Setting Up Termination Payments Calculation

Page Name	Definition Name	Usage
Earnings Name Page	GP_PIN	Name the element (for example, the demo data uses TERM PAY) and define its basic parameters. The earning will be set up as amount, with CN FM TERM PAY set as the amount type. This will add to the accumulators GROSS and TAXABLE NORMAL SAL. It will also enable payee override so that the termination pay can be entered rather than calculated.
Earnings - Calculation Page	GP_ERN_DED_CALC	Define calculation rules for the earnings element. Set the Calculation Rule value to Amount, the Amount Type value to Formula - Monetary and Decimal, and the Amount Element value to CN FM TERM PAY.
Earnings - Rounding/Proration Page	GP_ERN_DED_RND	Specify rounding and proration options for the components of the earnings element by selecting Use Pay Group Rounding in the Rounding Option - Resolved Amount field.
Earnings - Auto Generated Accumulators Page	GP_AUTOGEN_ACUM	Define characteristics of automatically generated accumulators for the earnings element.
Earnings - Accumulators Page	GP_ERN_DED_AC_ADDL	Add the earnings accumulator elements CHN GROSS and TAXABLE NORMAL SAL with the accumulator signs of Add.
Deduction Name Page	GP_PIN	Name the element (for example, the demo data uses TERM DED) and define its basic parameters. The deduction is set up as an amount, with CN FM TERM DED set as the amount type and subtracts from the accumulator GROSS. Payee override is enabled so that the termination deduction can be entered rather than calculated.
Deductions - Calculation Page	GP_ERN_DED_CALC	Define calculation rules for the deductions element. Set the Calculation Rule value to Amount, the Amount Type value to Formula - Monetary and Decimal, and the Amount Element value to CN FM TERM DED.
Deductions - Rounding/Proration Page	GP_ERN_DED_RND	Specify rounding and proration options for the components of the deductions element by selecting Use Pay Group Rounding in the Rounding Option - Resolved Amount field.
Deductions - Accumulators Page	GP_ERN_DED_AC_ADDL	Add the deductions accumulator element CHN GROSS with the accumulator sign of Subtract.
Section Name Page	GP_PIN	Add the earning TERM PAY and the deduction TERM DED.
Element Group Members Page	GP_ELEMENT_GROUP	Add the earning and deduction elements to the CN EG TERMINATION element group.
Variable Name Page	GP_PIN	Define termination variables.
Formula Name Page	GP_PIN	Define termination formulas.
Text Definition Page	GP_FORMULA_TEXT	View or modify formula text for CN FM TERM PAY and CN FM LVE TERM formulas.

Use the demo data provided by PeopleSoft Global Payroll, along with greater background detail provided in relevant topics in PeopleSoft Global Payroll to set up termination payments calculation.

Upon termination, the employee or employer must give notice. If this notice is not sufficient, then the termination payment process considers a Payment in Lieu of Notice. You indicate this by entering the number of days notice in the variable CN VR DAYS NOTICE using the payee supporting element override. The amount calculated can be either an earning or a deduction. If the employee (E) has instigated the termination, then the amount calculated is considered a deduction. The variable CN VR NOTICE FLAG becomes E by default. If, however, the employer (R) has terminated the employee, then the amount is an earning. You indicate this by setting the variable CN VR NOTICE FLAG to R using the payee supporting element override.

As part of the calculation of Payment in Lieu of Notice, any outstanding annual leave balance (VAC_ENT_BAL) is also paid.

Define the following termination variables:

Variable	Description
CN VR DAYS NOTICE	Days Short Notice Period. This is entered as a payee override as part of the termination process.
CN VR NOTICE FLAG	EE or ER Notice Flag, default of E. This indicates that the type of payment is employee. If the payment is employer, than this variable is set to R using payee override as part of the termination process.

Define the following termination formulas:

Formula	Description
CN FM TERM PAY	Invoked from TERM PAY earning, this formula calculates the Payment in Lieu of Notice by Employee (R). It is a pretax earning for the employee. Enter the number of days notice using PI. It calculates the leave balance outstanding, calling CN FM LVE TERM. If the variable CN VR NOTICE FLAG = R (employer instigated termination), then it calculates: Payment = Monthly Rate/Numbers of day in a month × number of short days notice It adds the amount calculated for the leave and the amount calculated for the notice period and places the result in CN FM TERM PAY.
CN FM LVE TERM	Called from CN FM TERM PAY, this formula checks whether the employee has a leave balance (VAC_ENT_BAL), then calculates: Payment = Monthly Rate/Numbers of day in a month × Leave Balance
CN FM TERM DED	Invoked from TERM DED deduction, this formula calculates the Payment in Lieu of Notice by Employee (E). It is a pretax deduction for the employee. You enter the number of days using PI. If CN VR NOTICE FLAG = E (employee instigated termination). Then the system calculates: Payment = Monthly Rate/Numbers of day in a month × number of short days notice

Formula

Description

CN FM TERM PAY

Invoked from TERM PAY earning, this formula calculates the Payment in Lieu of Notice by Employee (R). It is a pretax earning for the employee. Enter the number of days notice using PI. It calculates the leave balance outstanding, calling CN FM LVE TERM. If the variable CN VR NOTICE FLAG = R (employer instigated termination), then it calculates:

Payment = Monthly Rate/Numbers of day in a month × number of short days notice

It adds the amount calculated for the leave and the amount calculated for the notice period and places the result in CN FM TERM PAY.

CN FM LVE TERM

Called from CN FM TERM PAY, this formula checks whether the employee has a leave balance (VAC_ENT_BAL), then calculates:

Payment = Monthly Rate/Numbers of day in a month × Leave Balance

CN FM TERM DED

Invoked from TERM DED deduction, this formula calculates the Payment in Lieu of Notice by Employee (E). It is a pretax deduction for the employee. You enter the number of days using PI. If CN VR NOTICE FLAG = E (employee instigated termination). Then the system calculates:

Payment = Monthly Rate/Numbers of day in a month × number of short days notice

Setting Up Termination Payments Calculation

Pages Used to Set Up Termination Payments Calculation

Understanding the Termination Payments Calculation Setup

Defining Termination Variables

Defining Termination Formulas