Payroll Statutory Deductions and Reporting

Payroll Statutory Deductions and Reporting Overview

Oracle Payroll enables you to calculate an employer's tax liability and deduct the appropriate sums from employee earnings. You can calculate employer and employee tax liabilities for all the taxes and statutory deductions that are applicable to your country. For example, this includes employer liability for state taxes such as State Unemployment Insurance and employee liability for federal, state and local taxes in the US, PAYE and NIC in the UK, PAYE, PRSI and USC in Ireland, Social Security, Unemployment and Complementary Pension in France, Standard and Special tax and Social Insurance in the Netherlands, and so on.

In each instance, Oracle Payroll enables you to enter details of the tax liability and process it at regular intervals.

Reporting on Payroll Statutory Deductions

See: Reports and Processes in Oracle HRMS, Oracle HRMS Configuring, Reporting, and System Administration Guide

Payroll Statutory Deductions and Reporting

Oracle Payroll allows you to process tax and insurance deductions for employers and employees, and helps you comply with the legislative requirements applying to your organization.

Is Oracle Payroll flexible enough to calculate different legislative taxes?

Yes. Oracle Payroll supports many country specific models of taxation, including the local, federal and state tax requirements of organizations operating in the US.

Is the entry of tax details flexible enough to meet my organizational needs?

Yes. You can calculate taxes for different types of employer to represent the diversity of your organization. You can also make retrospective adjustments to allow for overpayments and underpayments.

Is Oracle Payroll capable of processing the latest taxation updates?

Yes. The details of taxation policy and social security entitlements are constantly changing, but Oracle Payroll is always promptly updated so that your processing includes the most recent updates.

Can Oracle Payroll transmit PAYE information electronically? (UK only)

Yes. EDI allows two-way electronic transmission of documents between the Inland Revenue and employers. Oracle UK Payroll has developed a specified formatted file that, if used in conjunction with third party software, can be transmitted electronically to the Inland Revenue.

Can you record P11D details and submit an annual return? (UK Only)

You can use Oracle HR to update your records throughout the year to show all the Class 1A National Insurance contributions for which your organization is liable. You can make this information available to employees so that they can preview their NI liabilities. You can then generate a report to view the final details and you can submit the complete and validated records to the Inland Revenue to comply with all reporting requirements.

State and Federal Taxes

Tax on Income (ISR)

Tax on Income (ISR) is the federal income tax. Employers are obligated to withhold the tax from the employee and must pay this tax liability every month (in the month following the pay). The calculation of ISR requires many components and sequential steps in order to determine the proper amount of tax. The system automatically performs all calculation routines when you run the Payroll Run process or QuickPay.

When setting up your payroll, you must choose between using the delivered ISR Tax Rates Statutory tables (valid for the current tax reporting year) or defining your own tables. All tables are available through the User Defined Table Structure.

The ISR Tax Calculation process determines the proper amount of federal income tax to be withheld from the employee. Oracle Payroll automatically performs all of the calculation routines in the Payroll Run process.

See: Viewing Statutory Tables and Defining Custom Tax Tables

ISR Tax Calculation Methods

Oracle HRMS supports the following ISR tax calculation methods:

Method	Legislation Compliance
Regular Earnings	ISR Law Articles 113, 114, and 115
Non-Periodic	ISR Regulation Article 142
Amends	ISR Law Article 113

Note: The ISR Subject and Exempt portions of Earnings are calculated using Unit of Measure and Update (UMA).

Predefined Elements

The Mexico Tax predefined element triggers the ISR calculation. You must associate this element to each employee assignment by selecting the Standard Link option in the Elements window.

See: Defining Element Links, Oracle HRMS Compensation and Benefits Management Guide

The payroll run uses the following elements to support ISR calculation and to maintain ISR-specific balances:

• ISR Calculated

• ISR Subsidy for Employment

• ISR Subsidy for Employment Paid

• ISR Creditable Subsidy

• ISR Non Creditable Subsidy

• ISR Withheld

• ISR Amends

Use these balances when performing any tax balance adjustments.

ISR Balances

The following is a list of balances that support the ISR Tax:

Balance	Description
ISR Exempt	Fed by ISR Exempt input value on a non-employer liability earnings element.
ISR Tax to Charge	MEXICO_TAX fast formula continues to calculate and maintain this balance. It is fed by the ISR Tax to Charge input value on the ISR element.
ISR Subject	Fed by ISR Subject input value on a non-employer liability earnings element.
ISR Calculated	MEXICO_TAX fast formula continues to calculate and maintain this balance. It is fed by the ISR Calculated input value on the ISR element.
ISR Withheld	MEXICO_TAX fast formula continues to calculate and maintain this balance. It is fed by the ISR Withheld input value on the ISR element.
ISR Creditable Subsidy	MEXICO_TAX fast formula continues to calculate and maintain this balance. It is fed by the ISR Creditable Subsidy input value on the ISR element.
ISR Non Creditable Subsidy	MEXICO_TAX fast formula continues to calculate and maintain this balance. It is fed by the ISR Non Creditable Subsidy input value on the ISR element.
ISR Subsidy for Employment Paid	MEXICO_TAX fast formula continues to calculate and maintain this balance. It is fed by the Pay Value input value on the ISR Subsidy for Employment element.
ISR Subsidy for Employment	MEXICO_TAX fast formula continues to calculate and maintain this balance. It is fed by the ISR Subsidy for Employment input value on the ISR Subsidy for Employment element.
ISR Subject Non Periodic	MEXICO_TAX fast formula continues to calculate and maintain this balance. It is be fed by the ISR Subject Non Periodic input value on the ISR element.
ISR Withheld Non Periodic	MEXICO_TAX fast formula continues to calculate and maintain this balance. It is fed by the ISR Withheld Non Periodic input value on the ISR element.
ISR Withheld for Profit Sharing	MEXICO_TAX fast formula continues to calculate and maintain this balance. It is fed by the ISR Subject for Profit Sharing input value on the ISR element.
ISR Subject for Profit Sharing	MEXICO_TAX fast formula continues to calculate and maintain this balance. It is fed by the ISR Withheld for Profit Sharing input value on the ISR element.
<ELEMENT NAME> ISR Subject	Earnings fast formula calculates subject amount and returns it to ISR Subject input value of the element. Later, this input value maintains the element's subject balance.
<ELEMENT NAME> ISR Exempt	Earnings fast formula calculates exempt amount and returns it to ISR Exempt input value of the element. Later, this input value maintains the element's exempt balance.

Oracle Payroll maintains the following balances for reporting on Amends:

Balance	Description
Amends	Classification balance fed by all elements of classification Amends.
ISR Subject for Amends	The portion of Amends earnings subject to ISR tax.
ISR Withheld for Amends	The ISR tax withheld on Amends earnings.
Last Monthly Ordinary Salary	Monthly Salary used for estimating ISR tax on Amends.
Last Monthly Ordinary Salary Withheld	ISR tax on Last Monthly Ordinary Salary.

Subsidy for Employment Paid in Adjustment Run Types

The Monthly Tax Adjustment and Tax Adjustment Payroll Run Type processes adjust the ISR Subsidy for Employment Paid value. If an employee is eligible for subsidy in the first period of the month and is no longer eligible for subsidy due to increase in the salary, then the Subsidy for Employment Paid in the first payroll period will be reverted in the payroll period processed with the Adjustment Run Type. This will ensure that the ISR Subsidy for Employment Paid monthly or yearly value is less than the ISR Subsidy for Employment monthly or yearly value respectively.

ISR Withholdings

You can view an employee's ISR withholdings on the Statement of Earnings (SOE) and on the payslip. Additionally, you can further customize both of these documents to display other balances related to ISR calculation.

See: Setting Up Payslip Information and Generating Payslips and Setting Up Statement of Earnings Information

Statutory Tables

Oracle Payroll provides the following statutory tables. These tables store the rates used during ISR tax calculation.

• Subsidy for Employment Table

• ISR Tax Rate

• Subsidy Table

Oracle Payroll also provides Monthly statutory tables for the calculation of Amends and non-periodic payments (Article 142 earnings).

See: Viewing and Using Statutory Tables

User-Defined Tax Tables

Employers have a choice when calculating their ISR taxes. They can use the tax tables delivered with Oracle Payroll, or they can define and use their own.

See: Defining Custom Tax Tables

CFDI Payroll Payslip XML Extract

The ISR tax legislation establishes the employer obligation to generate the employee payroll payslips in an XML format to be able to get the CFDI (Certificado Fiscal Digital por Internet - Internet Digital Fiscal Certificate) from the government agency SAT.

You run the CFDI Payroll Payslip XML Extract to generate the XML payslip. See: Running the CFDI Payroll Payslip XML Extract

State Taxes

Oracle HRMS supports the computation of employer tax liabilities for states. The employee assignment's jurisdiction determines the state liability.

Mexico's states calculate their employer's liabilities with one of four methods:

• Flat rate

• No state tax

• Rate based on number of employees

• Rate based on subject earnings

The Employer State Tax Subject and Exempt amounts are calculated using Unit of Measure and Update (UMA).

Predefined Element

The Employer State Tax predefined element triggers the state tax calculation. Associate this element to each employee assignment, even if you have employees in states with no taxes or with special configuration requirements. To link this element to all assignments, select the Standard Link option in the Elements window.

See: Defining Element Links, Oracle HRMS Compensation and Benefits Management Guide

Flat Tax Rate

Some state tax rules have a provision for partially exempt earnings. Oracle Payroll performs the following steps in the Payroll Run or Quick Pay to identify earnings that are fully taxable, partially exempt, or fully exempt from the State Tax computations:

1. Determine the "Subject Basis". Oracle Payroll performs this by using a delivered defined balance. It uses the element's Secondary Classification to determine which earnings are subject or partially exempt from the employer state tax calculation.

2. If the assignment's jurisdiction falls in any of the 9 states that have partially subject earnings, Oracle Payroll calculates the portion of Secondary Classification earnings that are partially subject to Employer State Tax.

   The states with partially subject earnings are: Baja California Sur, Chihuahua, Durango, Michoacan, Nayarit, Oaxaca, Sinaloa, Tamaulipas, and Zacatecas.

3. Payroll adds the Subject Earnings to the Partial Subject Earnings to get the Total Subject Basis.

4. Payroll multiplies the rate with Total Subject Basis to determine the Tax Liability Amount.

Tax Rate Based on Number of Employees

Note: Currently no state follows the Tax Rate based on Number of Employees method.

Oracle provides the "Employee Head Count" user table to store the headcount values in order to determine the tax rate to be used. You must enter the headcount values if you have payroll reporting in these states in order to determine the correct tax rate.

For these states, you may need to perform an update of your organization definition before you run your payroll.

See: Legal Employer: Employee Head Count, Oracle HRMS Enterprise and Workforce Management Guide

You may also need to specify special tax rules for these states.

See: Legal Employer: State Tax Rules, Oracle HRMS Enterprise and Workforce Management Guide

Tax Rate Based on Subject Earnings

Some states base their tax rates on the total subject earnings for all employees within the Legal Employer. Because this information is not available until after the payroll run, Oracle Payroll cannot manage this type of liability.

Oracle Payroll provides the following solution for such states:

1. Oracle HRMS stores the rates in User Tables.

2. The payroll run maintains the Subject and Exempt balances. It determines the total liability by multiplying the total subject wages with the appropriate rate.

3. The Tax Remittance Report (TRR) reports the Total Liability and the Subject Wages for all states.

Oracle Payroll reports the subject and exempt wages for all states at the GRE level as well as the state and legal employer level.

For instructions on how to manage this tax method, see: Calculating State Tax Rate Based on Subject Earnings

Customizing State Tax Rates and Tables

While Oracle Payroll supports the most current state tax tables, you can override these values to suit your business needs.

For states with flat taxes, you can change the tax rates. For states with variable tax rates, you can define and use custom tax tables.

See: Overriding State Taxes

Viewing and Using Statutory ISR Tables

Oracle Payroll provides the following statutory tables. These tables store the rates used during ISR tax calculation.

• MX_ISR_SUBSIDY_FOR_EMPLOYMENT_TABLES: Contains all values for ISR Subsidy for Employment.

• MX_ISR_SUBSIDY_TABLES: Contains all values for the ISR tax subsidy.

• MX_ISR_TABLES: Contains the values for ISR tax rates.

To view the ISR statutory tables

1. Navigate to the Table Values window.

2. Execute a query with ISR% in the Table field.

   All tables associated with ISR display:

   ISR Law Article	Frequency	Table Name
   113	Weekly	ISR Rates_Week
   	Semi-Monthly	ISR Rates_SemiMonth
   	Monthly	ISR Rates_Month
   114	Weekly	ISR Subisdy_Week
   	Semi-Monthly	ISR Subisdy_SemiMonth
   	Monthly	ISR Subisdy_Month
   	Weekly	ISR Subsidy for Employment_Week
   115	Semi-Monthly	ISR Subsidy for Employment_SemiMonth
   	Monthly	ISR Subsidy for Employment_Month
   177	Annual	ISR Rates_Annual
   178	Annual	ISR Subsidy_Annual

See: Entering Table Values, Oracle HRMS Configuring, Reporting, and System Administration Guide

To assign tables to a payroll

When assigning tables to a payroll, you can use the seeded tables or you can create your own.

See: Defining Custom ISR Tax Tables

1. Navigate to the Further Information Payroll flex-fields.

2. Assign tables to each of the fields:

   • ISR Tax Rate

   • ISR Tax Subsidy

   • ISR Subsidy for Employment

   • ISR Tax Rate (Annual)

   • ISR Tax Subsidy (Annual)

   • ISR Subsidy for Employment (Annual)

   For bi-weekly payrolls, you must convert the weekly tables.

   Use the annual tables for the annual Tax Adjustment Run.

   Note: These tables use the User Defined Table Structure.

3. To calculate taxes for amends and non-periodic payments (Article 142 earnings), assign tables to the following fields:

   • ISR Tax Month Rate

   • ISR Tax Month Subsidy

   • ISR Month Subsidy for Employment

   If you leave these fields blank, Oracle Payroll uses the periodic tables you selected above to calculate the monthly earnings.

4. Click OK, and save your work.

Defining Custom ISR Tax Tables

Mexican employers have a choice when calculating their ISR taxes. They can use the tax tables delivered with Oracle Payroll, or they can define and use their own.

For details on defining and using custom tax tables, see: User-Defined Tables, , Oracle HRMS Configuring, Reporting, and System Administration GuideSetting Up User Tables, Columns and Rows, , Oracle HRMS Configuring, Reporting, and System Administration GuideEntering Table Values., Oracle HRMS Configuring, Reporting, and System Administration Guide

To define custom tax tables

1. Add the table names to the Look Up codes (used for translation).

2. Define the appropriate table structure, using the name defined in the Look Up codes (copy the original set up).

3. Define the appropriate table values.

4. Select your new table in the Payroll setup.

To add table names to the Look Up codes

1. Open the Application Utilities Lookups window.

2. In the Type field, query for MX_ISR_TABLES%.

   There are three delivered tables:

   • ISR Rates_Annual

   • ISR Rates_Month

   • ISR Rates_Week

3. Click New to clear these tables.

4. Specify the Code and Meaning for your new tables.

5. Select Enabled for each.

6. Save your work.

To define the table structure

1. Open the Table Structure window.

2. Query for the ISR Rates_% table.

   The seeded tables display.

   Selecting Columns for each table displays the following values:

   • Fixed Rate

   • Lower Bound

   • Marginal Rate

   Selecting Rows for each table displays the following values:

   • Sequence

   • Lower Bound

   • Upper Bound

3. DateTrack to the Effective Date for your new table.

4. Copy this original setup for the new table structure you want to define.

5. Specify a sequence number for each entry in the table.

6. Specify your lower bound and upper bound amounts.

7. Save your work.

To define the table values

1. Open the Table Values window.

2. Query for the new table name.

3. Specify the lower bound, upper bound, and values.

4. Save your work.

To apply your new tables to a payroll

1. Navigate to the Payroll Description window.

2. DateTrack to the effective date of your payroll.

3. Define your payroll, or execute a query to retrieve your existing payroll.

4. Click Further Information.

5. Attach the tables you defined.

   See: Further Payroll Information Window

Calculating State Tax Rate Based on Subject Earnings

Some states calculate their state taxes based on the total subject earnings for all employees within the legal employer. Therefore, you cannot calculate them until after the payroll run, and Oracle Payroll cannot automatically deduct this liability as part of the run. However, you can display such state tax deductions in post-payroll reports (such as the Tax Remittance Report).

For Oracle General Ledger users, Oracle Payroll does not automatically make your GL entries for such state employer taxes. You must make these entries manually.

To calculate employer tax liabilities

1. Run your payroll and calculate your subject wages.

2. Report the liability on the Tax Remittance Report.

3. Multiply the rate to calculate your liability.

4. Make your GL entries for these liabilities.

   Use the Tax Remittance Report to assist you.

Overriding State Taxes

Oracle HRMS for Mexico supports all of the current state tax tables. However, you can override them to suit your business needs.

Overriding Flat Rate State Taxes

If you have employees working in states with a flat tax rate, and you want to override that rate:

1. See Legal Employer: State Tax Rules, Oracle HRMS Enterprise and Workforce Management Guide for instructions on how to specify the new rate.

Overriding Variable Rate State Taxes and Defining Custom Tax Tables

If you have employees working in Chihuahua, Hidalgo, Oaxaca, and/or Zacatecas, you have a choice when calculating your variable rate state taxes. You can use the tax tables delivered with Oracle Payroll, or you can define and use your own.

To define custom state tax tables:

1. Add the table names to the Look Up codes (used for translation)

2. Define the appropriate table structure, using the name defined in the Look Up codes (copy the original set up)

3. Define the appropriate table values

4. Enable your new table in your organization, Oracle HRMS Enterprise and Workforce Management Guide

To add table names to the lookup codes:

1. Open the Application Utilities Lookups window.

2. In the Type field, query for MX_STATE_TAX_RATE_TABLE.

   There are three delivered tables:

   • STATE_TAX_RATES_CHIH

   • STATE_TAX_RATES_HGO

   • STATE_TAX_RATES_OAX

   • STATE_TAX_RATES_ZAC

3. Click New to clear these tables.

4. Specify the Code and Meaning for your new tables.

5. Select Enabled for each.

6. Save your work.

To define the table structure:

1. Open the Table Structure window.

2. Query for the STATE_TAX_RATES_% table.

   The seeded tables display.

   Selecting Columns for each table displays the following values:

   • Fixed Rate

   • Lower Bound

   • Marginal Rate

   Selecting Rows for each table displays the following values:

   • Sequence

   • Lower Bound

   • Upper Bound

3. Set your date to the effective date of your new table.

4. Copy this original setup for the new table structure you want to define.

5. Specify a sequence number for each entry in the table.

6. Specify your lower bound and upper bound amounts.

7. Save your work.

To define the table values:

1. Open the Table Values window.

2. Query for the new table name.

3. Specify the lower bound, upper bound, and values.

4. Save your work.

CFDI Payroll Payslip XML Interface

Setting Up Information for the CFDI Payroll Payslip XML Interface

The ISR tax legislation establishes the employer obligation to generate the employee payroll payslips in an XML format to be able to get the CFDI (Certificado Fiscal Digital por Internet - Internet Digital Fiscal Certificate) from the government agency SAT.

XML Template for the CFDI Payslip: To generate the XML output for the CFDI payslip, you can use the default Mexico Payslip XML Template or create your own. Use XML Publisher (XDO) to create a new template. The CFDI XML Payslip functionality provides the ability to add Custom XML code. For information on how to create your own XML template to generate the XML output for the CFDI payslip and also add custom XML to the existing XML data, refer to the My Oracle Support Document: Doc ID 1675858.1.

You run the CFDI Payroll Payslip XML Extract to generate the XML payslip.

See: Running the CFDI Payroll Payslip XML Extract

Before you run the process, you must complete the following steps to set up information for the CFDI Payroll Payslip XML Interface:

To set up information for the CFDI Payroll Payslip XML Interface

1. Enter the CFDI payslip code for earning and deduction elements

   Setting up the CFDI Payslip code for each element is mandatory as the XML payslip will be invalid if any element which is present in the XML Payslip has missing CFDI Payslip code. Customers cannot submit such XML Payslips to SAT. The payroll archive process will end in error if the CFDI payslip code is not set for any element which is processed in the current payroll run.

   Note: The CFDI payslip code setup is not required for Oracle delivered earnings and deductions elements, such as, ISR Withheld, Subsidy for Employment, Social Security Quota and Profit Sharing. The CFDI payslip code entry is required only for those custom elements that are newly defined. If you are using the Element Design Wizard to create custom elements for CFDI Payslip, then you must ensure that the following mandatory fields are entered:

   1. CFDI Payslip Code

   2. CFDI Overtime Hours Type: Although this field is available for all elements with the Calculation Rule Hours X Rate in the Element Design Wizard page, use this field only for Supplemental Earnings with the secondary classification Overtime or Other Overtime. This field is also available in the element Further Information window.

   If the payroll administrator finds that the Further Element Information window is not enabled for existing elements, then the Generic Upgrade Mechanism process must be run with Mexico: Upgrade Element Information Category as the parameter name.

   After the Further Element Information window is enabled, follow these steps to enter the CFDI Payslip code information:

   1. Navigate to the Element window.

   2. Search for the appropriate element.

   3. Click Further Information.

   4. Enter the CFDI Payslip code.

2. Specify the following fields in the application to capture details required for reporting in the CFDI Payslip:

   1. CFDI Fiscal Regime and CFDI PAC Confirmation Key: These fields are available in the Legal Employer organization classification, Tax Registration window.

   2. SS Work Risk Classification: This field is available in the GRE / Legal Entity organization classification, Social Security Details window.

   3. CFDI Contract Type, CFDI Work Schedule Type, and CFDI Regime Type: These fields are available in the Statutory Information tab of the Assignment window.

3. Complete steps to adjust earnings. The CFDI payslip does not allow negative earning amounts. However, if you use the same earning element to adjust an overpayment, by entering the negative adjustment amount as an input value, then you can use any one of the following methods to adjust earnings:

   1. Create and setup deduction elements assigning the appropriate "<Earning Code> Adjustment <Earning Description>" deduction codes.

   2. Process earnings with negative values. These earnings will be reported as positive deductions in the CFDI payslip, with the appropriate "<Earning Code> Adjustment <Earning Description>" deduction code. Note that if you use this method, then you must configure the element formula correctly to support negative values. Negative values and incorrect element setup might impact State tax and Integrated Daily Wage calculations.

4. Define the CFDI Outsourcing Employer Information extra information type (EIT) at an employee's assignment level for multiple outsourcing employers. When an employer outsources an HR professional, the Employer RFC and the Time Percentage information of the outsourcee (an organization that provides the outsourcing services) must be included in the CFDI Payslip. The Payroll Archiver process archives the information entered in the CFDI Outsourcing Employer Information EIT to report in the CFDI Payslip.

   To define the CFDI Outsourcing Employer EIT, complete the following steps:

   1. Enable the CFDI Outsourcing Employer Information EIT for a responsibility using the Information Types Security window. For more information, see Setting Up Extra Information Types For a Responsibility, Oracle HRMS Configuring, Reporting, and System Administration Guide.

   2. Define the CFDI Outsourcing Employer EIT fields:

      1. Navigate to the People window.

      2. Search for the employee for whom you want to record the EIT information.

      3. Click Assignment.

      4. Click Others.

      5. Select Extra Information.

      6. Select CFDI Outsourcing Employer Information.

      7. Specify values in the Employer RFC and Time Percentage fields.

5. Set up balances for the CFDI Payslip.

   • CFDI Paid Days

     The Assignment Run (_ASG_RUN) value of the CFDI Paid Days balance is used for reporting the actual number of paid days to an employee in the CFDI Payslip. This balance is delivered without any feeds. Therefore, you must add the feeds required for this balance. When the CFDI Paid Days balance is set up, the application derives the Number of Paid Days to the employee using the following rules:

     1. If the CFDI Paid Days balance is greater than zero, then the Number of Paid Days is considered the same as the CFDI Paid Days.

     2. If the CFDI Paid Days balance is less than or equal to zero:

        1. If both Social Security Quota and Profit Sharing elements are processed in the same run, then the Number of Paid Days is considered as one.

        2. If the Social Security Quota element is processed and the Profit Sharing element is not processed and the Days Basis of Quotation 1 balance is greater than zero, then the Number of Paid Days is considered as the Days Basis of Quotation one balance value.

        3. If the Profit Sharing element is processed and the Social Security Quota element is not processed and the Eligible Worked Days input value of the Profit Sharing element is greater than zero, then the Number of Paid Days is considered as the Profit Sharing Eligible Worked Days value.

        4. For all other cases, Number of Paid Days is considered as one.

   • CFDI ISR Tax Credit Remainder

     Set up this balance to report the tax remainder details in the CFDI payslip to report the year-to-date (YTD) value of this balance in the CFDI payslip.

     This balance is delivered without any feeds and therefore you must add the feeds required for this balance. The following example explains how the balance is processed for the current year 2017. In this example, the Format 37 Current Fiscal Year Arrears yearly balance value for the Year 2016 is 1000.

     • In January 2017, 300 is refunded to an employee using an Earnings element with the CFDI Payslip Other Payment Code "004 - Application of balance in favor employee by annual comp". Therefore, the CFDI ISR Tax Credit Remainder Yearly balance will reflect the value of 700 in Jan 2017 using the following calculation: Format 37 Current Fiscal Year Arrears for Previous Year – Pay Value of Element used to refund the arrears = 1000 - 300.

     • In February 2017, 200 is refunded to an employee. The CFDI ISR Tax Credit Remainder Yearly balance will reflect the value of 500 in Feb 2017, that is, 1000 – (300 + 200)).

     • In March 2017, 500 is refunded to an employee. Therefore, the CFDI ISR Tax Credit Remainder Yearly balance reflects the value of 0 in March 2017, that is, 1000 – (300 + 200 + 500)).

6. Enter the disability registration ID for applicable employees. The Disability Registration ID field is available only for Earnings and Supplemental Earnings element in the Further Entry Information window.

   To report disability subsidy payment for an applicable employee in the CFDI payslip:

   1. Navigate to the People window.

   2. Query the required employee.

   3. Click Assignment.

   4. Click Entries and then click Entry Values.

   5. For either an earnings element or a supplemental earnings element, click Further Entry Information.

   6. Select an appropriate value in the Disability Registration ID field.

7. Enter the appropriate CURP NID for foreign workers using the People window. For foreign workers with no CURP, use the following CURP.

   • Male: XEXX010101HNEXXXA4

   • Female: XEXX010101MNEXXXA

8. Enter the appropriate RFC NID for employees. If an employee is deceased, then the RFC NID must be XAXX010101000.

9. Run the required processes before running the CFDI Payslip XML Interface program:

   The XML payslip will be generated for an assignment only when all the following processes are run:

   • Payroll

   • Prepayments

   • Check Writer/Direct Deposit

   • Payroll Archive

   Ensure that these processes are run before running the CFDI Payroll Payslip XML Extract' concurrent program.

   Important: Before running this report, ensure that the Run XML Publisher for Report Generation (RUN_XDO) and Print Files (PRINT_FILE) action parameters are set to Y. These action parameters are available in the Action Parameters window. For more information about the action parameters, refer to the Oracle HRMS Implementation Guide.

Running the CFDI Payroll Payslip XML Extract

The ISR tax legislation establishes the employer obligation to generate the employee payroll payslips in XML format to be able to get the CFDI (Certificado Fiscal Digital por Internet - Internet Digital Fiscal Certificate) from the government agency SAT.

Before you run this process, ensure that you have completed the setup steps using the Setting up Information for CFDI Payroll Payslip XML Interfacetopic.

Oracle Payroll for Mexico enables you to generate the payslips in an XML format using the CFDI Payroll Payslip XML Extract process.

You can run the process from the Submit Request window.

To run the CFDI Payroll Payslip XML Extract process

1. Select CFDI Payroll Payslip XML Extract as the name.

2. The concurrent program CFDI Payroll Payslip XML Interface has the following parameters:

   Parameter Name	Description
   Payroll	Select the payroll for which this process needs to be run.
   Consolidation Set	Select the consolidation set for which this process needs to be run.
   Start Date End Date	Enter the start and end dates the process will use to determine the payroll actions to be picked. The payroll actions processed within the given period will only be picked.
   Assignment Set	Select the assignment set to select the set of employees.
   CFDI Payslip Style	Select the template to be used to generate the XML output. You can use the default template: 'Mexico Payslip XML Template' or create your own. Use XML Publisher (XDO) to create a new template. For information on how to create your own XML template to generate the XML output for the CFDI payslip, refer to the My Oracle Support Document: Doc ID 1675858.1
   CFDI Payroll Type	Select the payroll type that you want this process to use when generating the CFDI payslip. The default value is Regular Payroll.
   SNCF Source of the resource	Specify the SNCF source of the resource that you want to be reported in the CFDI payslip.
   SNCF Own resource amount	Enter the amount corresponding to own resource, when the source of income is of type Mixed Income. This parameter gets enabled and is mandatory only if the parameter SNCF Source of the resource chosen is Mixed Income (IM).

Concurrent Programs

The CFDI Payroll Payslip XML Interface program internally triggers two separate concurrent programs: XML Report Publisher and Generate MX XML Payslip File.

Note: The Generate MX XML Payslip Files concurrent program which gets triggered by the CFDI Payroll Payslip XML Extract process gets completed in error, if the action parameter Run XML Publisher for Report Generation (RUN_XDO) is set to N. In the Action Parameters window, set the action parameter RUN_XDO to Y for the Generate MX XML Payslip Files process to get completed successfully.

Program	Description
XML Report Publisher	The program XML Report Publisher displays the CFDI XML Payslip with all the employees. The root tag of the XML file is <PAYSLIP_REPORT> and each employee payslip is divided into sub root tag <cfdi:Comprobante>. Note that the name of this request changes to CFDI Payroll Payslip XML Extract (XML Report Publisher) upon completion.
Generate MX XML Payslip File	XML payslip outputs are stored in a database directory defined for PL/SQL file I/O. See My Oracle Support Knowledge Document 2525754.1, Using UTL_FILE_DIR or Database Directories for PL/SQL File I/O in Oracle E-Business Suite Releases 12.1 and 12.2. The name of the file written to file system is in the following format: R<Request_id>A<assignment_id>E<Employee_number>D<Payroll_End_Date_ in_MMDDYYYY>_<Payroll_Name_10_characters>.xml Example: If Request id=12100, Assignment_action_id=91000, Employee number = 71, Payroll period end date = 15-JAN-2014 and payroll name = Quince_Payroll then the file name will be: R12100A91000E71D01152014_Quince_Pay.xml To know the details about the files and the directory in which the files are generated (utl_file) by this process, click the View Output button of this concurrent program. The output shows the utl_file directory where the payslips are generated along with the name of each payslip file and corresponding employee details. Note: Individual XML payslip outputs are stored in a database directory defined for PL/SQL file I/O. See My Oracle Support Knowledge Document 2525754.1, Using UTL_FILE_DIR or Database Directories for PL/SQL File I/O in Oracle E-Business Suite Releases 12.1 and 12.2. SELECT value FROM v$parameter WHERE name = utl_file_dir; See My Oracle Support Knowledge Document 2525754.1, Using UTL_FILE_DIR or Database Directories for PL/SQL File I/O in Oracle E-Business Suite Releases 12.1 and 12.2.

Viewing Output Files

You can view the various output files generated by the CFDI Payroll Payslip XML Extract program and its related requests: XML Report Publisher and Generate MX XML Payslip Files.

To view the assignment's CFDI payslip, navigate to the Employee Assignment Processes window and query for an employee. Select the CFDI Payslip Process and view the output. The View Output shows two XML files: one the internal XML file (base XML) and other the CFDI payslip for the assignment.

If there are any CFDI validation code violations, then the Payroll Archiver process generates information messages. You can view these messages using the Employee Assignment Processes window.

Individual Payslip Generation

The CFDI Payroll Payslip XML Extract generates XML payslips for each employee. You can view an employee's payslip in the View Assignment Process Results window.

Consolidated Payslip Generation

To view the consolidated CFDI payslip for all the assignments, navigate to the Requests window and view the output for CFDI Payroll Payslip XML Extract.

Rerun the process

The program uses the interlock mechanism and does not allow administrators to rerun the process for the same set of employees.

To rerun the process, you must rollback the process for the same set of employees:

1. Navigate to the Submit Request window.

2. Select Rollback MX Payroll Process.

3. Select the Magnetic Report process type.

4. Select MX_XML_PAYSLIP as the payroll process.

5. Submit the process.

Integrated Daily Wage

Integrated Daily Wage Overview

The Integrated Daily Wage (IDW) is a calculation of the fixed and variable earnings of every working day for an employee during a given period. The Social Security agencies use IDW to track activity on new hires and salary changes and calculate employee/employer Social Security contributions.

IDW is required for Social Security Affiliation reporting and calculation of the INFONAVIT Housing Fund. The IDW value is derived data used in the statutory reports and must appear in all DISPMAG reports.

Variable Rate Calculation

The variable portion is based on:

• Commission

• Overtime

• Any other variable earnings

You calculate the variable portion by adding all variable earnings paid during the 2 previous months and dividing them by the number of days of wage for the same months.

Employees with variable IDW changes are reported to the Social Security Institute at the end of a bi-monthly reporting period (end of February, April, June, August, October, and December).

Oracle maintains the variable earnings using the "IDW Variable Basis Eligible Comp" balance and the days of wage using the "Days Basis of Quotation 1". balance.

Fixed Rate Calculation

There are two methods for calculating the fixed portion of the IDW: Earnings method and Factor Table method.

Earnings Method

This method derives the IDW from the earnings as you have defined them in HRMS:

• Salary

• Vacation Premium

• Christmas Bonus

In this method, you calculate the fixed portion by adding all fixed earnings for the year and dividing by either 364 (for weekly/biweekly payrolls) or 360 (for semi-monthly and monthly payrolls). You can derive this value independent of a payroll run.

When configuring the legal employer, you specify the average days per month/average days per year for your organization. Oracle Payroll uses this override for IDW calculations.

See: Legal Employer: Entering Tax Registration Information, Oracle HRMS Enterprise and Workforce Management Guide

Factor Table Method

This method derives the IDW based on a factor. This factor is calculated based on a user table that defines an employee's days of Christmas bonus, vacation days, other earnings, and IDW factor based on their years of seniority. You then calculate the fixed portion by multiplying the employee's daily salary by the IDW factor.

Employee Seniority

Some benefits depend on Employee Seniority therefore every time the Employee's benefits change the IDW will change too. There are three start dates in the Person form that can be used for seniority purposes:

Start Date	Description
Original Hire Date	Hire date when employee started working for the company.
Date First Hired	An example of when this field is used is when a company is acquired or merged with another company. The employee's Hire Date before the merge took place is entered here.
Adjusted Service Date	Used when an employee leaves a company for a period of time and returns to same company. If entered, the "Adjust Service Date" will be used to determine seniority. If no value is entered then "Date First Hired" will be used. If the "Date First Hired" field does not contain a value, then the value from the "Original Hire Date" field will be used.

PAY: No of decimal places for Seniority (Two/Five) Profile Option

If the "PAY: No of decimal places for Seniority (Two/Five)" profile option is set to Five, then the Years of Seniority: From and To column in the IDW table must be set to the Five digit precision such as 1.00001 - 2, 2.00001 - 3 and so on instead of 1.01 - 2, 2.01 – 3.

Social Security Quota Proration on Employee Anniversary

The Integrated Daily Wage (IDW) fixed portion varies each time the seniority changes. The seniority may change anytime in the pay period and more often it varies in the mid of a pay period. Hence IDW also changes in the mid of pay period.

The Social Security Quota which is calculated on the basis of IDW will be prorated based on the change in IDW value.

For example, in a pay period from 1st January to 31st January, if seniority changes on 10th Jan, IDW also changes on same day. Hence PERIOD1 IDW will be IDW till 10th Jan and PERIOD2 IDW will be from 11th till 31st January. The normalized IDW will be calculated as:

IDW_NORMALIZED = ((PERIOD1_DAYS * PERIOD1_IDW) + (PERIOD2_DAYS * PERIOD2_IDW)) / (PERIOD1_DAYS + PERIOD2_DAYS)

The calculated normalized IDW value can be verified from the UI 'Social Security Quota' run result 'FIXED_IDW_NORMALIZED' .

Social Security Quota for Salary and Seniority Changes

When the application calculates the social security quota, it considers both salary and seniority changes in the same payroll period. The SOCIAL_SECURITY_QUOTA formula determines the Fixed IDW prior to the Anniversary Date, using the formula function GETIDW_BYDATE. The SOCIAL_SECURITY_QUOTA formula is used to calculate Normalized IDW.

Element Design Wizard

The Element Design Wizard provides required fields in support of IDW. Populating these fields will satisfy IDW requirements.

The Element Design Wizard is the recommended method for IDW and element setup.

See: Defining Earnings and Deductions Elements, Oracle HRMS Compensation and Benefits Management Guide

IDW Element

Oracle Payroll uses the Integrated Daily Wage element to calculate IDW in the payroll run. You should standard link this element to the assignments that need to compute IDW and Social Security imputations.

The Integrated Daily Wage element creates run results for fixed, variable, and combined salaries.

The Element Fast Formula is called: INTEGRATED_DAILY_WAGE.

Balances

Eligible compensation for Variable IDW is based on the Secondary Classification element.

The "IDW Variable Bases Eligible Comp" balance is composed of feeds from the following Secondary Classifications:

• Earnings: Eligible compensation for IDW (Variable basis)

• Supplemental Earnings: Eligible compensation for IDW (Variable basis)

• Imputed Earnings: Eligible compensation for IDW (Variable basis)

Tables

The PQP_CONTRACT_TYPES user defined table is used internally in the IDW Calculation.

The following columns in the table will be used:

• Annual Hours

  This is the number of hours worked per year under this contract. It is used to convert rates to hourly rates.

• Days Divisor

  This is the number of days worked in a year under this contract. It is used to convert rates to daily rates.

• Weekly Payroll Divisor

• Monthly Payroll Divisor

The last two columns are the number of periods per year used to convert a periodic value into an annual value when you select "Periodic - Payroll Frequency" as the time dimension in the element definition and the employee has a payroll frequency of Calendar Month/Week respectively.

The PQP_CONTRACT_TYPES table contains two delivered rows:

• WEEKLY PAYROLL: Used for Weekly/Bi-Weekly payroll IDW CALCULATION

• MONTHLY PAYROLL: Used for Monthly/Semi-monthly payroll IDW CALCULATION

Oracle HRMS generates a row for each GRE or Legal Employer that has overrides specified for number of days in year/month. This row is generated, if required, during IDW derivation. The row is named "IDW CALCULATION (GRE: organization ID)" or "IDW CALCULATION (LE: organization ID)," where organization id refers to the organization_id of the GRE or the Legal Employer organization.

Lookups

The MX_IDW_FACTOR_TABLES Lookup Type has been delivered to support the "Factor Table Method" to compute the IDW fixed portion.

Functions

A new function called GET_IDW is delivered, with various modes of functioning. Each mode is unique to the IDW calculation needs. Get_IDW is used in DISPMAG reporting and Social Security Quota calculation. The function is called in the following modes:

• REPORT: For New Hire Report/Social Security Quota

• BIMONTH_REPORT: For Bimonthly Reporting

• CALC: For IDW Calculation in the payroll run

IDW Audit Report

The IDW Audit Report provides an overview of the different components used in determining the IDW values in each payroll run for all employees under a legal employer.

See: Running the IDW Audit Report

Setting Up IDW

Whenever you create an element through the Element Design Wizard, you are setting up your installation for IDW calculation and reporting. The Element Design Wizard includes required parameters that configures those elements for IDW.

Configure the Integrated Daily Wage element

The Integrated Daily Wage predefined element calculates the IDW within the payroll run, and you must associate this element to each employee assignment by selecting the Standard Link option in the Elements window.

See: Defining Element Links, Oracle HRMS Compensation and Benefits Management Guide

IDW is the integration of the employee daily earnings; therefore, its value depends on how you configured the earnings. Some earnings parameters and sub-classifications directly affect the IDW calculation:

• Earnings:Eligible Compensation for Amends (Fixed Basis)

• Earnings:Eligible Compensation for Amends (Variable Basis)

• Earnings:Eligible Compensation for IDW (Variable Basis)

• Fixed Earnings

• Imputed Earnings:Eligible Compensation for Amends (Fixed Basis)

• Imputed Earnings:Eligible Compensation for Amends (Variable Basis)

• Imputed Earnings:Eligible Compensation for IDW (Variable Basis)

• Supplemental Earnings:Eligible Compensation for Amends (Fixed Basis)

• Supplemental Earnings:Eligible Compensation for Amends (Variable Basis)

• Supplemental Earnings:Eligible Compensation for IDW (Variable Basis)

• Variable Earnings

Other sub-classifications may be used to configure earnings to apply the Social Security exemption rules correctly.

See: Survey of the Classifications, Oracle HRMS Compensation and Benefits Management Guide

Use Fast Formula functionality to compute the IDW exemption rules.

Choose a fixed earnings IDW calculation method

Fixed earnings IDW has two calculation methods: Earnings and Factor Table.

Perform the following steps to specify which method you are using at the GRE level.

Note: Changing the calculation method for an existing GRE requires some additional steps.

See: Changing Your IDW Calculation Method

1. In the Organization window, query for the GRE you want to configure.

2. Select GRE/Legal Entity, and click Others.

3. Select Social Security Details, and click OK.

4. Click in the field of the Additional Organization Information window to open the Social Security Details window.

5. Choose your IDW calculation method.

6. Save your work.

Configure each earning that contributes to the IDW

1. Edit the appropriate Earnings elements.

2. Assign the appropriate sub-classifications.

3. Set up the Element IDW attributes.

4. Link the IDW element to those assignments with Social Security imputations.

Set up fixed earnings IDW, Factor Table method

If you have configured one or more GREs to use the Factor Table method, you must perform the following setup steps:

1. Determine which employees or employee types (based on compensation plans) require IDW calculation.

2. Create one or more multiple user tables to reflect your different compensation plans (such as different collective agreements). Use the IDW Factor Table template as a guide.

   You can create as many tables as your business needs require.

   Note: Do not change the column names from their defaults.

3. Populate these tables with values appropriate to your employee categories and seniority policies.

   Be sure your seniority ranges include all possible seniority values.

   A multiple user table may look like the following:

   Years of Seniority: From	To	Wage Days (A)	Christmas Bonus Days (B)	Vacation Days (C)	Vacation Premium Days (D)	Other Earnings (E)	Total Days (F=A+B+D+E)	Factor (G=F/A)
   0.00	1.00	360	15	6	1.50	0	376.50	1.045833333
   1.01	2.00	360	15	8	2.00	0	377.00	1.047222222
   2.01	3.00	360	15	10	2.50	0	377.50	1.048611111
   3.01	8.00	360	15	12	3.00	0	378.00	1.050000000
   8.01	13	360	15	14	3.50	0	378.50	1.051388889
   13.01	18	360	15	16	4.00	0	379.00	1.052777778
   18.01	23	360	1	18	4.50	0	379.50	1.054166667
   23.01	Onwards	360	15	20	5.00	0	380.00	1.055555556

4. Add the table names to the Lookups under the MX_IDW_FACTOR_TABLES Lookup Type.

5. Assign your IDW Factor Table name to the Integrated Daily Wage element, using one of the following methods:

   • At the individual employee level, use the Element Entries window to assign the element.

   • Select the Standard Link option in the Elements window to automatically assign this element to all new employees.

   • Use a Benefit Plan to assign the element to multiple employees based on assignment criteria (such as Job, Grade, Position, and People group segments).

   • Use the Batch Element Entry to assign the element to multiple employees.

   This triggers an IDW change event, and HRMS will archive the affected employee records the next time you run the Social Security Archiver.

   Note: Oracle HR-only customers must use this element if they want to use the Factor Table method of calculation.

6. For each employee in the affected GRE, you must specify one or more hire dates. Oracle HRMS uses these dates to determine length of service for seniority calculation:

   • Adjusted Service Date: Used when the employee worked for the company for a period of time, left for a while, and then returned. This is the first value HRMS checks.

   • Date First Hired: If the company acquired or merged with another company, use this field to reflect the hire date of new employees who have been working prior to the merge. HRMS uses this value if Adjusted Service Date is empty.

   • Original Hire Date: Date when current employment has begun. HRMS uses this value if Date First Hired is empty.

Using the Element window to define elements for IDW calculation

The Element Design Wizard is the recommended method for creating Earnings and Deductions elements. However, you can still use the Element window to define your elements.

If you are creating elements through the Elements window, you must specify the following parameters through the Element Attribution and Rate Types Historic Rates EITs:

Historic Rates EIT	Parameters
Historic Rate - Element Attribution	Time Dimension Pay Source Value Qualifier % or Factor % of Factor Value
Historic Rate - Rate Types	Type Rate Type Name

See: Defining an Element, Oracle HRMS Compensation and Benefits Management Guide and Historic Rates Extra Information Types, Oracle HRMS Compensation and Benefits Management Guide

Changing Your IDW Calculation Method

For existing organizations (where you have performed at least one payroll run), perform the following steps to change its IDW calculation method:

Changing Between Factor Table and Earnings Methods

1. In the Organization window, query for the GRE you want to configure.

2. Select GRE/Legal Entity, and click Others.

3. Select Social Security Details, and click OK.

4. Click in the field of the Additional Organization Information window to open the Social Security Details window.

5. Choose your new IDW calculation method.

6. Save your work.

7. If you are switching to the Factor Table method, follow the steps described in "Set up fixed earnings IDW, Factor Table method," Setting Up IDW.

   If you are switching to the Earnings method, remove any IDW Factor Table names from the Integrated Daily Wage element.

8. Save your work.

These steps trigger an IDW change event, and HRMS will archive the affected employee records the next time you run the Social Security Archiver.

Changing Factor Tables

Oracle HRMS and the Social Security Archiver cannot detect changes made to an existing IDW factor table. If you need to make changes to an existing factor table, you must delete the original table and create a new one.

See: Setting Up IDW

Running the IDW Audit Report

This report helps to audit how the IDW is computed to display the earnings which contribute to the Fixed and Variable portions.

The IDW Audit Report computes the IDW CAP value using Unit of Measure and Update (UMA) as the index.

You can run the report from the Submit Request window.

To run the IDW Audit Report

1. Select IDW Audit Report as the name.

2. The concurrent program IDW Audit Report has the following parameters:

   Parameter Name	Description
   Start Pay Date End Pay Date	Enter the start and end pay dates for which you want to run the report. The payroll actions processed within the given period will only be picked.
   Legal Employer	Select the legal employer you want to report on.
   Government Reporting Entity	Select the GRE for which to run the report.
   Payroll	Select the payroll for which this report needs to be run.
   Consolidation set	Select the consolidation set for which this report needs to be run.
   Assignment Set	Select the assignment set to specify the set of employees.
   Employee	Select the employee for whom the report will be processed.
   Sort Option	Specify the sort order for the report.
   Include Earnings Contribution	This parameter controls the display of Fixed and Variable Earnings Contribution sections of the report. If you want to view these details, then select Yes for this parameter.

Report Output

The IDW Audit Report presents the following sections:

Employee Details:

This section of the report displays the following details of an employee.

• Employee Name

• Assignment Number

• SS Employee Number

• Payroll Name

• Consolidation Set

• Hire Date

• Legal Employer

• GRE

• SS Employer Number

• IDW Calculation Method

• IDW CAP Value

IDW Details:

This section of the report displays the following details for each pay period.

• Period Start Date

• Period End Date

• Seniority (Years)

• Daily Wage: Note that the Daily Wage is computed based on those earnings with the "Base Pay" element setup.

• IDW Factor Value

• Previous Bi-Month Variable Earnings

• Previous Bi-Month Days Quoted

• Current Bi-Month Variable Earnings

• Current Bi-Month Days Quoted

• Variable IDW Input Value

• IDW Factor Table

• Variable IDW Expiration Date

• Variable IDW

• Fixed IDW

• Mixed IDW

• IDW Cap Indicator

Fixed Earnings Contribution:

This section of the report displays individual elements that contribute to the Fixed IDW in a period.

• Element Name

• Time Dimension of Element

• Periodic Amount of Element

• Daily Rate of Element

• Sum of Periodic Amount of all Elements

• Sum of Daily Rate of all Elements

Note: If a salary element is set up with Base Pay as the rate type in the Extra Element Info DDF, then the Fixed Earnings Contribution section displays the value "Y" for base pay contribution. Otherwise, "N."

Variable Earnings Contribution:

This section of the report displays individual elements that contribute to the Variable IDW in a period.

• Element Name

• Periodic Amount of Element

• Sum of Periodic Amount of all Elements

The Include Earnings Contribution parameter in the concurrent program controls the display of Fixed and Variable Earnings Contribution sections of the report.

Social Security Contributions

Social Security Tax Calculation

Social Security tax withholding is based on the employee's IDW and has both an employee and employer percentage computation. It is obligatory for non-government employees. IMSS establishes the rules to administer and report the tax contributions. These premiums are remitted to IMSS every month as advance estimated payments, resolved on a bi-monthly basis. To comply with legislative requirements, Unit of Measure and Update (UMA) is used as the index to calculate social security components.

This tax consists of multiple insurance types:

• Disease and Maternity

• Benefits in Species (Fixed Quota)

• Benefits in Species (Additional Quota)

• Benefits in Cash

• Disability and Death

• Day-care Centers

• Work Risk Incident

• Pensionaries and Beneficiaries

• Retirement

• Suspension in age outpost and oldness

• INFONAVIT (Housing Fund)

See: GRE/Legal Entity: Entering Work Risk Premium, Oracle HRMS Enterprise and Workforce Management Guide

For the most current information on Social Security and INFONAVIT quota deduction percentages, see:

• IMSS website (http://www.imss.gob.mx)

• INFONAVIT website (http://www.infonavit.gob.mx)

For Oracle Payroll to calculate all standard types of Social Security deductions, you must associate this element to each employee assignment by selecting the Standard Link option in the Elements window.

See: Defining Element Links, Oracle HRMS Compensation and Benefits Management Guide

Tax Balances

Tax Balances

In accordance with the tax-related information entered in the Oracle HRMS database, the payroll run can build tax balances for each of the following tax types (EE = employee tax, ER = employer tax):

Federal Taxes

ISR Calculated

ISR Subsidy for Employment

ISR Subsidy for Employment Paid

ISR Creditable Subsidy

ISR Exempt

ISR Non Creditable Subsidy

ISR Subject

ISR Withheld

ISR Tax to Charge

CFDI ISR Tax Credit Remainder

CFDI Paid Days

State Taxes

Employer State Tax Exempt

Employer State Tax Subject

Employer State Tax Withheld

Social Security Taxes

Additional Quota EE

Additional Quota EE Subject

Additional Quota EE Taxable

Additional Quota ER

Additional Quota ER Subject

Additional Quota ER Taxable

Benefits in Cash EE

Benefits in Cash EE Subject

Benefits in Cash EE Taxable

Benefits in Cash ER

Benefits in Cash ER Subject

Benefits in Cash ER Taxable

Benefits in Species EE

Benefits in Species EE Subject

Benefits in Species EE Taxable

Benefits in Species ER

Benefits in Species ER Subject

Benefits in Species ER Taxable

Day Care Centers EE

Day Care Centers EE Subject

Day Care Centers EE Taxable

Day Care Centers ER

Day Care Centers ER Subject

Day Care Centers ER Taxable

Disability and Death EE

Disability and Death EE Subject

Disability and Death EE Taxable

Disability and Death ER

Disability and Death ER Subject

Disability and Death ER Taxable

Disease and Maternity EE

Disease and Maternity EE Subject

Disease and Maternity EE Taxable

Disease and Maternity ER

Disease and Maternity ER Subject

Disease and Maternity ER Taxable

Fixed Quota EE

Fixed Quota EE Subject

Fixed Quota EE Taxable

Fixed Quota ER

Fixed Quota ER Subject

Fixed Quota ER Taxable

INFONAVIT EE

INFONAVIT EE Subject

INFONAVIT EE Taxable

INFONAVIT ER

INFONAVIT ER Subject

INFONAVIT ER Taxable

Pensioners Medical Expenses EE

Pensioners Medical Expenses EE Subject

Pensioners Medical Expenses EE Taxable

Pensioners Medical Expenses ER

Pensioners Medical Expenses ER Subject

Pensioners Medical Expenses ER Taxable

Retirement EE

Retirement EE Subject

Retirement EE Taxable

Retirement ER

Retirement ER Subject

Retirement ER Taxable

Separation due to Age EE

Separation due to Age EE Subject

Separation due to Age EE Taxable

Separation due to Age ER

Separation due to Age ER Subject

Separation due to Age ER Taxable

Social Security Quota EE

Social Security Quota EE Subject

Social Security Quota EE Taxable

Social Security Quota ER

Social Security Quota ER Subject

Social Security Quota ER Taxable

Work Risk Incident EE

Work Risk Incident EE Subject

Work Risk Incident EE Taxable

Work Risk Incident ER

Work Risk Incident ER Subject

Work Risk Incident ER Taxable

IDW

Normalized Fixed IDW

For these taxes, Oracle HRMS creates the balances in the following table for each employee assignment processed in the payroll run.

Balance	Definition
Gross Earnings	All earnings
Reduced Subject to Tax and Withholdable Earnings	Gross earnings subject to tax and withholdable
Employee Withheld	Amount withheld for the employee
Employer Liability	Liability of the GRE for Social Security

Note: When no rules exist for a particular tax type (such as when a state has no income tax or no employee liability for SUI or SDI, or when no city or county tax exists), the system builds no balances for the tax.

Tax Remittance Reporting

Tax Remittance Reporting

The Tax Remittance Report (TRR) provides summary-level information to reconcile the wage and tax amounts for a period. It provides proof of sufficient payment when an employer is remitting their tax payments to the various Mexican governmental agencies. It lists the wages the employer has paid during the time period and the taxes due based on those wages. Taxes reported are:

• Social Security quotas

• ISR and related wages

• All state-level balances

Note: For Queretaro (QRO) state, the Tax Remittance Report computes the exempt amount using Unit of Measure and Update (UMA) as the index.

Employers should run the TRR at least once a month. Submission of this report is not required. Use it to get the information you need to complete your tax remittance reports.

This report uses the Java-based XML Publisher product available within the Oracle E-Business Suite technology stack. This tool gives you the ability to produce PDF file output from this report and provides greater flexibility in report design. A template of the TRR report is provided in Rich Text Format (RTF) to facilitate customization.

Customizing the Tax Remittance Report for State Details

You must perform this customization at the balance level, where you specify the elements you want to appear in the State Details section of the report.

To customize the Tax Remittance report for State Details

Use the Balance Attributes to link the state.

1. Open the Balance window.

2. Perform a query to locate the balance you want to add to the report.

3. Click Attribute.

4. In the Attribute column, choose the appropriate state from the list of values (such as Tax Remittance for Durango).

5. In the Dimensions column, choose Assignment Within GRE Run.

6. Save your work.

Running the Tax Remittance Report

Run this report in the Submit Request window.

To run the Tax Remittance Report

1. Select Payroll Tax Remittance Report in the Name field.

2. Click on the parameters field if the Parameters window does not automatically open.

3. Specify the start and end dates of the earning period you are reporting.

4. Select your legal employer.

5. If you wish to generate report results for only a particular state, select the state.

6. If you wish to generate report results for only a particular GRE, select the GRE.

   Available options depend on if you selected a state and which state it is.

7. Indicate one or more tax payment(s) you want to report:

   • ISR tax

   • Social Security tax

   • State tax

   Note: You can report on state taxes from only one state at a time. If you want to report on multiple state taxes, you must run multiple reports.

8. Specify the time period for the tax payments you want to report on. You can choose to report on the current pay period, the current month's pay period, quarter to date, or the year to date.

9. Click OK and then Submit.

   Oracle Payroll generates the report and produces output you can view as a PDF.

Profit Sharing (PTU)

PTU Calculation

Federal labor law requires that a fixed percentage of a company's annual profit be shared amongst employees. This profit sharing program is called "Employee Participation in Profits" (PTU). The National Profit Sharing Commission establishes the percentage of profit to be shared. The amount is distributed amongst all eligible employees based on salary and number of days worked by the employee. You must distribute the employees' share in the profits within 60 days of reporting your Annual Tax Declaration (March 30th).

When it is time to calculate employee PTU earnings, the payroll administrator runs the Profit Sharing Process. This process performs the calculations to determine each employee's profit sharing income and stores the results in a batch file. Once you transfer the batch file, the earnings are included in a standard payroll run.

Before running this process, you must have specified values for the required columns in the PTU Factors fixed user table, and all eligible earnings elements must feed the appropriate balances.

See: Legal Employer: PTU Factors, Oracle HRMS Enterprise and Workforce Management Guide and Assigning PTU Eligibility to Earnings, Oracle HRMS Compensation and Benefits Management Guide

Profit Sharing Process

Running the Profit Sharing Process

When it is time to calculate your employees' PTU earnings, run the Profit Sharing Process. For the given reporting year, this process evaluates the following criteria and determines the PTU earnings due to each employee:

• Amount to share (typically somewhere between 8-10% of the profits, as defined by the National Profit Sharing Commission)

• Salary of the employee or 120% of the salary of the highest-paid union employee, whichever is lower

• Number of days worked by the employee

• Number of days worked by all employees

This process calculates each employee's share in the company's profit and creates a Batch Element Entry (BEE) batch for the Profit Sharing 2021 and Profit Sharing 2021 Info elements to store the results of the calculation. Use this batch to create element entries for the Profit Sharing 2021 and Profit Sharing 2021 Info elements. You can also download the batch to a spreadsheet for review and make modifications to the calculated values before creating element entries for employees, if needed.

By default, this process includes all employees who have been processed in a payroll run, Quickpay, balance initialization, or balance adjustment process in the year.

Run this process from the Submit Request window.

1. Select Profit Sharing Process in the Name field.

2. Click on the parameters field if the Parameters window does not automatically open.

3. Specify the year for which you want to calculate the profit share.

4. Specify the date on which the employees would be paid the PTU amounts. Oracle HRMS uses this date to determine when the Profit Sharing 2021 and Profit Sharing 2021 Info elements get processed through payroll.

5. Specify the legal employer.

6. Indicate if you want to include temporary workers in the profit sharing process.

7. If you chose to include temporary workers, specify the minimum number of days these employees must have worked for them to be eligible.

8. Optionally, select an assignment set.

   Use assignment sets to exclude or include specific employees from the profit sharing process. You can also use assignment sets to process different groups of employees in separate batches.

   If you use assignment sets to process employees in separate groups, make sure you specify the same values for "Include Temporary Workers" and "Minimum Worked Days" for all groups. If you do not specify the same value, the profit sharing calculation could be inaccurate.

9. Specify a unique name for your BEE batch header.

10. Click OK and then Submit.

    The Profit Sharing Report generates a batch file of the specified name. The batch populates the following input values for the Profit Sharing 2021 and Profit Sharing 2021 Info elements:

    Profit Sharing 2021 Element Input Values

    Input Value	Description
    Pay Value	Amount of the profit sharing to be paid to the employee. The calculation is as follows: Least of Old Total PTU Calculated (L) and Best Cap (O)
    Jurisdiction	Left blank and not used in the calculation.
    Separate Payment	Indicates that the profit sharing amount is being paid with other earnings but taxes on these earnings are being calculated using article 142. The application sets this to Yes by default. Note: If you set both Separate Payment and Process Separately to No, the application considers the profit sharing earnings to be regular earnings and calculates taxes using article 113.
    Eligible Worked Days (B)	Number of days the employee worked in the year. This field is populated based on the Eligible Work Days for Profit Sharing balance for the employee.
    Eligible Compensation (C)	Employee basis for profit sharing calculation. This is based on the Eligible Compensation for Profit Sharing balance for the employee.
    Capped Average Daily Salary (E)	The employee's daily salary capped to 1.2 times the highest daily salary.
    Old Total PTU Calculated (L)	Total PTU of an employee, calculated using the Capped Average Daily Salary. The calculation is as follows: Old Worked Days PTU (J) + Old Average Salary PTU (K)
    Average Previous PTU Paid (M)	Average of last three years profit sharing value of an employee.
    Salary based on Days Cap (N)	Three months of an employee's salary The calculation is as follows: Capped Average Daily Salary(E) x Number of Employee Salary Days to Cap Payment value of the "PTU Factors" user table
    Best Cap (O)	Best Cap per employee. The calculation is as follows: Greatest of Average Previous PTU Paid(M) and Salary based on Days Cap (N)
    Days PTU Payment (S)	Portion of an employee's profit share that is based on number of days worked. The calculation is as follows: Pay Value x Days PTU Percentage (Q)
    Salary PTU Payment (T)	Portion of an employee's profit share that is based on daily salary. The calculation is as follows: Pay Value x Salary PTU Percentage (R)
    ISR Subject	Portion of the profit sharing payment that is subject to ISR tax. This is based on the limits specified within ISR tax law. The ISR Subject value is computed using Unit of Measure and Update (UMA).
    ISR Exempt	Portion of the profit sharing payment that is exempt from ISR tax. This is based on the limits specified within ISR tax law. The ISR Exempt value is computed using UMA.

    Profit Sharing 2021 Info Element Input Values

    Input Value	Description
    Separate Payment	Indicates the profit sharing amount should be paid separate from other earnings. The application defaults this to Yes.
    Process Separately	Indicates that the profit sharing amount is being paid with other earnings but taxes on these earnings are being calculated using article 142. The application sets this to 'Yes' by default. Note: If you set both Separate Payment and Process Separately to No, the application considers the profit sharing earnings to be regular earnings and calculates taxes using article 113.
    Total Profit Shared (2A)	This is the same as the Total Amount to Share, entered at the Legal Employer level. This is populated for use in reporting.
    Average Daily Salary Cap (D)	Employee's daily salary for profit sharing calculation.
    Total Worked Days (F)	Total days worked in the year by all eligible employees.
    Total Capped Average Salary (G)	Total capped average daily salary of all eligible employees. This is the sum of Capped Average Daily Salary (E).
    Old Worked Days PTU (J)	Fraction of Eligible Worked Days (B) of an employee and the Total Worked Days (F), multiplied by half the Total Profit Shared (2A). The calculation is as follows: B x (A/F)
    Old Average Salary PTU (K)	Fraction of Capped Average Daily Salary (E) of an employee and the Total Capped Average Salary (G), multiplied by half the Total Profit Shared (2A). The calculation is as follows: E x (A/G)
    Previous 1 FY PTU Paid	Previous year's profit sharing value of an employee.
    Previous 2 FY PTU Paid	Previous second year's profit sharing value of an employee.
    Previous 3 FY PTU Paid	Previous third year's profit sharing value of an employee.
    Days PTU Percentage (Q)	Percentage of an employee's profit share that is based on number of days worked. The calculation is as follows: Old Worked Days PTU (J) / Old Total PTU Calculated (L)
    Salary PTU Percentage (R)	Percentage of an employee's profit share that is based on daily salary. The calculation is as follows: 1 - Days PTU Payment (Q)

    You can download the entire batch into a spreadsheet using the BEE Spreadsheet interface. From there, you can review the data and make modifications. You can use the standard spreadsheet features to manipulate data in the spreadsheet generated by the process. You can also update the BEE batch by uploading the spreadsheet back into the application. Once you have verified the results, you can transfer the BEE Batch. Transferring the batch creates element entries for all employees included in the batch. These element entries can then be processed in a subsequent payroll run.

    See: BEE (Batch Element Entry), Oracle HRMS Configuring, Reporting, and System Administration Guide

11. Open the Batch Header window and query for your BEE batch header name.

12. To view your batch, click Assignment Lines.

13. To transfer the batch, click Process.

    See: Transferring a BEE Batch, Oracle HRMS Configuring, Reporting, and System Administration Guide

14. Once you have successfully processed the batch, you can run the payroll and distribute the earnings to your employees.

Planning Your End of Year Processing

End of Year Processing

End of Year processing is more than just running fourth quarter reports at tax season. It may require year-round maintenance, performed on a quarterly or monthly basis.

For the purposes of reporting taxes and wages to the federal and state governments and Social Security agencies, Oracle Payroll takes a snapshot in time of all of the employee balances in a given year and GRE, and archives these balances for paper and magnetic reporting. This allows you to reissue government mandated reports on an as needed basis.

End of year processing entails the following activities:

Mexico Report Schedule

Action	Date Due	From	To	Notes
Affiliation Transaction Type 02, Oracle HRMS Enterprise and Workforce Management Guide	5 days after employee separation	Former employer	IMSS	Separations at the GRE level.
Format 37	30 days after employee separation	Former employer	Employee	Separation and re-hire at the GRE level does not require this form.
Affiliation Transaction Type 08, Oracle HRMS Enterprise and Workforce Management Guide	5 days after employee hire	Employer	IMSS	Hires at the GRE level.
Format 37	30 days after employee hire	Employee	New employer	Separation and re-hire at the GRE level does not require this form.
Tax Remittance Report	Monthly	Employer	N/A	Not for submission.
CEDULA DE AUTODETERMINACION DE CUOTAS, Oracle HRMS Enterprise and Workforce Management Guide	Monthly	Employer	IMSS	Remitted through the SUA application.
Affiliation Transaction Type 07, Oracle HRMS Enterprise and Workforce Management Guide	Bimonthly for the variable part of the salary 5 days after change for the fixed part of the salary	Employer	IMSS
Format 37	January 31	Employer	Employee	All employees who earn less than $400,000 pesos.
Annual Tax Adjustment	January 31 or when the final annual rates are published	Employer	Employee	For all employees except those who meet one or more of the following requisites: Started employment between the selected reporting dates Earned more than $400,000 a year Requested in writing to be excluded Note: Simple employers perform the Annual Tax Adjustment for all employees.
Annual Work Risk Incident Report, Oracle HRMS Enterprise and Workforce Management Guide (Mexico)	February	Employer	IMSS	Used to calculate the work risk insurance premium (WRIP). Can run this report only once per calendar year.
DIM Report	February 15	Employer	SAT	All employees.
Format 2	March 31	Employer	SAT	Attachment D only.
Employee PTU earnings	March 31 - May 31	Employer	Employee	Perform the Profit Sharing Report to calculate.
Format 6 + Format 37	April 30	Employer	SAT	All employees who earned more than $400,000 pesos in the previous fiscal year or those who explicitly stated that they will report the tax by themselves.

See Also: Year End Archiver

Year End Preprocessing

Year End Archiver

The Year End Archiver is the Oracle Payroll utility that archives employee and employer data for a specific year and legal employer. Once archived, this data is available for end of year reporting.

You would run the Year End Archiver:

• Whenever you terminate an employee. You must archive the employee information before you can generate the Format 37. Use an assignment set that contains at least one of the employee's assignments.

• Before performing year end reporting. Run the Year End Archiver for all employees within each legal employer in the business group.

The only time you would need to run the Archiver for an employee more than once is if you have rehired them.

Who Gets Archived?

The Year End Archiver processes data for all employees who have had a payroll related activity (payroll run, balance adjustment, and so on) since the beginning of the calendar year.

In a given Year End Archiver run, it includes an employee if:

• The employee belongs to the Legal Employer (as on the Archiver's effective date) and has at least one employee assignment in the assignment set, if specified.

• The employee has had at least one paid action during the period of service.

• Employees who have been re-hired or have been paid profit sharing payments since they were processed by a previous Year End Archiver.

• The Archiver has either never been run for the person during this year or has been run with an effective date prior to the start date of the person's present period of service.

Additionally, the Year End Archiver archives seniority for all the Terminated Period of Services of employee in the current reporting year. It excludes any employees that were included in a prior execution of the Year End Archiver for the current reporting year.

Running the Year End Archiver creates a log file that lists the numbers of assignments that were skipped, in error, or processed successfully.

Viewing Archived Data

Use the View Archive window to view any employee or assignment data archived by the Year End Archiver. However, you cannot query for employer-level data that you have archived or stored against the payroll action.

This information is read-only. You cannot modify or update it from this window. For instructions on how to run, retry, view, and rollback this information, refer to Managing the Year End Archiver.

Adjusting and Retrying Records

If an employee's record has changes after you run the Year End Archiver, you can retry the Year End Archiver for that employee. It is not necessary to rerun the entire process. In instances where large numbers of employees' balances are changed after the Year End Archiver is run, it may be easier to rollback the Year End Archiver and re-run it to include the balance updates.

You can mark individual assignments for retry in the Employee Assignment Process window. You can also retry a payroll process for an assignment set but not for a dynamic assignment set.

You can re-archive employer data by marking the payroll action for retry in the Payroll Process Results window and then retrying the process by selecting Retry Payroll Process from the Submit Requests window. If a legal employer does not have any employees in it, then the Year End Archiver archives the employer data. In this case, you cannot re-archive employee data through the Retry Payroll Process. You must roll back the process and then rerun the Year End Archiver.

Managing the Year End Archiver

Year End Pre-Processing involves the following operations:

• Running the Year End Archiver

• Viewing archived data

• Troubleshooting archived data

• Retrying the Year End Archiver

• Rolling back the Year End Archiver

To Run the Year End Archiver

Run the this process from the Submit Requests window:

1. In the Request Name field, select Year End Archiver.

2. Click in the Parameters field if the Parameters box does not open automatically.

3. Specify the Year End Archiver that you want to run by selecting the Year and Legal Employer.

4. Optionally, specify the name of an assignment set that specifies the group of employees within the legal employer that need to be processed.

   You can also use the assignment set to exclude employees from processing. You must specify a value for the assignment set parameter when running the process as a part of termination processing for an employee or group of employees.

   Note: If you do not specify an assignment set, the Year End Archiver attempts to archive all employee assignments. This could create inaccuracies in your end-of-year reporting.

5. Click OK, then Submit.

6. On completion of the process, check the logfile for counts of successful, skipped, and assignments in error.

   Note: Do not run the Payroll Process and Year End Archiver concurrently. Running these processes concurrently can result in table locking and performance issues.

To View the Archived Data

1. Select Assignment Process Result from the View menu.

2. Select the appropriate assignment.

3. Select "YREND ARCHIVER-XXXXX" (where XXXXX is your legal employer name).

4. Click View Results.

   The View Archived Values window opens. This displays data archived for an employee, including:

   • Database item name

   • Value archived against an assignment action

   • Any associated context (such as GRE name)

   This information is read-only.

   Note: The check box on this window indicates if the Year End Archiver was locked by any other Year End report (such as Format 37) and cannot be rolled back or marked for retry.

Troubleshooting Archived Data

During the archival process, the Year End Archiver reports on the number of assignments successfully archived, skipped, or in error. To view the archive's error information:

1. Open the Requests window.

2. Select your request, and click View Log.

   This displays the Year End Archiver's logfile, including counts of successful, skipped, and assignments in error.

3. Open the Payroll Processes window.

4. Query for your Year End Archiver archive:

   • Specify "%YREND ARCHIVER% as the name.

   • Specify the year end dates.

   • Specify "Magnetic Report" as the action type.

5. Click Find.

   Oracle Payroll returns a list of all archives matching your search criteria.

• To view detailed process status, select your archive and click Process Info.

• For error information, select your archive and click Message.

• To see a list of all assignments completed, skipped, in error, and so on, select your archive and click Assignment Process. To view additional error information, select the assignment in error and click Message.

To Retry the Year End Archiver

Retrying the Year End Archiver re-archives any employee assignments that you have marked for retry.

If you have generated any of the following reports, you must first roll them back prior to retrying the Year End Archiver:

• Format 37

• Information Declaration Report (DIM)

Mark assignments for retry in the Employee Assignment Process window. You can also run this process for an assignment set but not for a dynamic assignment set. If there are no employees in the legal employer, you cannot perform a retry.

1. In the Name field, select Retry Payroll Process.

2. Click in the Parameters field if the parameters window does not automatically open.

3. In the Process Year field, enter the appropriate year.

4. In the Process Type field, select Magnetic Report.

5. In the Payroll Process field, select the appropriate Year End Archiver.

6. Click OK, then Submit.

To Roll Back the Year End Archiver

When you roll back the Year End Archiver, you are removing all archived data on year end balances from the system.

If you have generated any of the following reports, you must roll them back prior to rolling back the Year End Archiver:

• Format 37

• Information Declaration Report (DIM)

You roll back the Year End Archiver from the Submit Requests window.

1. In the Name field, select Rollback.

2. Click in the Parameters field if the Parameters box does not open automatically.

3. In the Process Year field, enter the appropriate year.

4. In the Process Type field, select Magnetic Report.

5. In the Payroll Process field, select the appropriate Year End Archiver roll back.

6. Click OK, then Submit.

Format 37 Report

Format 37 Report

The Federal Tax Institution (SAT) requires that employers provide the Certificate of Wages, Salaries, Travel Expenses, Assimilated Concepts, and Subsidy for Employment report (Format 37) to employees at the following times:

• Within 30 days of an employee's separation from the employer (voluntary or involuntary)

• Annually at end-of-year for all employees

  Note: Some employers may opt to provide Format 37 reports to only those employees that earn 400,000 pesos a year or more. Employees that earn less than 400,000 pesos a year can obtain a Format 37 report by submitting a request in writing.

Oracle HRMS provides the ISR Tax Format 37 concurrent process to generate your Format 37 reports as a PDF file. ISR Tax Format 37 uses the XML Publisher functionality to convert the data archived by the Year End Archiver into the PDF output; therefore, you must have completed the archival process before running ISR Tax Format 37.

See: Year End Archiver

Format 37 Year-End Legend

For year-end purposes, the Format 37 must include a legend at the bottom of the last page that specifies:

• ISR Tax Folio Number

• ISR Tax Reporting Date

• Whether or not the Annual Tax Adjustment was performed for the individual Format 37

When you run the Format 37 report, you can choose between the default Format 37 layout or the layout with the year-end legend.

Format 37 Sort Options

You can organize your Format 37 reports according to user-defined criteria or sort options. Oracle Payroll does not require that you use sort options to generate your Format 37 report, but they are the best way to customize the report to your specific needs. You can sort reports by any three of the following options:

• Employee Name

• Location

• Organization

• CURP

The following is an example of how to use sort options to customize the Format 37 report.

To create a Format 37 report sorted by Organization, Location, and Employee Name:

1. Enter Organization into the Sort Option One field.

2. Enter Location into the Sort Option Two field.

3. Enter Employee Name into the Sort Option Three field.

Using the selected Sort Options, Oracle Payroll generates the report listing the Format 37 box totals for each employee alphabetically by location within each organization for the selected GRE.

Note: The sort options are nested. If you change Sort Option Two from Location to Employee Name, Sort Option Three automatically clears.

Format 37 Parameters

The following parameters exist for the Format 37 report:

Parameter	Description
Reporting Year (Required)	Enter the four digit calendar year.
Legal Employer Archived by Year End Data Archiver (Required)	Select the Legal Employer. Only Legal Employers that you have archived using the Year End Archiver for the specified Reporting Year appear in the list.
Selection Criterion (Required)	Select the selection criteria by which the target employee(s) are identified. Available criteria are: Assignment Set CURP Employee Name Location Organization
Sort Options	Use the three fields for sort options to support your report results. If you do not select any sort options, the report uses Employee Name as the default.
Folio Number	Employer's folio number.
Folio Date	Employer's folio date.
Template Name	ISR Tax Format37 Template for Mexico - Default ISR Tax Format37 Template for Mexico with Legend - Format37 forms will include a legend at the bottom that displays year-end tax information

Format 37 Box Information

The following tables depict the various boxes and fields on Format 37 and indicate where Oracle Payroll draws the appropriate balances to complete the report.

Date and Year

Format 37 Box	Title	Information Source
n/a	Start Month	January or the employee's hire month, whichever is later.
n/a	End Month	December or employee's termination month, whichever is earlier.
n/a	Fiscal Year	Input from SRS.

Data of the Worker or Assimilated to Salaries

Format 37 Box	Title	Information Source
n/a	Employee RFC ID	Determined by Oracle HR
n/a	CURP	Determined by Oracle HR
n/a	Paternal Last Name	Determined by Oracle HR
n/a	Maternal Last Name	Determined by Oracle HR
n/a	Given Name(s)	Determined by Oracle HR
n/a	Geographical area of minimum wage	Determined by GRE data
n/a	Employer did Annual Tax Calculation?	Determined by the Annual ISR Tax Adjustment process.
n/a	Reporting for Fiscal Year or 1991	Fiscal Year
n/a	Rate Used for 1991	Blank
n/a	Subsidy proportion according fiscal year reported regulations	Determined by GRE/Legal Employer data
n/a	Subsidy proportion according to 1991 regulations	Not supported
n/a	Fraction I	Not supported
n/a	Fraction II	Not supported
n/a	Creditable Subsidy Applied	"ISR Creditable Subsidy" balance This takes into account earnings from multiple employers
n/a	Union Worker?	Determined by the Union Worker flag on the Bargaining Unit tab of the Assignments window.
n/a	If assimilated, the proper code	Not supported
n/a	State ID where worker worked	Jurisdiction as defined by the employee's assignment
n/a	Other Employer RFCs	Determined through Person EITs

Other Information Data

Format 37 Box	Title	Information Source
n/a	Total Amount of Voluntary Contributions	"Format 37 Voluntary Contributions Total" balance
n/a	Amount of deductable voluntary contributions for employees who filed the Tax declaration by themselves	If "Format 37 Voluntary Contributions ER" balance is Zero, then "Format 37 Voluntary Contributions EE" balance Otherwise 0.
n/a	Check if the employer applied the Amount of voluntary contributions to tax calculation	0 - Both "Format 37 Voluntary Contributions ER" and "Format 37 Voluntary Contributions EE" are Zero 1 - "Format 37 Voluntary Contributions ER" balance is Non-Zero 2 - "Format 37 Voluntary Contributions ER" balance is Zero and "Format 37 Voluntary Contributions EE" is Non-Zero
n/a	Amount of deductable voluntary contributions applied by employer	"Format 37 Voluntary Contributions ER" balance

ISR

Format 37 Box	Title	Information Source
A	Total earnings caused for salary, wages, and assimilated concepts	Box Q + R + a + i + m + S1
B	Local Tax Box	"Employee State Tax Withheld" balance
C	Exempt earnings	Box V + c + R1
D	Total Deductible Voluntary Contributions	"Format 37 Voluntary Contributions ER" balance
E	Non-cumulative earnings	Box Y + g
F	Cumulative earnings	Box A - B - C - D - E
G	Tax as per Annual Rate	"ISR Calculated" balance
H	Creditable Subsidy	"ISR Creditable Subsidy" balance
I	Non-Creditable Subsidy	"ISR Non Creditable Subsidy" balance
J	Amount of Subsidy for Employment in the FY	ISR Subsidy for Employment
K	Creditable Subsidy as per Fraction III	"Format 37 ISR Creditable Subsidy as per Fraction III" balance
L	Creditable Subsidy as per Fraction IV	"Format 37 ISR Creditable Subsidy as per Fraction IV" balance
M	Tax on cumulative earnings	Box G - H
N	Tax on non-cumulative earnings	"Format 37 ISR on Non Cumulative Earnings" balance
O	Tax on Total income	Box M + N
P	Tax withheld	Box Z + h + j + n + U1 + V1

Earnings by Separation

Format 37 Box	Title	Information Source
Q	Total amount in one payment	"Format 37 Retirement Earnings in One Payment" balance
R	Total earnings in partial payments	"Format 37 Retirement Earnings in Partial Payments" balance
S	Daily amount earned for jubilation, pension, or retirement in one payment	"Format 37 Retirement Daily Earnings in One Payment" balance
T	Amount that should be earned in period if it did not have a single payment caused for jubilation, Pension, or retirement in one payment	"Format 37 Retirement Period Earnings" balance
U	Number of Days	"Format 37 Retirement Earnings Days" balance
V	Exempt earnings	"Format 37 Retirement Exempt Earnings" balance
W	Taxable income	"Format 37 Retirement Taxable Earnings" balance
X	Cumulative earnings	"Format 37 Retirement Cumulative Earnings" balance
Y	Non-Cumulative earnings	Box W - X
Z	Tax withheld	"Format 37 ISR Withheld for Retirement Earnings" balance
'a'	Total amount paid	"Amends" balance
'b'	Number of years of service of worker	Time elapsed in years since the first hire date
'c'	Exempt earnings	Box a - d
'd'	Subject earnings	"ISR Subject for Amends" balance
'e'	Cumulative earnings (last monthly ordinary salary)	"Last Monthly Ordinary Salary" balance
'f'	Tax corresponding to the last monthly ordinary salary	"Last Monthly Ordinary Salary Withheld" balance
'g'	Non-cumulative earnings	IF d <> e AND d > e THEN g = d - e ELSE g = 0
'h'	Tax withheld	"ISR Withheld for Amends" balance

Earnings assimilated to salaries (not included)

Format 37 Box	Title	Balance or Other Information Source
i	Earnings assimilated to salaries	"Format 37 Assimilated Earnings" balance
j	Tax withheld in fiscal year	"Format 37 ISR Withheld for Assimilated Earnings" balance

Stock Options Earnings

Format 37 Box	Title	Balance or Other Information Source
k	Vesting stock option market value	"Year End Stock Options Vesting Market Value" balance
l	Granted Stock Option price	"Year End Stock Options Grant Price" balance
m	Cumulative Earning	Box k - box l (the value of box k must be greater than box l)
n	Tax withheld	"Year End Stock Options ISR Withheld" balance

Earnings paid to workers by the employer (includes 3)

Format 37 Box	Title	Information Source
'o'	Wages and Salaries	"Year End ISR Subject for Fixed Earnings" and "Year End ISR Exempt for Fixed Earnings" balances
'p'	Christmas Bonus	"Year End ISR Subject for Christmas Bonus" and "Year End ISR Exempt for Christmas Bonus" balances
'q'	Travel Expenses	"Year End ISR Subject for Travel Expenses" and "Year End ISR Exempt for Travel Expenses" balances
'r'	Overtime	"Year End ISR Subject for Overtime" "Year End ISR Exempt for Overtime" balances
's'	Vacation Premium	"Year End ISR Subject for Vacation Premium" and "Year End ISR/Exempt for Vacation Premium" balances
't'	Dominical Premium	"Year End ISR Subject for Dominical Premium" and "Year End ISR Exempt for Dominical Premium" balances
'u'	Profit Sharing	"Year End ISR Subject for Profit Sharing" and "Year End ISR/Exempt for Profit Sharing" balances
'v'	Healthcare Reimbursement	"Year End ISR Subject for Healthcare Reimbursement" and "Year End ISR Exempt for Healthcare Reimbursement" balances
'w'	Savings Fund	"Year End ISR Subject for Savings Fund" and "Year End ISR Exempt for Savings Fund" balances
'x'	Savings Box	"Year End ISR Subject for Savings Box" and "Year End ISR Exempt for Savings Box" balances
'y'	Pantry Coupons	"Year End ISR Subject for Pantry Coupons" and "Year End ISR/Exempt for Pantry Coupons" balances
'z'	Aid for Death/Funeral Expenses	"Year End ISR Subject for Funeral Aid" and "Year End ISR Exempt for Funeral Aid" balances
A1	Worker Contributions Paid by Employer	"Year End ISR Subject for Worker Contributions paid by ER" and "Year End ISR Exempt for Worker Contributions paid by ER" balances
B1	Punctuality Incentive	"Year End ISR Subject for Punctuality Incentive" and "Year End ISR Exempt for Punctuality Incentive" balances
C1	Life Insurance Premium	"Year End ISR Subject for Life Insurance Premium" and "Year End ISR Exempt for Life Insurance Premium" balances
D1	Major Medical Expenses Insurance	"Year End ISR Subject for Major Medical Expenses Insurance" and "Year End ISR Exempt for Major Medical Expenses Insurance" balances
E1	Restaurant Coupons	"Year End ISR Subject for Restaurant Coupons" and "Year End ISR Exempt for Restaurant Coupons" balances
F1	Gasoline Coupons	"Year End ISR Subject for Gasoline Coupons" and "Year End ISR Exempt for Gasoline Coupons" balances
G1	Uniform Coupons	"Year End ISR Subject for Uniform Coupons" and "Year End ISR Exempt for Uniform Coupons" balances
H1	Aid for Rent	"Year End ISR Subject for Rental Aid" and "Year End ISR Exempt for Rental Aid" balances
I1	Aid for School Material	"Year End ISR Subject for Educational Aid" and "Year End ISR Exempt for Educational Aid" balances
J1	Aid for Glasses	"Year End ISR Subject for Glasses Aid" and "Year End ISR Exempt for Glasses Aid" balances
K1	Aid for Transportation	"Year End ISR Subject for Transportation Aid" and "Year End ISR Exempt for Transportation Aid" balances
L1	Union Quotas Paid by Employer	"Year End ISR Subject for Union Quota paid by ER" and "Year End ISR Exempt for Union Quota paid by ER" Balances
M1	Disabilities subsidy	"Year End ISR Subject for Disability Subsidy" and "Year End ISR Exempt for Disability Subsidy" balances
N1	Scholarship for children of workers	"Year End ISR Subject for Scholarship for Children of Workers" and "Year End ISR Exempt for Scholarship for Children of Workers" balances
O1	Payments by Other Employers (only if employer that makes certification did annual tax calc)	Determined through Person EITs
P1	Other Income	"Format 37 ISR Subject for Other Income" and "Format 37 ISR Exempt for Other Income" balances

Tax on Income (ISR) Caused for Wages And Salaries

Format 37 Box	Title	Information Source
Q1	Sum of subject earnings caused for wages and salaries	Sum of Subject Portions from boxes o to P1
R1	Sum of exempt earnings caused for wages and salaries	Sum of Exempt Portions from boxes o to P1
S1	Sum of earnings caused by salary and wages	Box Q1 + R1
T1	Local Tax amount imputed to earnings caused by salary and wages	Not supported
U1	Tax withheld in fiscal year	"ISR Withheld" balance - box h
V1	Tax withheld by other employers (only for employers that made the certification that they Did an annual tax calc)	Not supported
W1	Positive balance determined in fiscal year that the employer will compensate in the next Fiscal year or it will request the return	"Format 37 Current Fiscal Year Arrears" balance
X1	Previous fiscal year positive balance not compensated in the fiscal year of this certification	"Format 37 Previous Fiscal Year Arrears" balance
Y1	Sum of Credit to Salary amounts that worker received	0
Z1	Credit to Salary Paid in cash in fiscal year	0
a1	Total income caused for social foresight benefits	"Format 37 Social Foresight Earnings" balance
b1	Sum of exempt income caused for social foresight benefits	"Format 37 ISR Exempt for Social Foresight Earnings" balance
c1	Amount of Subsidy for Employment paid in cash to the employee in the Fiscal Year	"ISR Subsidy for Employment Paid" balance

Note: Oracle HRMS maintains the Subject and Exempt portions for each earning element based on the taxability rules associated with the secondary classifications. You can feed the balances for Boxes o through P1 from the Subject and Exempt input values of the appropriate earnings elements.

Withholder Information (Employer)

Format 37 Box	Title	Information Source
n/a	Employer RFC	Determined by Legal Employer data
n/a	CURP	Not supported
n/a	Employer Legal Name	Determined by Legal Employer data
n/a	Legal Representative CURP	Determined by Legal Employer data
n/a	Legal Representative Names	Determined by Legal Employer data

Excluding Employees from the Format 37

The Format 37 end-of-year report includes all employees who have earned less than $400,000 pesos and have worked through the whole fiscal year. However, employees can opt to report their Format 37 directly to SAT. In those cases, you must exclude them from your company's Format 37 processing.

To exclude employees from your Format 37 report

1. For each employee that is opting out, indicate as such in the Mexico Employer Tax Signup person extra information type.

   See: Person Extra Information Types, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide

2. Navigate to the Assignment Set window.

3. Specify a name for the assignment set.

4. (Optional) Select a payroll name from the list of values.

   If you leave this field blank, you can use the same assignment set across all of your payrolls.

5. Click Criteria.

6. Specify dummy criteria by selecting any value for the Database Item, Operator, and Value/Database Item columns.

   You can edit this information later in the Fast Formula generated for the assignment set.

7. Save your work, and close the Criteria window.

8. In the Assignment Set window, click Generate.

   This generates a Fast Formula with the same name as your assignment set.

9. Open the Write Formula window, and edit your Fast Formula.

10. Query for your Fast Formula with the name of the assignment set you created.

11. Ensure that the formula Type is Assignment Set.

12. Click Edit.

13. Remove all existing text, and add your own eligibility criteria.

14. Click Verify.

15. Save your work.

You can the following sample formula to help you define your own assignment set fast formula:

/* * *
 * Formula Name: YourAssignmentSetFormula
     * Formula Type: Assignmnent Set
     * Created: 16-Aug-2006 
     * Author: QA_MEX 
     * * Description: Testing setup of assignment set for annual tax adjustment * 
     * * */
/* CALCULATIONS */
 INCLUDE_FLAG ='N'
 IF (IS_PER_EXEMPT_FROM_ADJ () = 'N') THEN 
    ( IF (IS_ASG_EXEMPT_FROM_ISR () = 'N') THEN 
       ( IF (CHECK_EE_SAL_CRITERIA () = 'Y') THEN 
                ( IF (CHECK_EE_EMPLOYMENT_CRITERIA () = 'Y') THEN 
             /*Include the assignment in assignment set*/ 
             INCLUDE_FLAG ='Y' 
                ) 
              ) 
    )
/* OUTPUTS */
RETURN INCLUDE_FLAG

Generating the Format 37 Report

Run the ISR Tax Format 37 concurrent process from the Submit Request window.

1. Select ISR Tax Format 37 in the Name field.

2. Click on the parameters field if the Parameters window does not automatically open.

3. Select the reporting year.

4. Specify the Legal Employer whose data you archived through the Year End Archiver.

5. Choose your selection criteria:

   • Assignment Set

   • CURP

   • Employee Name

   • Location

   • Organization

6. Based on your selection criteria, use the activated field to identify the assignment(s) you want to report on.

7. Specify the sort options.

8. If necessary, specify the folio number and date you want printed on the Format 37.

9. Specify the template name.

   You can use the default ISR Tax Format 37, Format 37 with the year-end legend, or create one of your own. Use XML Publisher (XDO) to create a new template.

   Note: You must register any template you create with the ISR Tax Format 37 data sources, using the XML Publisher Administrator responsibility.

10. Click OK and then Submit.

Annual Tax Adjustments

Annual Tax Adjustments

The Annual Tax Adjustment process facilitates end-of-year processing by computing the annual ISR liabilities of the eligible employees, comparing them against the appropriate ISR deductions, and reporting the final ISR withholdings and reimbursements still due. This process is driven off annual tax tables issued by SAT at beginning of the year and provides capability to compute tax using the Article177/178 method.

Tax adjustment for a financial year is normally carried out in the month of February of the following year, so it is likely that payroll runs for the month of January already exist before runing the tax adjustment run for the previous year. Though you can run this process at any time in the year, it is strongly recommended that you run it only once in the year when you are ready to make the final adjustments required by tax law. The default reporting period begins January 01 and ends December 01, although you can specify alternate reporting dates.

See: Entering Tax Registration Information, Oracle HRMS Enterprise and Workforce Management Guide

Oracle Payroll keeps a record of the employees for whom this process has been run and reports the information on Format 37 at the end of the year. To be included in this report, the employees must:

• Earn less than $400,000 as yearly gross earnings

• Been continuously working between the reporting dates

• Not explicitly excluded by a Human Resources manager

  See: Person Extra Information Types, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide

Due to the sequential nature of the payroll process, you cannot run a payroll when future actions already exist. The Annual Tax Adjustment concurrent program uses Fast Formula-based balance adjustments instead of the standard payroll run. This process adjusts the value of the ISR Tax Withheld and other associated balances for the affected employees.

Note: The Annual Tax Adjustment process is different from the Tax Adjustment Run type that you can select while running Quickpays or Payroll Runs. While you can run the Tax Adjustment run type several times in the year, you should run the Annual Tax Adjustment process only once at the end of the year. Oracle Payroll tracks the Annual Tax Adjustment process for an employee and reports it on the end-of-year reports like Format 37 and DIM. The results of the Tax Adjustment run type are not reported on any statutory reports.

Processing Employees' Mid-Year Legal Employer Changes

According to SAT Statutory rules, employees who have changed legal employer in the middle of the year are not eligible for annual tax adjustment. Oracle Payroll for Mexico provides a formula function named CHECK_EE_LEGAL_EMPLOYER_CHANGE to identify whether an employee has changed legal employer in the middle of the year. You must modify the existing formula text associated to the Annual Tax Adjustment Assignment Set, by adding the formula function call.

Example:

You can use the following example to modify your existing formula.

      /*
         *** Date: 07 Feb 2008 23:52 ***
         *** Author: HRMS MX PM      ***
         *** Assignment Set formula to check the employee    ***
         *** eligibility according SAT statutory rules       ***
         *** 1. EE did not request report the F37 by himself ***
         *** 2. EE has earned ISR subject earnings           ***
         *** 3. EE has not earned more than 400k pesos in FY ***
         *** 4. EE has worked the entire FY                  ***
         *** 5. EE has not changed Legal Employer in the entire Year ***
         */

    INCLUDE_FLAG ='N'
         IF IS_PER_EXEMPT_FROM_ADJ () = 'N' AND          /* EE not exempt of Ann Adjustment */
            IS_ASG_EXEMPT_FROM_ISR () = 'N' AND          /* EE has subject earnings */
            CHECK_EE_SAL_CRITERIA () = 'Y' AND           /* EE earned less than statutory limit ($400k) */
            CHECK_EE_EMPLOYMENT_CRITERIA () = 'Y' AND    /* EE worked the whole FY */
            CHECK_EE_LEGAL_EMPLOYER_CHANGE () = 'N'      /* EE has not changed Legal Employer in the entire Year */
         THEN
            INCLUDE_FLAG ='Y'

    RETURN INCLUDE_FLAG

Calculating Annual Tax Adjustments for End of Year

Excluding Employees from the Tax Adjustment Process

Oracle Payroll provides multiple methods for defining employee eligibility for the Annual Tax Adjustment process.

To exclude employee through the Person EIT

1. For employees who are electing to perform their own Format 37 reporting, you must mark them as ineligible for the Annual Tax Adjustment process. Open the Mexico Employer Tax Signup EIT.

   See: Person Extra Information Types, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide

2. Set the Exempt Adjustment parameter to No.

3. Specify the time period that this employee has elected to be ineligible.

4. Save your changes.

Once you have identified the ineligible employees, you must create an assignment set to exclude them. See the next section for instructions.

To specify inclusion criteria through an assignment set

You can use fast formula-based assignment sets to specify the criteria for selecting employees who are eligible for the annual tax adjustment. Using a fast formula based assignment set allows the process to determine eligibility at run-time rather than using a user-maintained list of employees. Oracle Payroll delivers a set of fast formula functions that you can use to test eligibility criteria within the assignment set.

Perform the following steps to create a fast formula based assignment set:

1. Navigate to the Assignment Set window.

2. Specify a name for the assignment set.

3. (Optional) Select a payroll name from the list of values.

   If you leave the payroll blank, you can use the same assignment set across all your payrolls.

4. Click Criteria.

5. Specify a dummy criteria. Select any value for the Database Item, the Operator, and the Value/Database Item columns. You can edit this condition later in the fast formula generated for the assignment set.

6. Save your work and exit the Criteria window.

7. In the Assignment Set window, click Generate.

   This generates a fast formula with the same name as your assignment set.

8. Open the Write Formula window, and edit your fast formula.

9. Query for your fast formula with the name of the assignment set you created in the previous steps.

10. Ensure that the formula Type is Assignment Set.

11. Click Edit.

12. Remove all existing text, and add your own eligibility criteria.

13. Click Verify.

14. Save your work.

Running the Annual Tax Adjustment Process

Run the Annual Tax Adjustment process from the Submit Request window.

Note: The Annual Tax Adjustment process adjusts the value of the ISR Withheld balance for affected employees. It does not process any earnings or deductions for refunding or recovering the amount from the employee. You must create additional earnings or deductions elements and process them within subsequent payroll runs in order to pay the employees any refunds or to deduct any amount for recovering taxes paid on their behalf.

1. Select Annual Tax Adjustment in the Name field.

2. Click on the parameters field if the Parameters window does not automatically open.

3. Specify the payroll name.

4. Specify the payroll's consolidation set.

5. Specify the effective date.

   Balance adjustment will be effective on this date. For accurate results, it is recommended that you use December 31st of the fiscal year as the effective date.

6. Specify the assignment set, if any.

   Use an assignment set to restrict the employees that are processed. If you do not specify an assignment set, Oracle Payroll processes all employees who are associated with the payroll entered in the Payroll Name parameter on the specified effective date. The assignment set can be static (employee names entered in the Amendments criteria) or dynamic (employees identified based on criteria specified in the fast formula associated with the assignment set).

7. Specify the tax article you want to use with this tax adjustment.

   Note: Oracle Payroll delivers the tax rate tables associated with Articles 177 and 178. You can maintain your own tax rate using the User Defined Tables functionality.

   See: Defining Custom ISR Tax Tables

8. Specify the annual subsidy and annual tax tables.

9. Click OK and then Submit.

   Oracle Payroll stores the results of the Annual Tax Adjustment process as run results for the "Annual Tax Adjustment" element.

   The Annual Tax Adjustment process adjusts the value of the ISR Withheld balance for the affected employees. It does not process any earnings or deductions for refunding the amount from the employee. You must create additional earnings or deductions elements and process them within subsequent payroll runs in order to pay the employees any refunds or to deduct any amount for recovering taxes paid on their behalf.

You can view the results of the Annual Tax Adjustment process on the View Run Results window or by running the Employee Run Results report.

Oracle Payroll stores the results of the Annual Tax Adjustment Process as run results for the Annual Tax Adjustment element. The following is a description of the results:

Description of Annual Tax Adjustment Results

Result	Description
Pay Value	Amount by which the ISR tax has been adjusted. A negative value means the employee needs to be refunded some money. This input value feeds the ISR Withheld balance and affects the data reported on End of Year reports like Format 37 and Format 30.
ISR Tax Annual Rate Table	Tax rates table used for the calculation.
ISR Calculated Adjustment	Amount by which ISR Calculated has been adjusted. This input value feeds the ISR Calculated balance.
ISR Tax to Charge Adjustment	Amount by which ISR Tax to Charge has been adjusted. This input value feeds the ISR Tax to Charge balance.
Calculation Mode	Specifies what Articles were used for the calculation.

DIM Interface Reporting

Multiple Informative Declaration (DIM) Interface

The SAT requires that employers submit to them their employees' wages, salaries, and ISR withholdings on a yearly basis. The Multiple Informative Declaration (DIM) program is the Java application they provide for this purpose. This program accepts flat files with data in a continuous delimited sequence. Oracle Payroll provides the Information Declaration Report (DIM) process to generate this file.

The DIM information must include any ISR tax withheld to any employee in the fiscal year (January 1 through December 31). If there are any rehires in the same GRE, then the DIM interface recalculates the seniority for employees having multiple period of services using the function CALC_SENIORITY. This function will calculate the seniority of an employee for each period of service in the current reporting year based on the original hire date for the first period of service and period of service start date for the remaining periods of service.

Oracle Payroll provides the Information Declaration Report (DIM) concurrent program to produce the data in a format requi red by SAT for uploading into the DIM program. The output file produced by Oracle Payroll corresponds to Attachment 1 (ISR Reporting) of the DIM.

Output File Format

The Information Declaration Report (DIM) concurrent program creates five output files in the default output directory for your application's concurrent processing:

File Name	File Type	Description
DIMAAABBBBBMMDDYYHHMISS_4_P.eft	Fixed Format	Wages, salaries, and tax information. Upload this file to DIM.
DIMAAABBBBBMMDDYYHHMISS_3_P.eft	Comma Separated	Audit report for DIM. This file contains details of employee wages, salaries, and ISR tax and can be opened using a spreadsheet tool for review and verification. Do not upload this file to DIM.
DIMAAABBBBBMMDDYYHHMISS_2_P.eft	Comma Separated	Exception report for DIM. This file contains records that had errors or did not pass validation rules. The file can be opened using a spreadsheet tool. Do not upload this file to DIM.
DIMAAABBBBBMMDDYYHHMISS_1_P.pdf	PDF	Summary report. This report provides a summary of data reported on the main report.
DIMAAABBBBBMMDDYYHHMISS.xml	XML	The XML file containing all the DIM information. This file is currently for internal use only.

These files using the following naming convention:

• AAA: First three characters of the Legal Employer name

• BBBBB: Organization ID for the Legal Employer

• MMDDYY: Date when the Information Declaration Report (DIM) program was run (MM = Month, DD = Day, YY = Year)

• HHMISS: Time when the Information Declaration Report (DIM) program was run (HH = Hour, MI = Minutes, SS = Seconds)

Generating the DIM Report

The Information Declaration Report (DIM) process generates files corresponding to Attachment 1 (ISR Reporting) of SAT's Format 30. These files are for submission through the DIM application. This process reports on data archived by the Year End Archiver.

Important: Before running this report, ensure that the Run XML Publisher for Report Generation (RUN_XDO) and Print Files (PRINT_FILE) action parameters are set to Y. These action parameters are available in the Action Parameters window. For more information about the action parameters, refer to the Oracle HRMS Implementation Guide.

Run the Information Declaration Report (DIM) from the Submit Request window.

To run the Information Declaration Report (DIM) process

1. Select Information Declaration Report (DIM) in the Name field.

2. Click on the parameters field if the Parameters window does not automatically open.

3. Specify the reporting year.

4. Specify the legal employer you want to report on.

   Oracle Payroll validates this legal employer against the list of all legal employers for whom you have run the Year End Archiver.

5. Click OK and then Submit.

   This report creates five output files in the default output directory for your application's concurrent processing:

   File Name	File Type	Description
   DIMAAABBBBBMMDDYYHHMISS_4_P.eft	Fixed Format	Wages, salaries, and tax information. Upload this file to DIM.
   DIMAAABBBBBMMDDYYHHMISS_3_P.eft	Comma Separated	Audit report for DIM. This file contains details of employee wages, salaries, and ISR tax and can be opened using a spreadsheet tool for review and verification. Do not upload this file to DIM.
   DIMAAABBBBBMMDDYYHHMISS_2_P.eft	Comma Separated	Exception report for DIM. This file contains records that had errors or did not pass validation rules. The file can be opened using a spreadsheet tool. Do not upload this file to DIM.
   DIMAAABBBBBMMDDYYHHMISS_1_P.pdf	PDF	Summary report. This report provides a summary of data reported on the main report.
   DIMAAABBBBBMMDDYYHHMISS.xml	XML	The XML file containing all the DIM information. This file is currently for internal use only.

   These files using the following naming convention:

   • AAA: First three characters of the Legal Employer name

   • BBBBB: Organization ID for the Legal Employer

   • MMDDYY: Date when the Information Declaration Report (DIM) program was run (MM = Month, DD = Day, YY = Year)

   • HHMISS: Time when the Information Declaration Report (DIM) program was run (HH = Hour, MI = Minutes, SS = Seconds)

6. You can view these files from the following windows:

   • View Payroll Process Results: You can view all the output files by navigating to the View Payroll Process Results Window. Query up the Information Declaration Report Process and click Output. You can then select the file that you wish to view.

   • Have a system administrator copy the files from the application's output directory to a location accessible by the users.

7. Submit the output file to the SAT through the DIM application.

Rolling back the Information Declaration Report (DIM)

This report applies a lock to the Year End Archiver. Before you can rollback or retry the archiver, you must first rollback the Information Declaration Report (DIM).

See: Correction of Run Results: Rollbacks

Format 2-D Reporting

Fiscal Year Declaration for Moral Persons, General Regime

SAT requires that employers withhold ISR from their employees each payroll period and then report those withholdings through the "Fiscal Year Declaration for Moral Persons, General Regime" (Format 2). Attachment D of Format 2 relates to employee earnings paid by the employer.

Attachment D categorizes the employees' earnings composition into different ranges based on Unit of Measure and Update (UMA). This report must include all employee earnings earned within the legal employer during the fiscal year.

Oracle HRMS provides the Format 2-D concurrent process to generate your Format 2-D reports. The Format 2-D process takes all employees identified by the parameters specified when you start the process and generates an XML file based on the data archived by the Year End Archiver; therefore, you must have completed the archival process before running Format 2-D.

See: Generating the Format 2-D Report

Output File Format

The Format 2-D report creates three output files:

File Name	File Type	Description
F2DAAABBBBBMMDDYYHHMISS_2_P.pdf	PDF	Pre-printed form of Format 2-D file for the specified Legal Employer and reporting year.
F2DAAABBBBBMMDDYYHHMISS_1_P.eft	CSV	Audit report for Format 2-D. This file contains details of employee wages and salaries. You can view this file with a spreadsheet tool for review and verification.
F2DAAABBBBBMMDDYYHHMISS.xml	XML	XML file containing all the Format 2-D information. For internal use only.

These files use the following naming convention:

• AAA: First three characters of the GRE name.

• BBBBB: Organization ID of the GRE.

• MMDDYYHHMISS: Date and time when the you ran the Information Declaration Report.

Format 2-D Box Information

The following table depicts the various boxes and fields on Format 2-D and indicates where Oracle Payroll draws the appropriate balances to complete the report.

Field	Archived Value
Employer RFC	RFC ID
Wages and Salaries	Year End ISR Subject for Fixed Earnings
Overtime	Year End ISR Subject for Overtime
Profit Sharing	Year End ISR Subject for Profit Sharing
Christmas Bonus	Year End ISR Subject for Christmas Bonus
Vacation Premium	Year End ISR Subject for Vacation Premium
Savings Fund	Year End ISR Subject for Savings Fund
Aid for Pantry and Food	"Format 2D Aid for Pantry and Food" Note: This value consists of the sum of Pantry Coupons, Pantry in Cash, Pantry in Kind, and Restaurant Coupons.
Aid for Transportation	Year End ISR Subject for Transportation Aid
Other Earnings	Total Subject Earnings - Sum of all above boxes
Totals	Sum of all balances

Generating the Format 2-D Report

The Format 2-D process generates the Format 2-D output.

Run the Format 2-D process from the Submit Request window.

To run the Format 2-D process

1. Select Format 2-D in the Name field.

2. Click on the parameters field if the Parameters window does not automatically open.

3. Specify the reporting year and legal employer.

4. Click OK and then Submit.

The Format 2-D report creates three output files:

File Name	File Type	Description
F2DAAABBBBBMMDDYYHHMISS_2_P.pdf	PDF	Pre-printed form of Format 2-D file for the specified Legal Employer and reporting year.
F2DAAABBBBBMMDDYYHHMISS_1_P.eft	CSV	Audit report for Format 2-D. This file contains details of employee wages and salaries. You can view this file with a spreadsheet tool for review and verification.
F2DAAABBBBBMMDDYYHHMISS.xml	XML	XML file containing all the Format 2-D information. For internal use only.

These files use the following naming convention:

• AAA: First three characters of the GRE name.

• BBBBB: Organization ID of the GRE.

• MMDDYYHHMISS: Date and time when the you ran the Information Declaration Report.

Rolling back the Format 2-D process

This report applies a lock to the Year End Archiver. Before you can rollback or retry the archiver, you must first rollback the Format 2-D process.

See: Correction of Run Results: Rollbacks