Understanding Global Payroll Core Functionality in Mexico

This topic discusses:

  • 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 Mexico, all retro is handled with the forwarding method. 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 following data.

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 including absence take-related changes:

  • Positive input

  • Overtime

  • Pay group

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.

Making Retro SDI Changes in Mexico

In Global Payroll for Mexico, the Process SDI MEX calculation process generates retro triggers for all employees for changes in the SDI, such as changes in minimum wage, SDI, or seniority anniversary.

In Mexico, these types of accumulators are used:

  • Annual accumulators to calculate the annual adjustment for taxes and PTU (profit-sharing).

  • Monthly accumulators to calculate taxes and social security quotas.

  • Weekly accumulators to calculate overtime.

Note: For every earning and deduction you define, you should carefully determine if it needs to have its own Month to Date and Year to Date accumulators. Avoid creating unnecessary accumulators, since this may affect performance. Most of the accumulators need to have the company defined as User Key 1.

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 and element segmentation. 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. 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.

In Global Payroll for Mexico, changes in pay group or pay entity produces a period segmentation.

Global Payroll for Mexico delivers some segmentation; however, you can alter these depending on your business needs.

Creating Earnings and Segmentation

Whenever a salary earning is created, you must enter it on the list of elements that will be sliced by the element segmentation that was defined earlier.

To enter the salary earnings on the list:

  1. Go to the Segmentation Event Definition page in the core application.

  2. Select the COMPRATE event.

  3. Find the elements for Mexico, under Country = MEX.

  4. Add the new salary earnings.

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 that 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 Mexico delivers some triggers; however, you can alter these depending on your business needs.

Delivered Iterative Triggers

This table lists iterative triggers that are delivered with Global Payroll for Mexico.

Trigger

Changes to:

ADDRESSES

Employee's address record.

COMPENSATION

Employee's compensation record.

CONTRACT_DATA

Employee's contract data record.

EMPLOYMENT

Employee's employment record.

GPMX_REVERSAL

Employee's results reversal record.

GP_ABS_EVENT

Employee's absence records.

GP_ABS_OVRD

Employee's absence records.

GP_OFFCYCL_A_VW

Employee's off-cycle record.

GP_OFFCYCL_C_VW

Employee's off-cycle record.

GP_OFFCYCL_M_VW

Employee's off-cycle record.

GP_OFFCYCL_U_VW

Employee's off-cycle record.

GP_PI_MNL_DATA

Employee's positive input records.

GP_PI_MNL_SOVR

Employee's positive input supporting element override record.

GP_PYE_OVRD

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

GP_PYE_OVR_SOVR

Employee's payee element assignment supporting element override record.

GP_PYE_SECT_DTL

Employee's payee section detail record.

GP_RTO_TRGR_VW

Retro trigger record.

GP_SEG_TRGR_VW

Segmentation trigger record.

JOB

Employee's job record.

JOB_JR

Employee's Mexico-specific job record.

PERSON

Employee's personal data record.

PERS_DATA_EFFDT

Employee's personal data effective date record.

PERS_SMOKER

Employee's personal data smoker record.

PER_ORG_INST

Employee's personal data organizational institution record.

SCH_ASSIGN

Employee's schedule calendar assignment record.

SCH_MNG_SCH_TBL

Employee's workday overrides record.

TL_PAYABLE_TIME

Employee's Time and Labor payable time record.

WKF_CNT_TYPE

Employee's workforce contract type record.

Delivered Segmentation Trigger

This table lists the segmentation trigger that is delivered with Global Payroll for Mexico.

Trigger

Changes to:

JOB

Employee's job record.

Delivered Retro Triggers

This table lists retro triggers that are delivered with Global Payroll for Mexico.

Trigger

Changes to:

COMPENSATION

Employee's compensation record.

GPMX_REVERSAL

Employee's results reversal record.

GP_ABS_EVENT

Employee's absence records.

GP_ABS_OVRD

Employee's absence records.

GP_PI_MNL_DATA

Employee's positive input records.

GP_PI_MNL_SOVR

Employee's positive input supporting element override record.

GP_PYE_OVRD

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

GP_PYE_OVR_SOVR

Employee's payee element assignment supporting element override record.

GP_PYE_SECT_DTL

Employee's payee section detail record.

JOB

Employee's job record.

SCH_ASSIGN

Employee's schedule calendar assignment record.

Segmentation Triggers with Earning and Deduction Assignments

In Global Payroll you can define segmentation triggers only for effective dated records, with one exception: you can define segmentation triggers for the begin and end dated earning and deduction assignment record GP_PYE_OVRD. This exception enables you to assign an earning or deduction to a payee on the Element Assignment by Payee (GP_ED_PYE) or Payee Assignment by Element (GP_ED_ELEM) components, and segment (and prorate) the element when the assignment begin date comes after the pay period begin date, and/or the assignment end date comes before the period end date.

See Understanding Trigger Definition Setup.

See Payee Overrides and Segmentation.

In Global Payroll, you can apply rounding to a 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 Mexico delivers these rounding rules:

  • Round to Nearest 1 decimal for all accumulators, earnings, and deductions.

  • Truncate decimals for accumulators, earnings and deductions that are only acceptable as integer values. For example, to determine the number of vacation days that a payee can take.