Global Payroll for India Business Processes
Global Payroll for India supports the following business processes:
Establishments.
Establishments are used to identify separate units of a company, based on location. Global Payroll for India provides pages on which you capture establishment information. Pages provided record the head of the establishment, nature of business, whether the establishment is registered under the Factories Act or the Shops and Establishments Act, whether the establishment is covered under the Employee State Insurance (ESI) Act, Workmen's Compensation Act, or both, and ESI, provident fund, professional tax, and income tax registration details.
Allowances.
Companies might provide payees certain types of allowances. Global Payroll for India enables you to process leave travel and medical allowances.
For the leave travel allowance program, you can define the program (including who can be covered for reimbursements), capture the leave travel allowance amount (per payee) for the year, track payee claims details and whether the minimum days of leave have been taken, and track payee balances.
For the medical allowance program, you can define the program (clearly defining the exemption amount that a payee can claim), track payee claims details (while ensuring that the claims in excess of the exemption limit are added to the taxable earnings of the payee), and track payee balances.
Absences.
PeopleSoft Global Payroll delivers predefined rules for processing absences due to privilege leave, sick leave, maternity leave, casual leave, and other reasons. We designed these rules according to India's statutory requirements. You can easily modify many of these rules to reflect absence policies (leave policies) that are specific to your organization or to labor agreements that might be in force for the employees.
We deliver sample values for many absence take and absence entitlement elements.
PeopleSoft delivers predefined sections and process lists for absence processing. You can use these, modify them, or create your own.
See Absence Setup Tasks.
Provident funds.
The provident fund program exists as a method of retirement savings for India's workforce. With Global Payroll for India you can:
Define the type of provident fund chosen by the company (statutory provident fund or recognized provident fund).
Ensure that all payees are registered with a provident fund and capture the personal information for the payee and his or her beneficiaries.
Define the three programs under the provident fund and the calculation methodology for each.
Ensure that the deductions for payee contributions are properly calculated and deducted on a monthly basis.
Ensure that the employer contribution is properly calculated.
Ensure that the monthly contributions are correctly deposited with the proper provident fund authority.
ESI.
ESI is a social security program designed to provide income protection to workers and their dependents when a payee becomes unable to work or when a payee dies. With Global Payroll for India you can ensure that all of the payees are registered per the ESI Act, capture relevant personal information of payees and their dependents, and ensure that the deductions for contributions from payees are deducted from their pay each month.
Reports.
For certain payroll business processes, you need to generate reports to comply with legislative reporting requirements. Such reports are required for processes related to ESI, provident funds, profession tax, income tax, medical allowance, and leave travel allowance. Global Payroll for India provides samples of these for your reporting needs.
The Payee Reports feature of Global Payroll for India provides you with a flexible reporting solution for payroll information. Setup pages are provided that enable you to change the Global Payroll elements that are used in the delivered sample reports. This feature enables you to change the contents of a report without making a change to the program that prints the report.
Additionally, Global Payroll provides generic reporting pages to address additional reporting needs. You create a generic report by defining report parameters such as break levels, sorting, and the rows and columns to be printed on the report. After you define the parameters, you can run the report. At the time you run the report, you can define additional parameters on the run control page to further refine the resulting reports.
Labour Welfare Fund (LWF).
The Indian Ministry of Labour has introduced the concept of Labour Welfare Fund to extend a measure of social assistance to workers in the unorganized sector. With Global Payroll for India, you can ensure that all payees are registered for LWF deductions.
The deductions towards LWF are different for each state and are based on the Active status of the employee on the last day of the month. Enrolling Payees in LWF: The Specify Tax Details IND page is used to enroll employees under LWF. A new field,Eligible for LWF, is introduced to capture employee registration.
Loans and advances.
Many companies in India make loans and advances available to employees. Global Payroll for India enables you to issue loans and advances to payees and then process repayment as deductions over a period of time. With Global Payroll for India you can define the different types of loans that the company provides (such as home loans, car loans, and personal loans), define the repayment schedules that the payee requests based on the type of loan, and ensure that repayment from payees is deducted on a monthly basis and that the monthly repayments are adjusted against the loan balance or the advance balance. The payee has the option of early payment of the loan, commonly known as foreclosure in India. Payment and balance information is easily provided to payees.
Taxes.
Companies must deduct and report on taxes. Global Payroll for India provides functionality to meet legislated tax recording, reporting, and processing requirements for taxes deducted per the Indian Income Tax Act and Profession Tax Act. Refer to the year end processing section later in these topics for more details on reporting.
Banking.
The banking process uses input from Global Payroll setup, payee, and result tables. The process creates the data required for direct deposit into output tables. This includes the Employee, Account number, Net Pay, and other fields. This process must be run after the payroll run. We deliver specifications to a sample financial institution as a guide for you to use for the financial institution.
A report and a flat file to be sent to the bank are generated from these output tables.
The preceding process can be run separately for reimbursements such as medical or leave travel allowance. If the earnings for reimbursements are nontaxable, then the gross and net amounts are the same.
For other types of pay (such as bonuses), you follow the same process as for a regular payroll, which you run separately.
Payslips.
The Global Payroll for India payslip solution provides you with a series of features including payslip definition pages, run control pages, and a Structured Query Report program.
The data used in the production of the payslips is generated by the pay calculation process and resides in various result tables. Additional data from PeopleSoft HR and Global Payroll are also used. While some customers have their own pay advice designs, we provide a generic payslip that you can modify to meet your needs.
Year end processing.
One of the tasks that you must undertake in the annual payroll cycle is year end processing. We provide functionality to meet the requirements for year end recording, reporting, and processing. Year end reports are generated in formats for annual reporting required under legislation such as the Factories Act, ESI Act, Provident Fund Act, Profession Tax Act, Minimum Wages Act, and Income Tax Act. You can easily provide year end information to both the regulatory authorities and the payees at the close of the financial year.