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
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.
Note: Be aware that some processes require the calendar to extend into the future. For example, the PTO Carry Over process requires payroll periods extending to the end of the new accrual term.
When you enter the First Period End Date, make sure that the corresponding start date of the first period is after the start date of the payroll.
In the Date Offset region, you can change the zero default to a negative or positive number of days before or after the period end date. For example, for a semi-monthly payroll, the Cut Off date can be 3 days before the period end date (-3), while the Scheduled Run and Check dates can be 5 and 7 days after this date, respectively. You can also set the Payslip offset to determine when employees can view payslip information.
The Check Date, sometimes called Pay Date, is the date of constructive receipt of pay, on which paychecks become negotiable.
The Scheduled Run Date is the date scheduled for the Regular run of this payroll each period.
The Cut Off date, included for your reference, is the final date for entering or changing payroll information before a run.
A payslip offset, reckoned from the completion date for your payroll processes is always a positive number to enable you to prevent employees from viewing payslips before the official payment date. For example, if the payroll processes complete on 15th May, and employees do not receive payment until 20th May, you can enter an offset of 5 to align the payslip date to the payment date.
Note: Australia, China, Hong Kong, India, Japan, Korea, Singapore, and New Zealand users: You can set the payslip offset to determine when employees can view their payslip information.
These offsets are the defaults for the calendar. You can manually make date changes in the calendar (such as when an offset date falls on a weekend or holiday, by choosing Period Dates).
Select a default payment method for employees who have no valid personal payment method. You cannot select a method using 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 Enterprise and Workforce Management Guide
Check the Negative Payment Allowed check box if you want the PrePayments process to include negative payments. If you leave the box unchecked, the PrePayments process ignores negative payments.
Check the Multiple Assignment check box if you want an employee to receive a single payment, for multiple assignments carried out within your organization. However, if a PrePayments process, which runs prior to your effective processing date, already exists you cannot go back and change the Multiple Assignment check box. This box is only visible if the functionality is enabled for your localization.
Note: If you check the Multiple Assignment check box, make sure it remains checked throughout your payroll processing. Oracle Payroll reports in error if some of your payroll processes support multiple assignment processing and others do not.
If you are an Oracle Payroll user, enter the Statutory Information field to open the Statutory Information window.
Your Oracle localization team may have created fields in this window.
Note: The Statutory Information field is not visible if your HR:User Type profile option is set to HR User.
If the Payslip Modeler is enabled for your localization, then you can set locking period for payslip modeling. This restricts users from making updates to payroll information while modeling their payslip during a mock payroll run during the specified period.
Specify the number of days prior to and after a specified date when can you make changes for modeling the payslips.
You can specify the Availability Rules whether to disable the functionality days after the period start and days prior to the End date or enable the functionality between the days from start and before the period end date.
Note: You cannot make any changes beyond the days specified here for payslip modeling.
For Korea users only: Click in the Further Payroll Information field and specify the exemption amounts.
By default, the application uses the TRUNC function for tax calculations. Specify Yes if you want the application to use ROUND function instead of TRUNC function for tax calculations.
Specify if you want to adjust the amounts for standard tax breaks.
Specify if you want to enable reprioritization of pension related amounts as the last priority within the calculation category.
For Japan users only:
Click in the Further Payroll Information field and specify the following information
income tax dependent reference type
social insurance premium collection type
user defined year end adjustment formula
Hi Wp Monthly Remuneration Synchronous
Geppen Santei Process Date (MMDD)
Print Personal Number
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 Open status in any period to Closed to prevent further element entries. You can also reopen the period if necessary.
Important: Use this feature with caution. When you perform certain important tasks in Oracle HRMS, the system may automatically create or delete element entries. These tasks include hiring and terminating people, and updating assignments. You cannot change any element entries that span a closed payroll period, and so you may be prevented from performing these tasks.
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 in Oracle HRMS Workforce, Sourcing, Deployment, and Talent Management Guide