Understanding Mass Termination Simulation

Mass termination simulation provides payroll personnel the ability to obtain an estimate of the costs (termination pay) incurred in case of a workforce reduction or layoff.

The simulation is an off cycle process; it leverages the off cycle advance payment functionality that is provided by Global Payroll core architecture to calculate earnings and deductions for terminated payees outside of the normal payroll cycle.

Note that the purpose of the simulation is to provide estimated costs for initiating mass terminations; finalizing of calculated payroll results is not needed and therefore not supported.

Here are the high-level steps for setting up and running mass termination simulation processes:

  1. Define or review the termination setup to be used, which includes the definition of termination versions and associated termination earnings and deductions.

    See Setting Up Termination Versions.

  2. Enter parameters for the mass termination simulation process.

    See Mass Term Simulation Data Page and Payee Detail Page.

  3. Create the off cycle request, review the off cycle request data, and perform calculation.

    Global Payroll off cycle processing functionality provides four off cycle types: manual payments, reversals and corrections, unscheduled payments, and advances. Global Payroll for Brazil uses advances to process requests for mass termination simulations.

    See Initiating Off Cycle Transactions and Off Cycle On Demand Page.

  4. Review payroll results.

    Using the Results by Calendar Group component, you can view the termination simulation results (earnings and deductions, accumulators and supporting elements) of employees included in the process.

    See Viewing Results by Calendar Group.