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18 Define Payroll Legislations

This chapter contains the following:

Use the Configure New Payroll Legislation task to create payroll rules for legislations not initially provided by Oracle. It guides you through the process of configuring the various payroll objects needed for you to successfully run a payroll process in your legislation.

Payroll objects you configure include:

Legislative rules
Primary element classifications
Valid payment types
Deduction groups
Balance dimensions
Legislative data groups

Legislative Rules

These rules include how the employee records are managed when that person is rehired into your organization and the starting month of your legislation's tax year. For some localizations, a rehire continues to be associated with the earlier payroll relationship, thereby having access to prior data, such as all year- to-date balances. For other localizations, a rehire creates a new payroll relationship record with no access to prior data. Statutory rules within your localization would determine the selection you make here.

Primary Element Classifications

Element classifications are collections of related elements. For your legislation, you select the primary classifications that include the elements you need for payroll processing. Once selected, you can then provide new names for them to match whatever terminology is most appropriate.

Valid Payment Types

Payment types are the means by which payments are issued to your workers. For your legislation, select the supported payment methods and provide new names for them as appropriate.

Deduction Groups

Deduction groups are logical sets of deduction types, elements, and calculation rules. A legislation may require them for the calculation of certain types of deductions, such federal, social insurance, taxes, or involuntary deductions. For your legislation, select the supported deduction groups and provide new names for them as appropriate.

The Configure New Payroll Legislation flow creates a sample deduction card for your localization. The Deduction Card creates the deduction components for the deduction groups you selected. The element template then associates these components with the statutory deduction elements you create. These deduction components must be associated with your employees for that particular deduction to be processed.

Balance Dimensions

Balance dimensions identify the specific value of a balance at a particular point in time, based on a combination of criteria, including time, employee relationship level, jurisdiction, payroll run, and tax reporting unit. For your legislation, select the supported balance dimensions and provide new names for them as appropriate. The Configure New Payroll Legislation task creates some predefined balances that are used within the Statement of Earnings, such as Gross Earnings and Net Pay. Additionally, the Net Pay balance is required to setup Organization Payment Method.

Legislative Data Groups

A legislative data group must be defined for your new legislation, either before completing this task or afterwards. Access this through the Manage Legislative Data Groups task.