Understanding Global Payroll for Italy

This chapter discusses:

• Global Payroll for Italy.

• Global Payroll for Italy business processes.

• Delivered elements.

• Element creation.

• Element names.

• Data archiving for Global Payroll for Italy.

• Query for viewing delivered elements.

Global Payroll for Italy

Global Payroll for Italy is a country extension of the core Global Payroll application. It provides the payroll rules and elements needed to run an Italian payroll.

Global Payroll for Italy Business Processes

Global Payroll for Italy supports these business processes:

• Absence.

  The system includes rules that calculate INPS refunds and employer contributions for absences related to vacations, festivities, reduction of work hours, licenses, maternity leave, work accidents, professional illness, illness (with comporto), marriage leave, and disability leave. Global Payroll for Italy provides the S503 report that contains the details of the calculation and payment of the social security indemnities related to every event of illness or maternity for a payee on a monthly basis

• Payslips.

  Global Payroll for Italy enables you to generate payslips. You can adapt your payslip to display the exact information you require. You can also reprint the payslip numerous times.

• Loans.

  The system enables you to manage employee loans and repayment schedules.

• Social Security.

  Global Payroll for Italy manages INPS contributions. For INPS, the social security feature assesses income, calculates the different employer and employee contribution payments, applies minimum and maximum contribution income, rounding rules, and deductions, calculates decontribution, solidarity, contribution on overtime, and the weekly marche, and prepares data for the monthly DM10 and 770 declarations. The Contribution report enables you to reconcile the monthly DM10 report or to check single social security contributions.

• DM 10 reporting.

  Global Payroll for Italy enables you to deliver salary and contribution data to the National Authority for Social Security using the monthly DM10 declaration, both in paper and electronic format.

• Tax.

  The system provides rules to calculate and deduct the annual income tax withholding (IRPEF). This is done both for local and national taxes and for incomes related to the current year, previous year, and additional monthly payments. Tax detractions to gross tax are then calculated.

• IRPEF F24 control report.

  Print the report containing the tax data needed for the official F24 form. The report contains the amounts needed for all tax types: ordinary, local, previous year, and termination payments.

• 730.

  The system enables you to calculate all reimbursements and deductions linked to 730 fiscal assistance.

• Year-end reporting.

  Global Payroll for Italy provides these year-end regulatory reports:

  • CUD reports.

    Global Payroll for Italy delivers a year-end CUD report and a monthly CUD (also known as the e-mens report) for reporting tax and social security information. For the year-end report you can print both fiscal and social security portions of this report. Online pages display the annual report details showing fiscal and social security data separately.

  • 770 year-end report

    The 770 report summarizes employees' tax and social security contributions.

  • INAIL report

    The INAIL report extracts and prints the data required for the INAIL report that is submitted to the Italian National Authority for Insurance and Work Accidents (Istituto Nazionale per I'Assicurazione degli Incidenti sul Lavoro).

• TFR Termination payments

  The system calculates the applicable income, and months of reference income, applies the specific TFR taxes, contributions, and allowances, and manages advanced TFR payments. Global Payroll for Italy includes TFR reports that detail the TFR accrual calculations and payment calculation.

• Banking

  Global Payroll for Italy provides processes for generating payment data and EFT files that meet the requirements of Italian banks. An online page enables you to view the EFT files generated.

• Payroll reporting

  Global Payroll for Italy provides payroll reports that summarize the total value of earnings and deductions for a given period.

Delivered Elements

Global Payroll defines each business process for Italy in terms of delivered elements and rules. Some of these elements and rules are specifically designed to meet legal requirements, while others support common or customary payroll practices.

This section discusses:

• Delivered element creation.

• Element ownership and maintenance.

Delivered Element Creation

All of the elements and rules delivered as part of this country extension were created using the core application—the same application you use to create additional elements or rules, and (in many cases) to configure existing elements delivered as part of the Global Payroll system. Because the tools needed to redefine or create new payroll elements are fully documented in the core application PeopleBook, we do not reproduce this information here. Instead, we briefly review the relationship between the core application (which contains the tools you need to define your own elements and rules) and the country extensions (which contain country-specific rules and elements defined by PeopleSoft).

The core application has the following characteristics:

• It consists of a payroll rules engine—a flexible tool that enables users to define the rules and elements of their payroll system and execute payroll and absence calculations. Global Payroll does not embed payroll-specific logic or computations in application code. Instead, it specifies all business application logic, such as earnings, deductions, absences, and accumulators, in terms of payroll rules and elements. Global Payroll enables the user to enter and maintain payroll rules through a set of pages and offers a comprehensive set of features that enable the user to work in their preferred language or currency.

• It provides a payroll processing framework—a flexible way to define and execute payroll and absence processing flows, such as calendars, run types, pay periods, and process lists.

Country extensions have the following characteristics:

• They are built using the core application.

• They consist of statutory and customary objects (country-specific payroll rules, elements, payroll processes, reports, pages, and self-service applications).

Element Ownership and Maintenance

The delivered elements and rules of the Global Payroll country extension can be classified based on whether they are owned and maintained by the customer or by PeopleSoft developers. Some elements and rules are maintained exclusively by the PeopleSoft development organization and cannot be modified or reconfigured, while others can be configured to meet requirements unique to your organization.

Categories of Element Ownership in Global Payroll

Global Payroll has the following five categories of element ownership:

Approach to Element Ownership in Global Payroll

This table illustrates the approach to element ownership and maintenance in Global Payroll for Italy:

See Also

Defining Element Names

Element Creation

The Global Payroll core application consists of a payroll rules engine that enables you to define the rules of your payroll system and execute payroll calculations. It provides a set of pages for entering and maintaining payroll rules. All of the elements delivered as part of the country extension were created using these pages in the core application.

Global Payroll for Italy delivers most of the legal elements needed to run an Italian payroll. You must create additional elements to meet needs that are specific to your own industry or organization. To do this, use the same core components and pages that were used to create the elements delivered for Italy.

The tools needed to define payroll elements are fully documented in the core application PeopleBook.

See Also

PeopleSoft Enterprise Global Payroll 9.1 PeopleBook

Element Names

Understanding the naming convention developed for delivered elements can help you determine how an element is used, the element type, and even the functional area it serves. Depending on whether the element is a primary element, a component of a primary element, or a supporting element, one of the following naming conventions applies:

• Primary elements.

• Supporting elements.

• Component names (suffixes).

This section discusses how the following are used in the names of Italian elements:

• Functional area codes for Italy.

• Element type codes (PIN_TYPE).

• Suffixes for Italy.

Primary and Supporting Elements

Global Payroll for Italy uses the naming convention FFF TT NAME for primary elements (earnings and deductions) and supporting elements. Supporting elements are arrays, brackets, counts, dates, durations, formulas, rate codes, variables, historical rules, fictitious calculation rules, proration rules, rounding rules, accumulators, sections, element groups, and generation control conditions.

Component Names (Suffixes)

When you create an earning or deduction element in Global Payroll, you must define the components, such as base, rate, unit, and percentage, that make up the element. The system automatically generates the components and accumulators for the element based on the calculation rule or accumulator periods. The system also names the components and accumulators by appending a suffix to the name of the element.

For example, you define the earning element named EARN1 with the calculation rule EARN1 = Rate × Unit. The system automatically creates two additional elements for the components in the calculation rule: a rate element called EARN1_RATE and a unit element called EARN1_UNIT.

In Global Payroll for Italy, all suffixes fall into one of the following types:

• Separator.

• Earnings/deductions component suffixes.

• Earnings/deductions accumulator suffixes.

• Deduction arrears component suffixes.

See Also

Defining Suffixes

Functional Area Codes

This table lists the functional area codes used in the names of Italian elements:

Element Type Codes (PIN_TYPE)

This table lists codes for all the element types. Because not all element types are delivered for Italy, not all of these codes appear in the names of Italian elements.

Suffixes

Global Payroll for Italy uses the default core Global Payroll suffixes.

See Also

Defining Suffixes

Data Archiving for Global Payroll for Italy

Global Payroll for Italy generates a large amount of result data. To keep the amount of saved data manageable, you should periodically archive it. PeopleSoft PeopleTools delivers an archiving tool called the Data Archive Manager. To help you archive your result data using the Data Archive Manager, Global Payroll for Italy delivers a predefined archive object (GPIT_RSLT_ARCHIVE) and an archive template (GPITRSLT). The delivered archive template uses queries that select data by calendar group ID (CAL_RUN_ID field).

Note. Please use extreme caution when making changes to delivered archive objects, queries, or templates. Any modifications can result in the loss of important data.

See Also

Archiving Data

Enterprise PeopleTools PeopleBook: Data Management

Query for Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Italy. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 9.1 PeopleBook.

See Also

Understanding How to View Delivered Elements