Understanding eSocial
eSocial is a nationwide program that is led by the Brazilian government to streamline the transmission of HR and payroll-related information from companies to the government in a centralized framework.
Currently, companies doing business in Brazil are required to run and submit multiple reports to different government institutions. These reports capture employment-related data such as employment relationship, hiring, compensation, work hours, absence, terminations, payroll and labor obligations, social security payments and other fiscal impacts. Targeted for different agencies for different purposes, these reports contain duplicate and sometimes dated information.
eSocial is a central system to which all Brazilian businesses are required to report their employment-related and work-related information on a timely manner. It:
Consolidates companies’ labor, social security, and tax information into one single system.
All employment-related and work-related information is stored in a central location, which lowers maintenance costs, increase efficiency and minimizes data discrepancy issues.
Eliminates report errors and increases productivity.
Employers are obligated to provide timely updates to the eSocial system to avoid penalties. To eliminate potential data entry errors, paper forms are no longer supported. Data transmission is done solely electronically to the central system, allowing only the most current information to be available to government agencies that need it.
Allows the government to conduct audits more easily.
Because all employment-related and work-related data is transmitted online to the eSocial system, it becomes easier for the government to monitor employers and make sure that they are fulfilling labor and social security obligations, inspect employment records, and conduct audits more frequently.
The eSocial architecture simplifies the processing of employment information for the Brazilian government and businesses. By digitizing data transmission and maintaining data in a centralized system, eSocial is expected to replace a number of reports (for example, CAT, CTPS, SEFIP, RAIS, CAGED, MANAD and so on) that employers otherwise need to run and submit to respective government authorities for compliance. Employers report their payroll, labor, social security, and fiscal information to eSocial as relevant events occur. Government entities have access to information that is relevant to their scope of work and functions, for example:
Secretaria da Receita Federal do Brasil (RFB) - Brazilian Internal Revenue Service.
Example of information accessible to this entity: Social security contributions and tax withholding.
Ministério do Trabalho e Emprego (MTE) - Ministry of Labor and Employment.
Example of type of information accessible to this entity: Labor rights and benefits.
Ministério da Previdência Social - Ministry of Social Security.
Example of type of information accessible to this entity: Employment bonds and contribution bonds.
Instituto Nacional do Seguro Social (INSS) - Social Security Administration.
Example of type of information accessible to this entity: Employment bonds and contribution bonds.
Caixa Econômica Federal (CEF) - Federal Bank – Unemployment Insurance Fund Bureau.
Example of type of information accessible to this entity: Guarantee Fund for Length of Service (FGTS).
Global Payroll for Brazil provides these features and functionality to support eSocial reporting:
New pages and updates to existing pages in Human Resources and Global Payroll to capture all information required by eSocial.
Identification of transactions in the HCM system that must be reported to eSocial, and the processing of transaction information in preparation for the creation of event-specific files.
Generation of XML report files for identified events based on government-approved event layouts.
Development of web services to submit reports to eSocial and receive report results from eSocial.
Development of a monitoring tool that keeps track of the progress of submitted events, identify errors that occur during the process cycle and take appropriate actions.
Employers are often required to report to eSocial when certain transactions are saved in eSocial-mapped components in their payroll, HR, or even financial systems. The government has identified a list of events and published layout specifications for them. Event layouts are report templates that are used to generate XML reports for events.
Global Payroll for Brazil supports the reporting of events that are specific to payroll and HR.
Events are grouped into these high-level categories:
Basic table events. They include the initial loading, as well as ongoing updates of tables that identify the employer, employees, employment relationships and so on.
For example, loading or update of employer data, job codes, establishments, work shifts and time labor, and so on.
Non-periodic events or labor events.
These are labor-related legal facts between the employer and employees that do not occur on a predefined schedule.
For example, hires, rehires, personal data changes, absence, and so on.
Periodic events.
These are events that occur on a regular basis.
For example, monthly payroll, 13th salary, social security contribution withholding, and so on.
Totaling events.
These are PeopleSoft queries that are used to query social security contribution and income tax withholding information of employees and employers that was reported successfully to the government through periodic events.
Termination events.
They are a subset of non-periodic events, and are used to report information related to terminations of employees and non-employees.
Please refer to the Understanding Events topic for more information about events that are delivered for eSocial reporting.
Oracle delivers a quick start guide (in Portuguese) that walks customers through the process of setting up and implementing eSocial. This document is available for download on My Oracle Support (document ID 1526487.1), and will be updated as deemed necessary.
Video: Image Highlights, PeopleSoft HCM Update Image 18, eSocial Basic Setup and Batch Processes (1)
Video: Image Highlights, PeopleSoft HCM Update Image 23: eSocial Delivery of Periodic Events (3)
Video: Image Highlights, PeopleSoft HCM Update Image 24: eSocial Events Monitor Enhancements (4)
Video: Image Highlights, PeopleSoft HCM Update Image 29: eSocial Health and Safety Events (5)
Video: Image Highlights, PeopleSoft HCM Update Image 37: eSocial S-1070 Event for Global Payroll Brazil (6)
Video: Image Highlights, PeopleSoft HCM Update Image 38: Simplified eSocial (S1.0) (7)
Setup Preparation
Customers perform these tasks to prepare for the implementation of eSocial:
eSocial main setup.
This includes setup steps for activating the eSocial functionality in Global Payroll for Brazil, enabling the events that customers wish to report to the Brazilian government through eSocial, as well as identifying companies and establishments to be included in the program.
Legal code mappings.
This includes the mappings of various setup codes (for example, country, address, dependent type, ethnic group, and so on) between and the PeopleSoft and eSocial systems.
Initial data loading.
This includes the transmission of data about the employer, basic tables, as well active and inactive employees and non-employees. This data must be loaded in the eSocial environment before any labor or periodic events can be submitted.
Initial data is loaded by running a batch process on the eSocial Initial Data Loading page.
In Production
Upon the implementation of the eSocial functionality, PeopleSoft is responsible for reporting to the Brazilian government any eSocial event that occurs for each company included in the program. These events are mostly labor-related (for example, hiring, rehiring, termination, absence, contract change, and personal data change) and payroll-related (for example, compensation and miscellaneous payment), with a few that are defined for supporting the data transmission process and running queries. The schedules for submitting data are different based on the nature of the events, as regulated by the government.
At a high level, the process to support ongoing eSocial reporting includes these tasks:
Record labor and other non-periodic events as they occur. Run batch process to collect and process event information, before it is populated to staging tables.
Run batch processes regularly to record and process periodic events.
Run batch process to generate XML outputs based on staging tables.
Send XML outputs to the government of Brazil through third-party programs.
Monitor eSocial events.