Using Core Functionality in Brazil

This topic describes how to use the following core PeopleSoft Global Payroll features in your Brazilian payroll system:

  • Retroactivity

  • Accumulators

  • Segmentation

  • Triggers

  • Rounding rules

  • Rate codes

Retroactivity is the process of going back in time and recalculating prior calendars because changes were made after the original calculation was run. When retroactive processing occurs for a payee, the system recalculates each element generated for the payee. The difference between these results is the retro delta.

In Global Payroll, there are two methods for calculating retro:

  • Corrective

  • Forwarding

Note: In Brazil, all retro is handled with the forwarding method to comply with Brazilian legislation that requires all retroactive payments to be taxed in the current period. This includes both the Default retro method and the On Conflict retro method.

With the forwarding method, payments are calculated in the respective periods, but balance accumulators for the period are not updated. Only the segment accumulators are updated. Deltas are created for each earning, deduction, and segment accumulator used in the process list. These deltas, which are identified on the Retro Process Overrides Page, are forwarded to the current period.

The system generates a retro trigger every time you enter a change on the data described in the following sections.

Changes in the Employee's Data

Changes in employee data include compensation rate-related changes:

  • Status.

  • Compensation frequency.

  • Standard hours.

  • Pay system flag.

  • Action for retroactive hire.

  • Action for retroactive termination.

Changes in Other Data

Changes in other data include absence take-related changes:

  • Positive input

  • Pay group

Earnings and deductions are recalculated and a difference results.

Note: Not all earnings or deductions will have an adjustment for retro. Some of the earnings and deductions are forwarded to one earning or deduction, which then appears as a single adjustment in the current period.

In Brazil, the following types of accumulators are used:

  • Annual accumulators for annual reports and average salary (when average salary is based in the current year).

  • Monthly accumulators for tax calculation and social security fees.

  • Custom accumulators to store absences that affect the weekly days-off and holidays payments.

In Global Payroll, if there is a change to employee details within a pay period that might affect calculation, such as a pay rate increase, the calculation creates two slices. One slice uses the details before the change and the other slice uses the details after the change.

Global Payroll provides two types of segmentation: period segmentation or full segmentation and element segmentation or slice. Period segmentation occurs when more than one gross-to-net calculation is required. Element segmentation occurs when there is a change in the rate that affects the calculation of one or more elements. In other words, element segmentation occurs when you want to calculate a select set of earnings or deductions multiple times, but not the entire gross to net calculation.

Note: Global Payroll for Brazil does not utilize element segmentation.

In Global Payroll for Brazil, the following items produce a period segmentation:

  • Changes in eligibility group.

  • Changes in pay entity.

  • Changes in pay group.

  • Hirings and terminations held in the calendar.

Global Payroll for Brazil delivers some segmentation; however, you can alter the delivered segmentation events and add or delete segmentation events depending on your business needs.

Triggers are used to detect online changes to data that should result in some type of system action. Examples of common data changes that might use triggers include a new employee hire or a change in pay rate.

Global Payroll provides three types of triggers:

  • Iterative − tells the system to process an employee for the current period.

  • Segmentation − tells the system to segment a period or element.

  • Retro − tells the system to perform retro processing.

Note: You must first set up an iterative trigger to tell the system when an event occurs, it should perform the desired action. After that, you can use a trigger to process an employee, perform segmentation, or perform retro processing.

Global Payroll for Brazil delivers some triggers; however, you can alter the delivered triggers and add or delete trigger setups depending on your business needs.

Delivered Iterative Triggers

The following table lists the iterative trigger setups that are delivered with Global Payroll for Brazil:

Changes to:

Trigger

Employee's employment record

EMPLOYMENT

Employees job records

JOB and JOB_JR

Employee's compensation record

COMPENSATION

Employee's personal data record

PERSONAL_DATA

Employee's contract data record

CONTRACT_DATA

Employee's positive input records

GP_PI_MNL_DATA

Employee's positive input supporting element override record

GP_PI_MNL_SOVR

Employee's payee override record (earnings and deductions assignments)

GP_PYE_OVRD

Employee's payee element assignment supporting element override record

GP_PYE_OVR_SOVR

Employee's payee section detail record

GP_PYE_SECT_DTL

Employee's personal data effective date record

PERS_DATA_EFFDT

Employee's schedule calendar assignment record

SCH_ASSIGN

Employee's workday overrides record

SCH_MNG_SCH_TBL

Employee's workforce contract type record

WKF_CNT_TYPE

Employee's absence records

GP_ABS_EVENT, GP_ABS_OVRD, etc.

In Global Payroll, you can apply rounding to any component of an earning or deduction, the resolved amount of an earning or deduction, or within a formula. Rounding is applied to each of the components first before the resolved amount is rounded. Rounding is applied after proration rules have been applied.

Global Payroll for Brazil does not deliver country-specific rounding rules.

Global Payroll for Brazil supports the following types of salaries:

  • Monthly

  • Weekly

  • Daily

  • Hourly

Global Payroll for Brazil delivers the following HR rate codes to support the listed salaries:

Rate Code

Description

KRH

Hourly

KRM

Monthly