Understanding Global Payroll for New Zealand

This chapter discusses:

• Global Payroll for New Zealand.

• Business processes supported by Global Payroll for New Zealand.

• Delivered elements for New Zealand.

• The naming convention of delivered elements.

• Archiving data for Global Payroll for New Zealand.

• Viewing delivered elements.

Global Payroll for New Zealand

Global Payroll for New Zealand is a country extension of the core Global Payroll application. It provides you with the payroll rules, elements, and absence processes needed to run a New Zealand payroll.

Global Payroll for New Zealand Business Processes

Global Payroll for New Zealand supports the following business processes:

• Taxation.

  Global Payroll for New Zealand comes with all the elements required to calculate a payee's tax correctly. Whatever the scenario—multiple payments within a calendar period, annualized tax, mid-period hires, or terminations—the system correctly calculates the tax.

• Net-to-gross Payments.

  Gross ups are required when you want to pay a payee a specific net amount. Starting from the net amount the system works out what gross amount to process so that after all tax deductions have been made the required net amount remains.

• Banking and Recipient Processing.

  The banking process of Global Payroll brings together payroll data, pay entity source bank data, payee or recipient bank data. The EFT file creation process extracts data compiled by the banking process according to the type of EFT file that you are creating, merges it with data provided by the New Zealand country extension, and creates the file for transmission.

• Off-Cycle Payments

  Using the Off Cycle on Demand component, you can set up and process payments outside of the normal payroll schedule. Off-cycle transactions are usually made to correct prior payments, enter manual payments, or to make advance payments that can't wait until the next scheduled payroll run.

  Important! Advance payments do not replace New Zealand Pay in Advance functionality used for absences.

  See Managing Off Cycle Processing.

• Payslips.

  The design of the payslip feature enables you to create and control payslips that display the data that you want, where you want it and in the format that you want. You can override templates at lower levels, so you do not have to create multiple templates to cover every payslip scenario that you may have.

• General Ledger Interface.

  Building on the Global Payroll general ledger interface, the New Zealand country extension enables you to link journal types to GL groupings so you can report by journal type, calculate accrued salary and leave liability, report leave liability and run the GLI processes.

• Absences and Terminations.

  Global Payroll for New Zealand delivers predefined rules for processing absence payments, such as annual leave, sick leave, unpaid leave, special leave, long service leave and ACC leave. Rules are also delivered to calculate absence entitlements on termination, including rules for the payment of unused annual leave and the proration of pay for public holidays that occur within fourteen days after an employee is terminated

• IRD Reporting

  The functionality within this Global Payroll country extension enables you to meet the New Zealand Inland Revenue Department's (IRD) requirement to produce the IR 345/6 Employer deductions Remittance certificate twice a month and the IR 348 Employer Monthly Schedule (EMS).

See Also

Managing Tax Calculations

Understanding Net-to-Gross Payment Calculation

Running Banking and Recipient Processes

Printing and Viewing Payslips

Using the General Ledger Interface

Defining Absence and Termination Rules

Managing Inland Revenue Department (IRD) Reporting

Understanding Delivered Elements for New Zealand

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

Creating Delivered Elements

All of the elements and rules delivered as part of your country extension were created using the core application—the same application you will use both to create additional elements or rules, and to configure existing elements delivered as part of your 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 your Global Payroll country extension can be classified according to whether they are owned and maintained by the customer or by PeopleSoft. Some elements and rules are maintained exclusively by PeopleSoft and cannot be modified, while others can be configured to meet requirements unique to each organization.

Element Ownership in Global Payroll

There are 5 categories of element ownership:

Element Ownership in Global Payroll for New Zealand

Of the five ownership categories listed in the previous section, only PS Delivered/Maintained and PS Delivered/Not Maintained are used to define elements for New Zealand. Although Global Payroll for New Zealand delivers some elements as PS Delivered/Maintained, the large majority of elements are designated PS Delivered/Not Maintained. This enables you to modify, update, and reconfigure the delivered elements to meet needs that are specific to your organization.

Note. In general, Global Payroll for New Zealand uses the ownership category PS Delivered/Not Maintained except where the modification of an element might interfere with calculations designed to satisfy legislative requirements. The value of this approach is clearly evident in the setup of delivered accumulators. Because balance accumulators (for example, those storing taxable gross on a year-to-date basis) must be set up to comply with the legislative requirement for calculating taxes, Global Payroll for New Zealand defines them as PS Delivered/Maintained (meaning you cannot modify or directly add new elements to them). However, you can add new elements to these accumulators using the delivered segment accumulators, which serve as the basic entry point into the system and are not maintained by PeopleSoft. Therefore, when you define a new earning or deduction, you can assign the element to a segment accumulator, and the segment accumulator automatically contributes to the correct balance accumulators.

In the following table of elements supplied with Global Payroll for New Zealand, the ownership of all elements is PS Delivered/Not Maintained with exceptions shown in the Exceptions column.

Note. These element types have no exceptions so are not shown in the table: Absence Entitlement, Absence Take, Count, Duration, Element Group, Earning, Process, Rate Code, Rounding Rule, Section.

See Also

PeopleSoft Enterprise Global Payroll 9.1 PeopleBook

Naming Elements

To understand how delivered payroll elements function in the system, you need to understand their names. The naming convention for PeopleSoft-delivered elements enables you to 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.

Supporting Elements

For supporting elements, such as variables, formulas, dates, durations, and so on, PeopleSoft uses the following naming convention: FFF (or FF) TT NAME.

• FFF (or FF): Functional Area Code (see Functional Area Codes for more information).

• TT: Type of Supporting Element (see List Element Type Codes [PIN_TYPE] for more information).

• NAME (or NAME NAME): An indication of what the element does or is for. (The number of NAME components may vary).

For example, in the garnishment variable DED VR UN ERN ANN, the DED stands for deductions, VR stands for variable, UN stands for union, ERN stands for earning and ANN stands for annual. The element's 30 character (maximum) description (DESCR), Union Annual Earnings Amount in the example, provides a fuller description of what the element does or is for.

Primary Elements

Primary elements, such as earnings, deductions, absence take, and absence entitlement elements often do not contain functional area codes or element type codes in their names. This is because primary elements have names, based on familiar New Zealand terms, that identify their function and element type without the use of additional codes. For example, the name of the earning element ACC MAKEUP clearly identifies this element as an earning, and more specifically, as the familiar Accident Compensation Makeup Payment.

Additional Clues to the Use of Elements

Many New Zealand elements contain abbreviations that provide additional information about their purpose (beyond what the functional area codes and element type codes provide). For example, consider the duration element LVE FM AVG RTE. The functional area code LVE indicates that this element is used for leave rules and the element type code FM identifies it as a formula element. The abbreviation AVG RTE indicates that the formula is used to calculate the average rate. As you become more familiar with the payroll rules created for New Zealand, these abbreviations will help you to further identify and understand the role played by each element.

The following table lists the most common abbreviations used in the names of New Zealand elements.

Component Names (Suffixes)

In Global Payroll for New Zealand, suffixes are used to name the components of earning and deduction elements. For example, when you create an earning or deduction element in Global Payroll, you define the components that make up the element, such as base, rate, unit, and percentage. 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 element's name.

For example, let's say you define the earning element named EARN1 with the following calculation rule:

EARN1 = Rate x 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 New Zealand, all suffixes fall into one of the following types:

• Separator.

• Earnings and Deductions and Absence Entitlement component suffixes.

• Earnings and Deductions and Absence Entitlement accumulator suffixes.

• Deduction arrears component suffixes.

• Deduction arrears accumulator suffixes.

• Recipient Suffixes.

Note. To view the suffixes used for New Zealand, navigate toSet Up HRMS, Product Related, Global Payroll & Absence Mgmt, System Settings, Element Suffixes.

See Defining Suffixes.

Functional Area Codes

The following table contains the functional area codes used in the names of New Zealand elements.

Element Type Codes (PIN_TYPE)

Many element types, particularly supporting elements, are identified by the type code in their name. For example, the FM in LVE FM MAT LEAVE identifies the element as a formula.

You can see all the element types in the search page when you navigate to Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, System Settings, Element Types. Because not all element types are delivered for New Zealand, not all of these codes appear in the names of New Zealand elements.

Archiving Data for Global Payroll for New Zealand

PeopleSoft Enterprise Global Payroll for New Zealand delivers an archiving tool called the Data Archive Manager with a predefined archive object (GPNZ_RSLT_ARCHIVE) and an archive template (GPNZRSLT) that you can use to archive your payroll results data. The delivered archive template uses queries to select and store 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 Archiving Data.

Additional Archiving Considerations

The following PeopleSoft Enterprise Global Payroll for New Zealand result data is not included in the GPNZ_RSLT_ARCHIVE archive object because it is not associated with a calendar group ID:

If you want to archive this data, you can set up new archive objects, queries, and templates using the Data Archive Manager, or you can use your own archiving solution.

See Also

Enterprise PeopleTools PeopleBook: Data Management, Using PeopleSoft Data Archive Manager

Viewing Delivered Elements

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

See Viewing Delivered Elements.

See Also

Understanding How to View Delivered Elements