Understanding Share Scheme Administration

Before you can enter and process share scheme contributions, you must:

• Set up share scheme types, share scheme limits, and share scheme definitions.

• Set up your processing structure to include share scheme processing.

  Two sections are delivered for share schemes that are included in the payroll process list. You can use the delivered structure or create your own sections and process lists.

These deduction elements are delivered for share scheme contributions that you can use as a basis when creating your own elements:

• SS DD SVE AA (share save actual amount).

  Use this deduction for the actual amount deducted for the pay period. Depending on payees' level of net pay, the actual amount deducted may differ from the contribution defined on the Save page in the Assign Share Scheme GBR component.

• SS DD SVE NA (share save normal amount).

  Use this deduction for the full contribution for the pay period if you need to record and report the full contribution due as well as the actual amount deducted. This is optional. The amount is defined at payee level on the Save page.

• SS DD BUY AA (share buy actual amount).

  Use this deduction for the actual amount deducted for share buy contributions, where the contribution is based on a fixed amount. Depending on payees' net pay, the actual amount may differ from the contribution defined on the Buy page in the Assign Share Scheme GBR component.

• SS DD BUY NA (share buy normal amount).

  Use this deduction for the full contribution for the pay period if you need to record and report the full contribution due as well as the actual amount deducted. This is optional. This amount is defined at payee level on the Buy page.

• SS DD BUY AP (share buy actual percentage).

  Use this deduction for the actual percentage of earnings that is deducted for share buy contributions, where the contribution is based on a percentage. Depending on payees' net pay, the percentage actually deducted may differ from the contribution defined on the Buy page in the Assign Share Scheme GBR component.

The deductions that are used for share scheme deductions are specified on the Define Share Schemes GBR page. Your organization may use different deductions for each share scheme ID or use the same deduction for multiple share schemes.

These earnings elements are delivered for share scheme refunds:

• SS ER SVE CR (share save contribution return).

  Use this earning for refunding payees' contributions and bonus amounts. This earning is not taxable because the contributions are post-tax deductions.

• SS ER SVE RB (share save residual balance).

  Use this earning for refunding any balance that remains after purchasing shares. This earning is not taxable because the contributions are post-tax deductions.

• SS ER BUY CR (share buy contribution return).

  Use this earning for refunding payees' contributions. This may occur when the employee leaves the scheme and deductions are continued after the stop date due to late notification. This earning is taxable because the contributions are pre-tax deductions.

• SS ER BUY RC (share buy residual cash).

  Use this earning for refunding any balance that remains after purchasing shares. This earning is taxable because the contributions are pre-tax deductions.

• SS ER BUY TX (share buy taxable sale).

  Use this earning to record share buy sales that are subject to tax.

• SS ER SVE NT (share buy non-taxable sale).

  Use this earning to record share buy sales that are non-taxable.

There is no automatic processing associated with these earnings. If you want to process refunds use positive input to specify the payee and amount.

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for the United Kingdom. Instructions for running the query are provided in the PeopleSoft Global Payroll product documentation.