PeopleSoft Enterprise Global Payroll for the United Kingdom 9.1 PeopleBook

Setting Up Share Schemes and Loans

This chapter provides overviews of share schemes and employee loans and discusses how to:

Modify and update share scheme deductions.
Set up share schemes.
Modify and update the loan deduction.
Set up loan types.
Schedule the Update Loan End Date process.

Understanding Share Schemes

This section discusses:

Delivered share scheme deductions.
Process lists and sections.
Viewing delivered elements.

Delivered Share Scheme Deductions

This table lists the deduction elements delivered for share schemes:

Name/Description	Unit	Rate	Base	%	Amount
SS DD SVE AA Share Save Actual Amount	N/A	N/A	N/A	N/A	Payee Level
SS DD SVE NA Share Save Normal Amount	N/A	N/A	N/A	N/A	Payee Level
SS DD BUY AA Share Buy Actual Amount	N/A	N/A	N/A	N/A	Payee Level
SS DD BUY NA Share Buy Normal Amount	N/A	N/A	N/A	N/A	Payee Level
SS DD BUY AP Share Buy Actual Percentage	N/A	N/A	Payee Level	Payee Level	N/A

You can modify the delivered deductions or create your own. Link deductions to share schemes on the Define Share Schemes GBR page.

Note. It is not mandatory to store both the actual amount and normal amount. Only the actual deduction field is required on the Define Share Schemes GBR page.

See Also

Setting Up Share Scheme Definitions

Delivered Share Scheme Earnings

This table lists the earnings delivered for share scheme refunds and share sales:

Name/Description	Unit	Rate	Base	%	Amount
SS ER SVE CR Share Save Contribution Return	N/A	N/A	N/A	N/A	Payee Level
SS ER SVE RB Share Save Residual Balance	N/A	N/A	N/A	N/A	Payee Level
SS ER BUY CR Share Buy Contribution Return	N/A	N/A	N/A	N/A	Payee Level
SS ER BUY RC Share Buy Residual Cash	N/A	N/A	N/A	N/A	Payee Level
SS ER BUY TX Share Buy Taxable Sale	N/A	N/A	N/A	N/A	Payee Level
SS ER BUY NT Share Buy Non-Taxable Sale	N/A	N/A	N/A	N/A	Payee Level

Note. If you want to use any of these earnings to refund contributions, use positive input to process the earning. The amounts are not calculated by Global Payroll for the UK

See Also

Working with Positive Input

Delivered Supporting Elements

This table lists two key supporting elements used in the definition of the delivered share scheme deductions and share schemes:

Element Type	Element Name	Description
Accumulator	SS AC BUY	The accumulator that is used to calculate contributions based on a percentage of earnings. The accumulator is associated with the share buy scheme on the Define Share Schemes GBR page. You can use the delivered accumulator or define your own for use with your organization's share schemes. See Setting Up Share Scheme Definitions.
Formula	SS FM POST	A post process formula attached to all the share scheme deductions. It contains rules for suspending contributions during maternity leave, insufficient earnings, leaver and limits processing.

Element Type

Element Name

Description

Accumulator

SS AC BUY

The accumulator that is used to calculate contributions based on a percentage of earnings. The accumulator is associated with the share buy scheme on the Define Share Schemes GBR page. You can use the delivered accumulator or define your own for use with your organization's share schemes.

See Setting Up Share Scheme Definitions.

Formula

SS FM POST

A post process formula attached to all the share scheme deductions. It contains rules for suspending contributions during maternity leave, insufficient earnings, leaver and limits processing.

Process Lists and Sections

These sections are delivered for share scheme processing:

GBR SE SHAREBUY

This section is processed before tax because share buy contributions are pre-tax deductions.
GBR SE SHARESAVE

This section processes share save contributions, which are post-tax deductions. If you set up your own sections and process lists, you must ensure that the share save scheme section is processed after the statutory deduction sections for tax, NI, court orders, and student loans. Generally, share save contributions are also processed after company loans.

These sections are included in the GBR PR PAYROLL process list.

Viewing Delivered Elements

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

Modifying and Updating the Share Scheme Deductions

The deductions delivered for share scheme contributions have ownership set to PS Delivered/Not Maintained. Share scheme deductions are not statutory deductions and therefore the rules associated with the deductions vary according to company policies.

You can use the delivered elements, or create your own deduction elements using the delivered elements as a template. During implementation, you need to consider how many deduction elements you want to use for share schemes. It is possible to create different deductions for each share scheme definition, or use the same deduction for multiple share schemes. If you use the same deduction for multiple schemes, the system uses the multiple resolutions feature to process the deduction. The decision to use multiple deductions or multiple resolutions has implications for setting up deduction recipients. This is explained in the banking chapter of this PeopleBook.

Note. If you create new deduction elements for share schemes, you must attach the post process formula, SS FM POST, to the deduction.

Setting Up Deduction Recipients

Setting Up Share Schemes

To set up share schemes, use these components: Define Share Scheme Types GBR (GPGB_SS_TYPES), Define Share Scheme Limits GBR (GPGB_SS_LIMITS), and Define Share Schemes GBR (GPGB_SS_DEFN). This section discusses how to:

Set up share scheme types.
Set up share scheme limits.
Set up share scheme definitions.

Pages Used to Define Share Schemes

Page Name	Definition Name	Navigation	Usage
Define Share Scheme Types GBR	GPGB_SS_TYPE	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Allowances/Other Benefits, Define Share Scheme Types GBR, Define Share Scheme Types GBR	Set up share scheme type IDs.
Define Share Scheme Limits GBR	GPGB_SS_LIMITS	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Allowances/Other Benefits, Define Share Scheme Limits GBR, Define Share Scheme Limits GBR	Define the minimum and maximum contributions for each type of share scheme.
Define Share Schemes GBR	GPGB_SS_DEFN	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Allowances/Other Benefits, Define Share Schemes GBR, Define Share Schemes GBR	Set up the rules of share schemes, including the scheme duration, contribution limits, deductions elements, and rules for processing leavers and contribution holidays.

Setting Up Share Scheme Types

Access the Define Share Scheme Types GBR page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Allowances/Other Benefits, Define Share Scheme Types GBR, Define Share Scheme Types GBR).

Scheme Type ID

Enter the identifier for the share scheme type.

Share Scheme Type

Select the share scheme type: Share Save (SAYE) or Share Buy.

Setting Up Share Scheme Limits

Access the Define Share Scheme Limits GBR page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Allowances/Other Benefits, Define Share Scheme Limits GBR, Define Share Scheme Limits GBR).

Use this page to set up and maintain the HM Revenue and Customs (HMRC) statutory share scheme limits that identify the minimum and maximum contributions that can be made to share save and share buy schemes. Share scheme limits define the total contributions to share schemes of the same type. The limits do not apply per share scheme. Therefore if a payee contributes to more than one share scheme of the same type, the system compares the total contributions with the limits on this page.

The HMRC statutory share scheme limits are delivered as sample data, but you must maintain this data.

Monthly Minimum and Monthly Maximum	Enter the minimum and maximum contribution allowed per month. If you enter monthly limits, you cannot specify an annual limit.
Weekly Minimum and Weekly Maximum	Enter the minimum and maximum contribution allowed per week. If you enter weekly limits, you cannot specify an annual limit.
Annual Maximum	Enter the maximum contribution allowed per year. If you enter an annual maximum, you cannot specify weekly or monthly limits.
Maximum Percentage	Enter the maximum percentage of earnings that payees can contribute to share buy schemes. This field is not displayed if the share scheme type ID is defined as a share save scheme (SAYE). You specify which earnings are included in the calculation when you set up the share buy scheme rules on the Define Share Schemes GBR page. The Accumulator field specifies the accumulator that stores the relevant earnings.

Setting Up Share Scheme Definitions

Access the Define Share Schemes GBR page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Allowances/Other Benefits, Define Share Schemes GBR, Define Share Schemes GBR).

Reference

Enter an identifier for the share scheme.

Scheme Type

Select the scheme type from the share scheme types you defined on the Share Scheme Type page. The scheme type you select affects the fields that are displayed on this page.

Option Price

Enter the price at which payees have the option to purchase shares and select the currency code for the shares. This field is only displayed if the share scheme type is defined as a share save scheme (SAYE). The price is for information only. It is not used in processing.

Actual Price

Enter the actual share price that applies at the scheme Start Date and select the currency code. This field is only displayed if the share scheme type is defined as a share save scheme (SAYE). The price is for information only. It is not used in processing.

Inland Revenue Approved

Select this check box if the share scheme is approved by HMRC.

Enrolment Locked

Select this check box when the enrolment period is closed and payees can no longer join this scheme.

Scheme Duration (Months)

This group box is only displayed if the share scheme type is defined as a share save scheme (SAYE).

Duration	Enter the duration, in months, of the share scheme.
Extension Period	Enter the duration, in months, of the extension period if applicable to the scheme. This is the period from the scheme end date in which payees who are enrolled in the scheme can either continue contributing or leave funds and bonus in the scheme.
Employee Override	Select this check box if the rules of the scheme allow the duration to be defined at the employee level. You must enter a maximum duration if you allow employee overrides.
Max Duration (maximum duration)	Enter the maximum duration, in months, if the share scheme allows duration to be defined at employee level.

Contribution Limits

This group box is only displayed if the share scheme type is defined as a share save scheme (SAYE).

Monthly Min (monthly minimum) and Monthly Max (monthly maximum)	Enter the minimum and maximum monthly contribution.
Weekly Min (weekly minimum) and Weekly Max (weekly maximum)	Enter the minimum and maximum weekly contribution.

Contribution Basis

This group box is only displayed if the share scheme type is defined as a share buy scheme.

Basis	Select the basis for the contribution: Fixed Amount: Contributions are a fixed amount per pay period. Percentage: Contributions are a percentage of earnings.
Monthly Min (monthly minimum) and Monthly Max (monthly maximum)	Enter the minimum and maximum monthly contribution. These fields are available if you select Fixed Amount as the basis for the contribution.
Weekly Min (weekly minimum) and Weekly Max (weekly maximum)	Enter the minimum and maximum weekly contribution. These fields are available if you select Fixed Amount as the basis for the contribution.
Min % (minimum percentage) and Max % (maximum percentage)	Enter the minimum and maximum percentage of earnings that payees can contribute to share buy schemes. These fields are available if you select Percentage as the basis for the contribution.

Payroll Processing

Dedn Actual (deduction actual)	Select the deduction element that stores the actual amount deducted from payees' salary. This is a required field. You can use the same deduction for all share schemes of the same type, or you can use a different deduction for each scheme. If the same deduction element is used for multiple schemes of the same type, multiple resolutions of that element are processed. This has implications for setting up deduction recipients. See Managing Multiple Resolutions of an Earning or Deduction. See Setting Up Deduction Recipients.
Dedn Due (deduction due)	Select the deduction element that stores the full contribution amount. This field is optional.
Accumulator	Select the accumulator that the system uses to calculate contributions based on a percentage of earnings. This field is displayed if the scheme is a share buy scheme and you select Percentage as the basis of contributions. The accumulator SS AC BUY is delivered for this purpose.
Maternity Contribution Suspend	Select this check box if contributions are suspended while payees are on maternity leave. The system checks the payees' absence history records (ABSENCE_HIST). If the payee is on maternity leave during the pay period, the system suspends contributions. Note. Contributions are only suspended if you use the absence management functionality in Global Payroll for the UK and PeopleSoft Enterprise Human Resources.
Insufficient Earnings	Select an option to define what happens if there are insufficient earnings to deduct the full contribution amount: Deduct zero: No deduction is made for the pay period. Deduct amount available: To deduct the maximum available to reduce earnings to zero. Deduct maximum percentage: To deduct the maximum percentage available. This option is only available if you are defining a share buy scheme and you select Percentage as the basis of contributions. The system calculates an employee's contribution by applying the percentage defined for the employee. If there are insufficient earnings to deduct this amount, then the maximum percentage from the Share Scheme limits GBR page is applied to the available pay (defined by GBR AC NETT SEG).
Leaver Processing	Select an option that defines how share scheme contributions are processed for employees terminated within the pay period: Process in Final Pay Period: Processes contributions as normal. Process if Employed Final Pd: Processes contributions only if the employee worked for the whole pay period. The system checks that the last day worked is the pay period end date. Do Not Process in Final Pay Pd: Contributions are not processed for payees who leave during the pay period.

Contribution Holiday

This group box is only displayed if the share scheme type is defined as a share save scheme (SAYE).

Holiday Allowed

Select this check box if the rules of the share save scheme allow employees to stop contributing to the scheme temporarily. When you select this check box, two options are displayed to define how the system manages contribution holidays. Select the option that applies:

Extend Scheme Period: Extends the scheme duration. Enter the total duration of the contribution holidays permitted under the rules of the scheme in the Total Duration (in months) field.

Employee Settle Direct: The scheme duration is unchanged and the employee pays the shortfall directly to the scheme administrators.

Total Duration (Months)

Enter the maximum duration, in months, of contribution holidays.

Understanding Employee Loans

This section discusses:

Delivered loan deduction.
Process lists and sections.
Viewing delivered elements.

Delivered Loan Deduction

This table lists the deduction elements delivered for loan repayments:

Name/Description	Unit	Rate	Base	%	Amount
LOA DD LOAN Employee Loan	N/A	N/A	N/A	N/A	System Element — Numeric
LOA DD EXCEP Loans — Exceptional repayment	N/A	N/A	N/A	N/A	System Element — Numeric

Name/Description

Unit

Rate

Base

Amount

LOA DD LOAN

Employee Loan

N/A

System Element — Numeric

LOA DD EXCEP

Loans — Exceptional repayment

N/A

System Element — Numeric

Note. We also deliver a deduction element, LOA DD TEMP, which is a temporary deduction used during processing.

For employees with more than one active loan, the system resolves the loan deduction element for each loan. For example, if an employee has 3 loans, the payroll results list three occurrences of LOA DD LOAN, with a separate result for each loan. Multiple resolution of the loan deduction is triggered by a driver accumulator, LOA AC LOAN DRV. This driver accumulator has two user keys LN VR LOAN ID (for loan ID) and LN VR LOAN TYPE (for loan type). The driver accumulator is discussed in the next section.

Delivered Supporting Elements

This section discusses:

Accumulators
Formulas
Writable arrays

Accumulators

This table describes the key accumulators used in loan processing:

Element Name	Description
LOA AC LOAN DRV	The driver accumulator that triggers multiple resolution of the loan deduction LOA DD LOAN. There are two user keys for this accumulator, LOA VR LOAN ID and LOA VR LOAN TYPE. Multiple resolution is discussed in the PeopleSoft Enterprise Global Payroll 9.1 PeopleBook See Managing Multiple Resolutions of an Earning or Deduction.
LOA AC LOAN SEG	Loan segment amount (per Loan ID).
LOA AC EXCEP SEG	Segment accumulator that stores exceptional amounts.
LOA AC LOAN TOT	Stores total amount repaid per Loan ID.

Formulas

This table describes the key formulas used in loan processing:

Element Name	Description
LOA FM CALC	The formula attached to the loan array LOA AR MAIN. It calculates the regular loan deduction.
LOA FM CHECK	Post process formula attached to the loan deductions LOA DD LOAN and LOA DD EXCEP. It checks for positive input entries.
LOA FM DED RECIPNT	Deduction recipient formula attached to the loan deduction LOA DD LOAN. If you want to use general deduction recipients for loans, you must modify the formula with your loan types and deduction recipient IDs. See Setting Up Deduction Recipients.
LOA FM WA	Post process formula attached to the temporary deduction LOA DD TEMP. It writes the loans calculation for the period into the writable array LOA WA LOAN.

Writable Arrays

This table describes the writable array populated by loan processing:

Element Name	Description
LOA WA LOAN	Used to store the employee loan results. Use the Review Loan page to view the loan results. See Viewing Payees' Processed Loans.

Element Name

Description

LOA WA LOAN

Used to store the employee loan results. Use the Review Loan page to view the loan results.

See Viewing Payees' Processed Loans.

Process Lists and Sections

The loan deductions are members of the GBR SE LOANS section that is included in the GBR PR PAYROLL process list.

If you set up your own sections and process lists, you must ensure that the loans section is processed after the statutory deduction sections for tax, NI, court orders and student loans.

Viewing Delivered Elements

Modifying and Updating the Loan Deduction

The deductions delivered for employee loans have ownership set to PS Delivered/Not Maintained. Loan deductions are not statutory deductions and therefore the rules associated with the deduction vary according to company policies. You must configure the deductions according to your organizational requirements. For example, you should consider how to set up arrears processing for loan deductions:

Do you want the system to perform net pay validation to prevent negative net pay?
Are partial amounts allowed?
How are arrears paid back?

If you select Perform Net Pay Validation and loans arrears exist, you may want to include the loans section in the process lists for supplementary runs and off cycle processing.

Deduction recipients for loans are determined by a formula, LOA FM DED RECIPNT, that is attached to the loan deduction on the Recipient page. Defining deduction recipients for loans is discussed in the banking chapter.

See Setting Up Deduction Recipients.

Warning! Do not modify the driver accumulator associated with the loan deduction. This is required for multiple resolutions to work.

Setting up deduction elements is part of the Global Payroll core application.

See Also

Defining Deduction Elements

Setting Up Employee Loan Types

To set up loan types, use the Loan Type Definition GBR component (GPGB_LOAN_TYPE). This section discusses how to set up loan types.

Page Used to Define Loan Types

Page Name	Definition Name	Navigation	Usage
Loan Type Definition GBR	GPGB_LOAN_TYPE	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Loans, Loan Type Definition GBR, Loan Type Definition GBR	Set up loan types. This includes specifying how the loan is repaid, whether breaks are allowed during the repayment period, and rules for processing leavers.

Setting Up Loan Types

Access the Loan Type Definition GBR page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Loans, Loan Type Definition GBR, Loan Type Definition GBR).

P11D Reportable

Select this check box if the loan should be included in payees' P11D reports.

Note. You can override this setting at payee level when you define loans on the Employee Loans page.

Repayment Method

Select a repayment method. The options are:

Repay Fixed Amount per Period: Payees repay the same amount every pay period.

Repay Over Number of Periods: Payees repay the loan over a fixed number of pay periods.

Repayment Holiday Option

Select the repayment holiday option:

Not Allowed: Repayment holidays are not allowed for the loan type. If you select this option, payees must repay the loan every pay period without a break.

Extend Repayment Period: Payees are allowed to extend the repayment period. If you select this option, payees can suspend repayments for one or more pay periods and extend the overall repayment period.

Increase Repayment Amount: Payees are allowed to suspend repayments for one or more pay periods, but the repayment period remains unchanged. Therefore, the repayment amount increases after the repayment holiday to compensate for the break in repayments.

The option you select here affects the adjustments you can make on the Employee Loans page.

See Entering Payee Loan Information.

Leaver Processing Option

Select the option for processing leavers:

Deduct Normal Amount: Deducts the normal repayment amount that is defined on the Employee Loans page.

Deduct Available Balance: Deducts the outstanding loan balance if there is sufficient net pay to cover the loan. Otherwise, the loan deduction reduces net pay to zero.

Deduct zero: Loan is processed but not deducted.

Interest Rates

Use this group box to record the interest rates that apply to this loan.

Note. Interest rates are informational only. Loan processing does not calculate interest amounts based on interest rates selected on this page. Record the amount of interest included within the loan on the Employee Loans page if interest is charged and the loan is included on the P11D report.

Market Rate Index and Rate Category	Select the market rate index for the loan. The system displays the market rate indexes with a Rate Category of Interest. Interest rates are defined on the Market Rate Index page (RT_INDEX_TBL).
Term	Enter the term that applies to the interest rate. You define the term on the Market Rate Definition page (RT_RATE_DEF_TBL).
From Currency Code and To Currency Code	Displays the default currency defined for the user's role using the Org Defaults by Permission Lst component (OPR_DEF_TBL_HR) that you access as follows: Set Up HRMS, Foundation Tables, Organization, Org Defaults by Permission Lst For UK users, GBP is normally the default currency.
Rate Type	Select the rate type. You associate rate types with the market rate index on the Market Rates page (RT_RATE_PNL) .
Rate	Displays the rate defined for the market rate index and rate type. You define the rate on the Market Rates page.

Scheme Type ID	Enter the identifier for the share scheme type.
Share Scheme Type	Select the share scheme type: Share Save (SAYE) or Share Buy.

Reference	Enter an identifier for the share scheme.
Scheme Type	Select the scheme type from the share scheme types you defined on the Share Scheme Type page. The scheme type you select affects the fields that are displayed on this page.
Option Price	Enter the price at which payees have the option to purchase shares and select the currency code for the shares. This field is only displayed if the share scheme type is defined as a share save scheme (SAYE). The price is for information only. It is not used in processing.
Actual Price	Enter the actual share price that applies at the scheme Start Date and select the currency code. This field is only displayed if the share scheme type is defined as a share save scheme (SAYE). The price is for information only. It is not used in processing.
Inland Revenue Approved	Select this check box if the share scheme is approved by HMRC.
Enrolment Locked	Select this check box when the enrolment period is closed and payees can no longer join this scheme.

P11D Reportable	Select this check box if the loan should be included in payees' P11D reports. Note. You can override this setting at payee level when you define loans on the Employee Loans page.
Repayment Method	Select a repayment method. The options are: Repay Fixed Amount per Period: Payees repay the same amount every pay period. Repay Over Number of Periods: Payees repay the loan over a fixed number of pay periods.
Repayment Holiday Option	Select the repayment holiday option: Not Allowed: Repayment holidays are not allowed for the loan type. If you select this option, payees must repay the loan every pay period without a break. Extend Repayment Period: Payees are allowed to extend the repayment period. If you select this option, payees can suspend repayments for one or more pay periods and extend the overall repayment period. Increase Repayment Amount: Payees are allowed to suspend repayments for one or more pay periods, but the repayment period remains unchanged. Therefore, the repayment amount increases after the repayment holiday to compensate for the break in repayments. The option you select here affects the adjustments you can make on the Employee Loans page. See Entering Payee Loan Information.
Leaver Processing Option	Select the option for processing leavers: Deduct Normal Amount: Deducts the normal repayment amount that is defined on the Employee Loans page. Deduct Available Balance: Deducts the outstanding loan balance if there is sufficient net pay to cover the loan. Otherwise, the loan deduction reduces net pay to zero. Deduct zero: Loan is processed but not deducted.