides legislative upgrades to keep your payroll processing up to date with current legislation.
Oracle HRMS enables multiple results to be stored against the specific contribution type and provides a single source of information about that contribution for reporting purposes.
See: Predefined Elements
Mandatory deductions are employee contributions to the Mandatory Provident Fund and are deducted from employee net pay.
These deductions are tax-deductible involuntary deductions paid by the employee. These include court orders and child support.
Voluntary deductions include Mandatory Provident Fund deductions and user defined deductions, for example, loss of pass card, and taxable deductions such as loans, unpaid leave, payments to external organizations, and union subscriptions.
The IR56B is a statement of earnings for each employee. You must run this report after running the IR56B archive process. The IR56B Report creates a report containing the employee and balance information archived by the archive process. The Inland Revenue uses this information to assess individual statements and informs the employee about the tax payable for the past financial year.
See: Running the IR56B Archive Process
You can run a full and a partial IR56B report. The full report includes information about all the assignments in the selected archive payroll action, whereas the partial report includes information about a specific assignment.
You cannot run a Partial IR56B report unless a full run has already been submitted and you cannot run two full runs for the same year.
You run the IR56B report from the Submit Requests window.
To run the IR56B: Annual Employer's Return Hong Kong (Full) report
In the Request Name field, select IR56B: Annual Employer's Return Hong Kong (Full).
In the Parameters window, select the Archive Action ID. Each time you run the IR56B Archive process, Oracle HRMS generates an archive action ID for the specific run.
Click OK and then Submit.
To run the IR56B: Annual Employer's Return Hong Kong (Partial) report
In the Request Name field, select IR56B: Annual Employer's Return Hong Kong (Partial).
In the Parameters window, select the Archive Action ID and assignment number.
Click OK and then Submit.
The IR56B is a statement of earnings for each employee. You must run this report after running the IR56B archive process. The IR56B Report creates a report containing the employee and balance information archived by the archive process. The Inland Revenue uses this information to assess individual statements and informs the employee about the tax payable for the past financial year.
See: Running the IR56B Archive Process
You can run a full and a partial IR56B report. The full report includes information about all the assignments in the selected archive payroll action, whereas the partial report includes information about a specific assignment.
You cannot run a Partial IR56B report unless a full run has already been submitted and you cannot run two full runs for the same year.
You run the IR56B Report (Obsolete) from the Submit Requests window.
To run the IR56B Annual Employers Return Hong Kong (Full) (Obsolete):
In the Request Name field, select IR56B Annual Employers Return Hong Kong (Full) (Obsolete).
In the Parameters window, select the Archive Action ID. Each time you run the IR56B Archive process, the application generates an archive action ID for the specific run.
Click OK and then click Submit.
To run the IR56B Annual Employers Return Hong Kong (Partial)(Obsolete) Report:
In the Request Name field, select IR56B Annual Employers Return Hong Kong (Partial)(Obsolete).
In the Parameters window, select the Archive Action ID and Employee Name.
Click OK and then click Submit.
The legal employer submits the IR56E report for new hires. The report based on the IRD's layout guidelines includes information such as the employee's name, identification details, residential address, legal employer details, and employment information.
You run the report from the Submit Requests window.
To run the IR56E: Employer's Return Hong Kong Report:
In the Request Name field, select IR56E: Employer's Return Hong Kong.
In the Parameters window, select the Employee Name to report on an individual employee. If you leave this field blank, the report includes all employees for the selected legal employer.
Select the name of the legal employer.
Select the Mode. The options are Draft and Final. The default is Draft. When you select the mode as Draft, you can change the details of the IR56E return. When you select the mode as Final, you cannot change the report.
Select the Latest Hire Date to print the IR56E report for employees who were employed on or after the hire date.
Note: If you leave these fields blank, then the report includes all the employees.
Click OK and then click Submit.
A legal employer submits the IR56E report for new hires. The report based on the IRD's layout guidelines includes information such as the employee's name, identification details, residential address, legal employer details, and employment information.
You run the IR56E report from the Submit Requests window.
To run the IR56E Report (Obsolete)
In the Request Name field, select IR56E Employers Return (Obsolete).
In the Parameters window, select the Employee Name to report on an individual employee. If you leave this field blank, the report includes all employees for the selected legal employer.
Select the name of the legal employer.
Select Yes in the Final field to print the final report.
The default is No. This prints the report in draft mode, allowing you to make any changes to the details of the IR56E return. If you select Yes, then the report is printed in final mode and cannot be changed.
Select the Latest Hire Date to report for employees who were employed on or after the hire date.
Note: If you leave these fields blank, then the report includes all the employees.
Click OK and then click Submit.
The IR56F is a notification by the employer about an employee who is leaving the enterprise but intending to stay in Hong Kong. The report based on IRD layout guidelines includes details about income, expected cessation date, and the reason for cessation.
You run the report from the Submit Requests window.
To run the IR56F: Employee Cessation Remaining in Hong Kong Report:
In the Request Name field, select IR56F: Employee Cessation Remaining in Hong Kong
In the Parameters window, select the Employee Name.
Click OK and then click Submit.
The IR56F is a notification by the employer about an employee who is leaving the enterprise but intending to stay in Hong Kong. The report based on IRD layout guidelines includes details about income, expected cessation date, and the reason for cessation.
You run the IR56F report from the Submit Requests window.
To run the IR56F Report (Obsolete):
In the Request Name field, select IR56F Employee Cessation Remaining in Hong Kong (Obsolete).
In the Parameters window, select the Employee Name.
Click OK and then click Submit.
This report is a notification by the employer about an employee who is leaving the enterprise and also departing from Hong Kong. The report layout based on IRD guidelines includes information such as the employee's residential address, details of income, the reasons for the employee's departure from the company, the date of leaving the enterprise, period of employment and whether the employee is returning to Hong Kong later.
You run the report from the Submit Requests window.
To run the IR56G: Employee Cessation Departing Hong Kong Report:
In the Request Name field, select IR56G: Employee Cessation Departing Hong Kong Report.
In the Parameters window, select the Employee Name.
Click OK and then click Submit.
This report is a notification by the employer about an employee who is leaving the enterprise and also departing from Hong Kong. The report layout based on IRD guidelines includes information such as the employee's residential address, details of income, the reasons for the employee's departure from the company, the date of leaving the enterprise, period of employment, and whether the employee is returning to Hong Kong.
You run the IR56G Report (Obsolete) from the Submit Requests window.
To run the IR56G Report (Obsolete):
In the Request Name field, select IR56G Employee Cessation Departing Hong Kong (Obsolete).
In the Parameters window, select the Employee Name.
Click OK and then click Submit.