Understanding Manage French Profit Sharing

This chapter provides an overview of Manage French Profit Sharing and discusses:

• Manage French Profit Sharing business processes.

• Manage French Profit Sharing terms.

Manage French Profit Sharing

The Manage French Profit Sharing business process in Human Resources is for French customers who need to manage their profit-sharing and worker's participation agreements. Here is a summary of the features of this business process:

• Ability to define agreements and link the agreement document, giving online access to agreement definitions.

• Automatic calculation of global funds and each employee's personal fund.

• Compensation administrators can review and adjust the results of the calculation at every stage and approve fund release and track fund transfer.

• Online access for employees to view agreement and fund information.

  Employees can also update their investment settings and request release of funds.

• Integrating Human Resources with Global Payroll for France enables you to automatically process payments for profit-sharing and worker's participation funds.

• Integration points enable you to integrate other payroll systems with Manage French Profit Sharing.

• Workflow provides automatic notification of profit sharing events for employees and compensation administrators.

• Reports provide details of employees' profit-sharing funds.

Manage French Profit Sharing Business Processes

Manage French Profit Sharing supports the following business processes:

• Agreement definition.

  The Manage French Profit Sharing business process supports two types of agreements, profit-sharing agreements and worker's participation agreements. You define all the rules relating to the agreement, including eligibility criteria, calculations for computing the global fund and sharing it between employees, and the investment methods available. Calculations are based on company results and payroll information over a period known as a reference period. You create one or more reference periods for each agreement, depending on the duration of the agreement.

• Eligibility processing.

  The Extract Eligible Employees Application Engine process (HR_WP_ELIGIB) identifies the employees who qualify for profit sharing under the terms of an agreement and imports payroll information for all eligible employees from Global Payroll for France, or from a record that you have populated from another payroll system.

• Calculating and distributing profit sharing.

  PeopleSoft provides two processes, Compute Global Fund Application Engine process (HR_WP_GBLFND) and Distribute Global Funds Application Engine process (HR_WP_SHARE), that calculate the global funds and each employees' personal entitlement. These processes calculate the global funds available using formulas defined in the agreement, and divide funds according to the distribution rules in the agreement. PeopleSoft deliver legal formulas for calculating funds, where these are defined by French legislation.

• Payment and Interest processing.

  Earnings from profit sharing are liable for deductions. The Payment and Interest process automatically calculates employees' deductions. For those employees who receive interest on profit sharing funds, the system also calculates the interest amount and the deductions for the interest payment. If you have integrated Human Resources with Global Payroll for France or another payroll system, you can process employee payments for worker's participation agreements and profit-sharing agreements where the investment is managed internally.

• Administering and reporting profit sharing.

  The Manage French Profit Sharing business process provides administration options for reviewing employees' profit sharing details, and adjusting the results of the automated processes, if required. Compensation administrators approve employee requests for fund release and can track fund transfers using the Member Entitlement component.

• Profit sharing for employees.

  Employees have access to their profit sharing information online by using Human Resources. The Manage French Profit Sharing business process provides employee options for viewing details of approved agreements and personalizing agreement settings, and viewing personal entitlements. In addition, employees who are entitled to funds from a profit-sharing agreement can submit requests for fund releases.

Manage French Profit Sharing Terms

This section discusses the Manage French Profit Sharing terms used in this PeopleBook.

Manage Profit Sharing Terms Used in This PeopleBook