PeopleSoft Global Payroll for Mexico 9.1 PeopleBook

Setting Up Terminations

This section provides an overview of termination setup and discusses how to:

Define termination versions and action/reasons.
Create new termination earnings and deductions.

Note. Processing terminations is discussed in another chapter in this PeopleBook.

See Also

Understanding Termination Setup

In Global Payroll for Mexico, the process used to trigger termination payments is based in a termination version. A termination version is a collection of actions and reasons that can trigger specific termination earnings and deductions.

In Global Payroll for Mexico, both payees and termination earnings and deductions are associated with termination versions. When you define a termination earning or deduction, you link it to one or more termination versions. When you terminate a payee, the payee is automatically linked to the termination version representing the action and the reason for his termination. In this way, the system can identify and process only those earnings and deductions associated with the same termination version.

Elements Used in the Termination Process

This table lists the elements used in the process that triggers termination pay.

Element	Description
LF GC VER FINIQ	Generation control element that determines whether earnings or deductions should be paid in response to a payee's termination. This element is based on the generation control formula LF FM VER FINIQ GC.
LF VR CRED SAL	Delivered variable that defines whether the salary credit option should be considered for the termination ISR (tax) calculation. This variable defaults to "Y" but can be overridden at the payee or Calendar ID level to avoid the salary credit use in the FD FM TOT ISR SDO formula.
LF VR MOTIVO BAJA	Delivered variable that contains the termination reason.
LF VR VER FINIQ 01, LF VR VER FINIQ 02, LF VR VER FINIQ 03, LF VR VER FINIQ 04, LF VR VER FINIQ 05, LF VR VER FINIQ 06, LF VR VER FINIQ 07, LF VR VER FINIQ 08, LF VR VER FINIQ 09, LF VR VER FINIQ 10	These 10 delivered variables represent different termination versions and are linked to different earnings and deductions to identify which earnings or deductions should be paid for each combination of termination actions and reasons.
LF VR VER FINIQ EE	Delivered variable that contains the termination version (representing the termination action and reason) for a terminated payee. Note. Termination versions are defined on the Termination Version and Action/Reasons MEX pages.
WORKFORCE_SYNC	Service operation that enables the delivered Global Payroll variables LF VR VER FINIQ EE and LF VR MOTIVO BAJA to be inserted in the supporting element override table at the payee level (thus associating a terminated payee with the termination version that applies to the payee's termination). The handler/application class that inserts these variables is GPMX_Termination_version_job handler and associated application class.

Steps for Triggering Termination Pay

These elements are used to trigger termination pay, as outlined here:

When a payee is terminated or laid off and the appropriate action/reason codes are entered on the Job Data pages in PeopleSoft HR, the system uses the service operation WORKFORCE_SYNC to insert the Global Payroll variables LF VR VER FINIQ EE (containing the termination version) and LF VR MOTIVO BAJA (containing the termination reason) as supporting element overrides at the payee level (Global Payroll & Absence Mgmt, Payee Data, Create Overrides, Supporting Elements). In other words, the service operation links the payee to the termination version (the action and reason combination) that applies to the payee's specific termination.

Note. The only actions capable of triggering the service operation used to insert the variables LF VR VER FINIQ EE and LF VR MOTIVO BAJA in the supporting element override table at the payee level are TER (termination), LOF (layoff), and COM (completion).
Just as each terminated payee is linked to a termination version , each termination earning or deduction is linked to a termination version (using the variables LF VR VER FINIQ 01 through LF VR VER FINIQ 10) on the Supporting Elements Override page of the Earnings component or Deductions component.
When a payee is terminated or laid off, Global Payroll for Mexico uses the generation control element LF GC VER FINIQ (in combination with the formula LF FM VER FINIQ GC) to include in the payee's final payment only those earnings and deductions that are part of the termination version associated with the payee in Step 1. This is done by means of the following comparison:
- When you run a payroll, the generation control element (which is linked to each delivered termination earnings or deduction on the Calculation page of the Earnings component or Deductions component) checks the payee's termination version, as represented by the variables LF VR VER FINIQ EE (containing the termination version) and LF VR MOTIVO BAJA (containing the termination reason).
- At the same time, the generation control element checks the termination versions associated with each delivered termination earnings and deduction element on the Supporting Elements Override page of the Earnings component or Deductions component. If the payee's termination version (represented by the variables LF VR VER FINIQ EE and LF VR MOTIVO BAJA) equals the termination version (represented by the variables LF VR VER FINIQ 01 through LF VR VER FINIQ 10) associated with an earnings or deduction on the Supporting Elements Override page, the earnings or deduction can be processed.

Setting Up Frequently Used Supporting Element Overrides

Defining Earning and Deduction Elements

Defining Termination Versions and Action/Reasons

To define termination versions, use the Versions MEX (GPMX_TERM_VERSION) component. To define termination action/reasons, use the Action/Reasons MEX (GPMX_TERM_ACTN_RSN) component.

This section provides an overview of termination versions and discusses how to:

Define termination versions.
Specify actions and reasons.

Understanding Termination Versions

Global Payroll for Mexico groups the qualifying actions and reasons for making termination payments into termination versions. Different termination action and reason combinations trigger different sets of termination earnings.

To define termination versions and then trigger the payments associated with a termination version, you must do the following:

Define your termination versions on the Versions MEX page.
Define the associated actions/reasons that will trigger payment on the Action/Reasons MEX page.
On the Job Data pages in HR, specify Termination, Completion, or Layoff as the action and enter a corresponding reason.

When you specify Termination, Completion, or Layoff as the action in combination with a qualifying reason, termination pay will be processed for the terminated or laid off payees—as long as the termination or layoff action/reason combination is recognized, by generation control, as valid for triggering termination payments.

See Increasing the Workforce.
Generate a termination letter using the Termination/Layoff Letter page.

Note. The Termination/Layoff Letter page is documented in another chapter in this PeopleBook.

See Also

Processing Terminations

Pages Used to Define Termination Versions and Action/Reasons

Page Name	Definition Name	Navigation	Usage
Versions MEX	GPMX_TERM_VERSION	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Terminations, Versions MEX, Versions MEX	Define termination versions.
Action/Reasons MEX	GPMX_TERM_ACTN_RSN	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Terminations, Action/Reasons MEX, Action/Reasons MEX	Define qualifying actions and reasons for triggering termination pay.

See Also

Defining Country Data

Defining Termination Versions

Access the Version MEX page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Terminations, Versions MEX, Versions MEX).

Termination Version

Name and describe the termination version. This version name enables you to group all of the qualifying actions and reasons for making a set of termination payments.

Specifying Actions and Reasons

Access the Action/Reasons MEX page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Terminations, Action/Reasons MEX, Action/Reasons MEX).

Action and Action Description

Specify the action corresponding to a termination version that triggers termination pay in combination with a specific reason. The system displays the description of the selected action.

Reason and Description

Specify the reason corresponding to a termination version that triggers termination pay in combination with the specified action. The system displays the description of the selected reason.

Termination Version

Indicate the termination version for the action and reason combination that you specified trigger termination pay.

Note. Termination versions are assigned at the action and reason level. When a payee is terminated, a service operation inserts the version as a supporting element override at the payee level. This is explained in detail in another chapter in this PeopleBook.

See Understanding Termination Payments.

Termination/Layoff

Specify whether the reason for the payee's departure is Layoff or Termination.

Note. This information is inserted as a supporting element override (variable) at the payee level and is used in formulas that trigger and process termination payments. For example, the seniority premium is always paid for layoffs, but it is paid for a termination only if the payee has 15 or more years of seniority.

Creating New Termination Earnings and Deductions

This section provides an overview of creating new termination earnings and deductions and discusses how to:

Associate earnings and deductions with termination versions.
Define earnings and deductions to pay or deduct as part of a termination version.
Link generation control formulas to earnings and deductions.
Define generation control formulas.
Define variables to represent termination versions.

Understanding How to Create New Termination Earnings and Deductions

PeopleSoft delivers a number of sample termination earnings and deductions. You can modify these elements to fit your needs, or create new termination elements using the delivered elements as your guide.

If you create new termination earnings and deductions, you must associate them with the delivered termination versions to which they correspond.

Note. The sample termination earnings and deductions are discusses in another chapter in this PeopleBook.

See Processing Terminations.

Earnings and Deductions That are Paid as Part of Each Termination Version

To specify the earnings and deductions that should be paid or deducted as part of each termination version, you have two options:

Using the Supporting Elements Override page of the Earnings component or Deductions component in the core application, associate any of the 10 delivered variables (LF VR VER FINIQ 01 through LF VR VER FINIQ 10) with each new earnings or deduction element. These variables represent up to 10 different termination versions.
Using the Earn/Dedn SOVRs MEX page in Global Payroll for Mexico, define which earnings and deductions should be paid or deducted as part of each termination version. This page enables you to insert a supporting element override (SOVR) at the earnings or deduction level.

See Defining Earning and Deduction Elements.

See Defining Earnings.

Override Values for Variables Associated with the New Earnings and Deductions

To specify the override values of the variables (LF VR VER FINIQ 01–10) you associated with the new earnings and deduction elements, you have two options:

Use the Values tab on the Supporting Elements Override page.

On this tab, specify which termination versions defined on the Termination Versions page will be represented by the variables LF VR VER FINIQ 01−10.
Use the Earn/Dedn SOVRs MEX page in Global Payroll for Mexico.

Paying New Earnings and Deductions When a Payee is Terminated

To pay the new earnings or deduction only when a payee is terminated and only as part of its corresponding termination version, assign the generation control element LF GC VER FINIQ to the earnings or deductions on the Calculation page of the Earnings component or Deductions component using the Generation Control field.

Creating More than 10 Termination Versions

To create more than 10 termination versions, complete these steps using the delivered termination elements as your model:

Define a new termination version on the Termination Version and Action/Reasons MEX pages (VER11, for example).
Create additional variables using the Variable component for each termination version in excess of 10 (LF VR VER FINIQ 11, for example).
Using the Supporting Elements Override page of the Earnings component or Deductions component in the core application, add the new variable to all of the earnings and deductions that you want to make part of this version.

Note. Remember to set the value of this variable to VER11 to represent the new termination version.
Modify the LF GC VER FINIQ generation control formula to include this new variable as part of the comparison process that determines whether the variable LF VR VER FINIQ EE, inserted as a supporting element override at the payee level, equals the new variable that you created.

This is a generation control formula before and after the modification:

Before Modification:

If LF VR VER FINIQ EE <> " And LF VR VER FINIQ EE In (LF VR VER FINIQ 01 LF VR VER FINIQ 02 LF VR VER FINIQ 03 LF VR VER FINIQ 04 LF VR VER FINIQ 05 LF VR VER FINIQ 06 LF VR VER FINIQ 07 LF VR VER FINIQ 08 LF VR VER FINIQ 09 LF VR VER FINIQ 10 ) Then

1 >> LF FM VER FINIQ GC

Else

0 >> LF FM VER FINIQ GC

Endif

After Modification:

If LF VR VER FINIQ EE <> " And LF VR VER FINIQ EE In (LF VR VER FINIQ 01 LF VR VER FINIQ 02 LF VR VER FINIQ 03 LF VR VER FINIQ 04 LF VR VER FINIQ 05 LF VR VER FINIQ 06 LF VR VER FINIQ 07 LF VR VER FINIQ 08 LF VR VER FINIQ 09 LF VR VER FINIQ 10 LF VR VER FINIQ 11) Then

1 >> LF FM VER FINIQ GC

Else

0 >> LF FM VER FINIQ GC

Endif

Pages Used to Create New Termination Earnings and Deductions

Page Name	Definition Name	Navigation	Usage
Supporting Element Overrides	GP_ELM_DFN_SOVR	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Earnings, Supporting Element Overrides Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Deductions, Supporting Element Overrides	Associate earnings and deductions with termination versions.
Earn/Dedn SOVRs MEX (earnings/deductions SOVRs MEX)	GPMX_ERNDED_SOVR	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Earn/Dedn SOVRs MEX, Earn/Dedn SOVRs MEX	Define which earnings and deductions should be paid or deducted for each termination version.
Calculation	GP_ERN_DED_CALC	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Earnings, Calculation Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Deductions, Calculation	Associate a generation control element with an earnings or deduction element.
Field-by-Field Definition	GP_FORMULA1	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Supporting Elements, Formulas, Field-by-Field Definition	Define a generation control formula.
Variables – Definition	GP_VARIABLE	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Supporting Elements, Variables, Definition	Define a new variable to represent a termination version.

Associating Earnings and Deductions with Termination Versions

Access the Supporting Element Overrides page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Earnings, Supporting Element Overrides).

See Setting Up Overrides.

Defining Earnings and Deductions to Pay or Deduct as Part of a Termination Version

Access the Earn/Dedn SOVRs MEX (earnings/deductions SOVRs MEX) page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Earn/Dedn SOVRs MEX, Earn/Dedn SOVRs MEX).

See Setting Up Frequently Used Supporting Element Overrides.

Linking Generation Control Formulas to Earnings and Deductions

Access the Calculation page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Earnings, Calculation).

See Defining Earning and Deduction Elements.

Defining Generation Control Formulas

Access the Field-by-Field Definition page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Supporting Elements, Formulas, Field-by-Field Definition) for formulas.

See Defining Calculation Elements.

Defining Variables to Represent Termination Versions

Access the Definition page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Supporting Elements, Variables, Definition) for variables.

See Defining Calculation Elements.

Action and Action Description	Specify the action corresponding to a termination version that triggers termination pay in combination with a specific reason. The system displays the description of the selected action.
Reason and Description	Specify the reason corresponding to a termination version that triggers termination pay in combination with the specified action. The system displays the description of the selected reason.
Termination Version	Indicate the termination version for the action and reason combination that you specified trigger termination pay. Note. Termination versions are assigned at the action and reason level. When a payee is terminated, a service operation inserts the version as a supporting element override at the payee level. This is explained in detail in another chapter in this PeopleBook. See Understanding Termination Payments.
Termination/Layoff	Specify whether the reason for the payee's departure is Layoff or Termination. Note. This information is inserted as a supporting element override (variable) at the payee level and is used in formulas that trigger and process termination payments. For example, the seniority premium is always paid for layoffs, but it is paid for a termination only if the payee has 15 or more years of seniority.