PeopleSoft Global Payroll for Switzerland 9.1 PeopleBook

Performing Gross Calculations

This chapter discusses:

Channels for gross input.
13th month payments.
Hourly payments.
Swissdec earnings.
Net to Gross (gross up).

Note. Global Payroll for Switzerland supports gross calculations, which is not determined by law and depends more or less on the contractual agreements for your company. Various calculations follow certain patterns, and providing the framework for these rules makes the implementation of the payroll much more efficient. This chapter provides an overview of the framework and the methods that you might use to adjust the system to meet your needs, if necessary.

Channels for Gross Input

This section discusses:

Pages used to setup and use gross calculations.
Types of earnings and proposed entry points.

Pages Used to Setup and Use Gross Calculations

Use these pages to setup gross calculations and use standard gross calculations.

Page Name	Object Name	Navigation	Usage
Compensation	Job_Data3	Workforce Administration, Job Information, Job Data, Compensation	Assign compensation
Element Assignment by Payee	GP_ED_PYE	Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, Element Assignment By Payee	Assign earnings and deductions for multiple periods.
One Time (Positive Input)	GP_PI_MNL_ERNDED	Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, One Time (Positive Input)	Assign the per calculation period.
Pension Interface Upload CHE	GPCH_RC_PK02	Global Payroll & Absence Mgmt, Pension, Pension Interface Upload CHE	Upload pension fund payments.
Request Overtime CHE	GPCH_OT_EVENTS	Self Service, Payroll & Compensation, Request Overtime CHE	Assign per Self Service
Absence Event Entry	GP_ABS_EVENT	Global Payroll & Absence Management, Payee Data, Maintain Absences, Absence Event	Enter payments coming from absences.
Define Family Allow Data CHE	GPCH_CA_DATA	Global Payroll & Absence Management, Payee Data, Define Family Allow Data CHE	Enter family allowance payment data for individual employees.
Maintain Source Tax Data CHE	GPCH_TX_DATA	Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Source Tax Data CHE	Enter and maintain source tax deduction information.

Types of Earnings and Proposed Entry Points

This table describes the different types of earnings that are used for gross inputs and the sample elements with which they are associated:

Earnings Types	Sample Elements
Assign Compensation
Annual salary Monthly salary Appendage hourly salary	CH_ER_01000 ; 1000; C10000 CH_ER_13600
Assign From and To
Meal compensation Representation expenses	CH_ER_40000 or CH_ER_40005
Assign Per Period
Paid hours Gratification Children allowance manually	Payroll element CH_ER_14100 (Grati Gross) Payroll element CH_ER_14500 (Grati Net) Payroll element CH_ER_12500
Assign Per Self Service
Absences full time worker Overtime monthly salary	Absences (see GP Core) CH_ER_13620 - Overtime 125 % (example, begin and end dates)
Interface from Absences
Unpaid vacation Salary shortage in days	CH_AB_U090 CH_AB_U010 Vacation whole day CH_AB_U500 Maternity
Interface from Pension
	CH_PK_D10, CH_PK_D20 CH_PK_D30
Auto Generated
Child allowances Source tax EO-Compensation All Social Insurance deductions	CH_CA_B00 CH_CA_C00 CH_CA_E00 CH_TX_D11 CH_TX_D12 CH_TX_D31

Earnings Types

Sample Elements

Assign Compensation

Annual salary

Monthly salary

Appendage hourly salary

CH_ER_01000 ; 1000;

C10000

CH_ER_13600

Assign From and To

Meal compensation

Representation expenses

CH_ER_40000 or CH_ER_40005

Assign Per Period

Paid hours

Gratification

Children allowance manually

Payroll element CH_ER_14100 (Grati Gross)

Payroll element CH_ER_14500 (Grati Net)

Payroll element CH_ER_12500

Assign Per Self Service

Absences full time worker

Overtime monthly salary

Absences (see GP Core)

CH_ER_13620 - Overtime 125 % (example, begin and end dates)

Interface from Absences

Unpaid vacation

Salary shortage in days

CH_AB_U090

CH_AB_U010 Vacation whole day

CH_AB_U500 Maternity

Interface from Pension

CH_PK_D10,

CH_PK_D20

CH_PK_D30

Auto Generated

Child allowances

Source tax

EO-Compensation

All Social Insurance deductions

CH_CA_B00

CH_CA_C00

CH_CA_E00

CH_TX_D11

CH_TX_D12

CH_TX_D31

13th Month Payments

This section discusses:

Earnings codes.
Eligibility, pay out events, and calculation.

Earnings Codes

13th month payments can be configured yearly or half-yearly. In cases where there is a termination or mid-year hire, the system automatically prorates the earnings amount. The calculation is based on an accumulator. In addition, the system provides a monthly earnings code, which can be used to charge the arrears to your general ledger.

Here are the two new earnings codes:

Earnings	Code	Description
13th month arrears	1200A	Used for general ledger
13th month salary	1200B	Money to the employee

Eligibility, Pay Out Events, and Calculation

The calculation of 13th month payment might be very specific for each branch and company within your organization. Therefore this feature is designed to be very flexible. It enables you to add your own logic in the customer exists that are provided. You can benefit from the framework and add your own logic without increasing the maintenance effort.

Eligibility

The system defines the eligibility to earn 13th month base pay per month in formula CH_ER_FOGCMTH. It is standard that all active employees are eligible for 13th month wages. To adjust eligibility, you can modify the custom exit formula CH_ER_CFOGCMTH.

Pay Out Events

The system defines the pay out event in formula CH_ER_FOGCPAY. It is standard for 13th month wages to be paid out in situations where there is a termination or in the December payroll. To adjust eligibility, you can modify the custom exit formula CH_ER_CFOGCPAY.

Calculation

The CH_ER_13B accumulator defines the earnings that contribute to the 13th month base pay. You can, however, add an employee's earnings to this accumulator. The 13th month wage amount is subject to social contributions and the source tax.

Hourly Payments

This section discusses:

Overview of earnings for overtime payments.
Earnings that use the rate from compensation for code C13600.
Earnings that use the rate from the job hourly rate.
Earnings that use rate in the customer maintained overtime table.
Earnings automatically derived for hourly payments
Other hourly payments.

Overview of Earnings for Overtime Payments

We recommend that customers use the earnings that are described in this section for overtime payments. Swiss payroll provides samples that take the rate from the compensation, job or overtime setup. Furthermore, these earnings were setup to automatically create the mandatory additional earnings that compensate hourly workers for holidays and vacation. To adjust these earnings to the your needs, update the table with overtime pay rates and the two brackets that provide the percentage for holiday and vacation compensation.

Earnings that Use the Rate from Compensation for Code C13600

This section discusses:

CH_ER_13600 – Hourly payment 1.
CH_ER_13610 – Hourly payment 2.
CH_ER_13601 – Hourly payment previous year

CH_ER_13600 – Hourly Payment 1

This table shows the earning, rate type, value, unit type, and value used for the CH_ER_13600 earnings:

Earning	Rate Type	Value	Unit Type	Value
CH_ER_13600 Rate * Unit	Rate Code	CH_ER_C13600 = HR: C13600	Earning/Deduction assignment	Manual entry

Calculation

CH_ER_13600 is the standard earning to calculate hourly payments. The rate can be selected as Net-Rate or Gross-Rate. According to the options that you select, the percentages in the setup table need to be maintained as a rate that includes payment for vacation and holidays. Earnings CH_ER_14010 and CH_ER_14020 are calculated automatically. You can then add them to the salary or just generate them for informational purposes.
Source of value

Hours come from units that are entered manually. The rate comes from rate code C13600 as provided in compensation on the employee level. You can override this rate manually.
Specifics

By virtue of a court act from 2004, a person that is paid on an hourly basis can claim payments for vacation and holidays. By contract it is mandatory that these payments are specified. In case it's not obvious from the contract, the employee can claim these payments on top of the hourly rate. Therefore, it is necessary to display the components that are dedicated to this task. In the delivered DEMO version, the earnings and percentages are shown as net payments, which means they are added to the regular salary (accumulator CH_00_0).

CH_ER_13610 – Hourly Payment 2

This table shows the earning, rate type, value, unit type, and value used for the CH_ER_13610 earning:

Earning	Rate Type	Value	Unit Type	Value
CH_ER_13610 Rate * Unit	Rate Code	CH_ER_C13600 = HR: C13600	Positive input	Manual entry

Similar to CH_ER_13600, the CH_ER_13610 earning code can be used for exceptions and is managed using positive input. CH_ER_13610 may also be used for a regular number of hours for each month and for assignment on earnings and deductions.

CH_ER_13601 – Hourly Payment Previous Year

This table shows the earning, rate type, value, unit type, and value used for the CH_ER_13601 earning:

Earning	Rate Type	Value	Unit Type	Value
CH_ER_13601 Rate * Unit	Rate Code	CH_ER_C13600 = HR: C13600	Positive input	Manual entry

Calculation

The standard earning to calculate hourly payments for the previous year. The rate can be selected as Net-Rate or Gross-Rate. According to the options you select, the percentages in the setup table need to be maintained as a rate that includes payment for vacation and holidays. Earnings CH_ER_14011 and CH_ER_14021 are calculated automatically. You can then add them to the salary or just generate them for informational purposes.
Source of value

Hours come from units that are entered manually. The rate comes from rate code C13600 as provided in compensation on the employee level. You can override this rate manually.
Specifics

See earning CH_ER_13600.

Earnings that use the Rate from the Job Hourly Rate

This section discuses these earnings:

CH_ER_13620 – overtime 100 percent.
CH_ER_13622 – overtime 125 percent.
CH_ER_13624 – overtime 150 percent.

CH_ER_13620 – Overtime 100 Percent

This table shows the earning, rate type, value, unit type, and value used for the CH_ER_13620 earning:

Earning	Rate Type	Value	Unit Type	Value
CH_ER_13620 Rate * Unit	Formal	CH_ER_FO100 = SY.Hourly RT	Positive input	Manual entry

The rate uses the Hourly RT Global Payroll system element.

CH_ER_13622 – Overtime 125 Percent

This table shows the earning, rate type, value, unit type, and value used for the CH_ER_13622 earning:

Earning	Rate Type	Value	Unit Type	Value
CH_ER_13622 Rate * Unit	Variable	CH_ER_FO100 = SY.Hourly RT	Positive input	Manual entry

The rate uses the Hourly RT Global Payroll system element multiplied by 1.25 percent.

CH_ER_13624 – Overtime 150 Percent

This table shows the earning, rate type, value, unit type, and value used for the CH_ER_13624 earning:

Earning	Rate Type	Value	Unit Type	Value
CH_ER_13624 Rate * Unit	Variable	CH_ER_FO100 = SY.Hourly RT	Positive input	Manual entry

The rate uses the Hourly RT Global Payroll system element multiplied by 1.50 percent.

Earnings that use Rate in the Customer Maintained Overtime Table

This section discuses these earnings for vacation and holiday compensation:

CH_ER_14010 – hourly vacation compensation.
CH_ER_14011 – hourly vacation compensation (previous year).
CH_ER_14020 – hourly holiday compensation.
CH_ER_14021 – hourly holiday compensation (previous year).

CH_ER_14010 – Hourly Vacation Compensation

This table shows the earning, rate type, value, unit type, and value used for the CH_ER_14010 earning:

Earning	Rate Type	Value	Unit Type	Value
CH_ER_14010 Basis * %	Accumulator	CH_ER_8010	Formula	As of bracket.

Calculation

Vacation compensation for hourly paid employees.
Source of value

Base is accumulator CH_ER_8010, which accumulates hourly earnings. The standard uses CH_ER_13600 and CH_ER_13610. The percentage uses CH_ER_FO010, which provides a value based on age and the value in the standard bracket CH_ER_BR001. You can override these earnings and use a real vacation plan, however.
Specifics

There is one vacation payment generated based on the sum of hourly earnings within the specified month.

CH_ER_14011 – Hourly Vacation Compensation (Previous Year)

This table shows the earning, rate type, value, unit type, and value used for the CH_ER_14011 earning:

Earning	Rate Type	Value	Unit Type	Value
CH_ER_14011 Basis * %	Accumulator	CH_ER_8010	Formula	As of bracket.

Calculation

Vacation compensation for the previous year for hourly paid employees.
Source of value

The base uses accumulator CH_ER_8011, which accumulates hourly earnings for the previous year. The standard uses CH_ER_13601. The percentage uses CH_ER_FO011 which provides a value based on the previous year's age and the value in the standard bracket CH_ER_BR001. You can override these earnings and use a real vacation plan, however.
Specifics

There is one vacation payment generated for the previous year based on the sum of hourly earnings for the previous year within the specified month.

Note. Depending on age (for previous year plus 1 year) the system assigns vacation entitlements of 20, 25 or 30 days. You can override this in the corresponding customer exit. You can also adjust percentages in cases where the compensation is paid additionally or already included in the payment for overtime earnings.

To make changes, access the Data page by selecting Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Supporting Elements, Brackets, Data. Then select the CH_ER_BR001 element name (hourly vacation component)

CH_ER_14020 – Hourly Holiday Compensation

This table shows the earning, rate type, value, unit type, and value used for the CH_ER_14020 earning:

Earning	Rate Type	Value	Unit Type	Value
CH_ER_14020 Basis * %	Accumulator	CH_ER_8010	Formula	As of bracket.

Calculation

Holiday compensation for hourly paid employees.
Source of value

The base uses accumulator CH_ER_8010, which accumulates hourly earnings. The standard uses CH_ER_13600 and CH_ER_13610. The percentage uses CH_ER_FO022, which provides value based on the value in bracket CH_ER_BR002. You can override this by using a percentage for the real holiday schedule.
Specifics

There is one holiday payment generated based on the sum of hourly earnings within the specified month.

CH_ER_14021 – Hourly Holiday Compensation (Previous Year)

This table shows the earning, rate type, value, unit type, and value used for the CH_ER_14021 earning:

Earning	Rate Type	Value	Unit Type	Value
CH_ER_14021 Basis * %	Accumulator	CH_ER_8010	Formula	As of bracket.

Calculation

Holiday compensation for the previous year for hourly paid employees.
Source of value

The base uses accumulator CH_ER_8011, which accumulates hourly earnings for the previous year. The standard uses CH_ER_13601. The percentage uses CH_ER_FO022 which provides a value based on the value in bracket CH_ER_BR002. You can override this by using a percentage for the real holiday schedule.
Specifics

There is one holiday payment for the previous year that is generated based on the sum of hourly earnings for the previous year within the specified month

Earnings Automatically Derived for Hourly Payments

This section discusses the CH_ER_22000 earning which is used for certain overtime payments.

CH_ER_22000 – Overtime 125 % (GAV)

This table shows the earning, rate type, value, unit type, and value used for the CH_ER_22000 earning:

Earning	Rate Type	Value	Unit Type	Value
CH_ER_22000 Rate * Unit * %	Variable	CH_ER_FO030 = Overtime Pay Rate (Annual RT)	Positive input	Manual entry

The rate equals the overtime pay rate that appears on the Overtime CHE page, where the bracket entry (Annual Salary) equals the Annual RT Global Payroll system element.

Other Hourly Payments

There are more earnings provided that you can use to enter hourly payments. This earnings are in the range between 1000 and 9999 and are provided due to the swissdec certification. Use these earnings to manually input data. They do not create any corresponding compensation, however.

Swissdec Earnings

All earnings as defined in the swissdec guidelines are available within Global Payroll for Switzerland. Earnings are maintained according to the guidelines. You can use them for production without making any changes.

Net to Gross (Gross Up)

Global Payroll for Switzerland supports gross up calculations. It is not an iterative approach. It follows the formulas as provided by the former SUVA (document 1922.d).

Here are the pages you would access to make adjustments for gross up calculations:

Page Name	Object Name	Navigation	Usage
Maintain Social Ins Data CHE	GPCH_SI_DATA	Global Payroll & Absence Mgmt, Payee Data, Social Security/Insurance, Maintain Social Ins Data CHE, Maintain Social Ins Data CHE	Set AHV and ALV status to 2.
Accumulator - Member	GP_ACCUMULATOR_3	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Supporting Elements, Accumulators, Members	Assign net earnings to accumulator CH_NE_02

Gross Up for All Earnings

This is triggered by assigning AHV and ALV a status of 2 – employer pays all on employees social insurance data. Then all contribution for AHV, ALV and UVG are grossed up. Gross up happens by default and the gross up amount is shown in generated earnings CH_NE_XXX.

Gross Up for Dedicated Earnings

This is managed by assigning earnings to the CH_NE_02 accumulator. For testing you might just use the sample earnings CH_ER_15000 and CH_ER_14500. Based on the swissdec certification of this module we provide the standard Gratuity earnings (1201) as a gross up earning. A limitation of using this earning is that it does not include source tax in the gross up.

Assign Gross Up on the Employee ID Level

See the example here:

Maintain Accumulator CH_NE_02

See example here: