Understanding Core Functionality in Global Payroll for China

This topic discusses:

  • Payment keys

  • Retroactivity

  • Segmentation

  • Rounding rules

  • Triggers

Note: Suffixes that are used in Global Payroll for China are discussed in this documentation.

Payment keys are used with forwarding retroactivity to keep deltas separate in the current pay period. When a payment key exists for recalculated periods and deltas are forwarded to the current period, the system runs a separate gross-to-net calculation for that payment key, thereby creating an additional GP_PYE_SEG_STAT record.

Global Payroll for China uses Company as a payment key.

The system generates a retroactive trigger every time you enter a change to the following data:

  • Pay rate changes.

  • Absences.

  • Positive input.

  • Earning and deduction assignments.

  • Schedule assignments.

  • Employee actions such as hire, termination, or transfer.

  • Standard hours changes.

  • Company changes.

  • Department changes.

  • Pay system changes.

  • Pay group changes.

  • Eligibility group changes.

  • Holiday changes.

  • Grade changes.

  • Employee PHF/SI data.

Retro Method and Override Sets

For Global Payroll for China, the default retroactive method is forwarding and two delivered override sets determine how elements are forwarded when a retroactive trigger is generated:

  • Retro Override Set 1: Referred to as the retro when earned override set. Using this override set, the system forwards retro earnings to the current month and calculates deductions such as tax and PHF/SI contributions based on the combined total of current earnings and retro earnings.

  • Retro Override Set 2: Referred to as the retro when paid override set. Using this override set, the system creates deltas for each earning, deduction, and segment accumulator recalculated in a prior period, and forwards the deltas to the current period.

The formula CN FM RETRO determines which override set to use for a payee. It first checks for a supporting element override (SOVR) for the CN VR RETRO variable. If no SOVR exists for CN VR RETRO, CN FM RETRO uses the default override set for the payee's contribution area according to the value listed in the CN BR RETRO DFLT bracket. If a SOVR exists for CN VR RETRO, CN FM RETRO uses the overridden value to determine which override set to use.

You can segment components of pay based on events such as changes to compensation, employee status, or a job during a pay period. For example, you can set up the system to trigger segmentation of earnings results on the payslip when a change occurs to an employee's job data in PeopleSoft HR.

PeopleSoft Global Payroll provides two types of segmentation:

  • Period segmentation (full segmentation).

  • Element segmentation (slice segmentation).

Period segmentation occurs when more than one gross-to-net calculation is required. Element segmentation occurs when employee data changes in midperiod, requiring the affected elements to be calculated on either side of the date of change.

In Global Payroll for China, period segmentation occurs as a result of:

  • Company changes.

  • Pay group changes.

  • Pay system changes.

  • Employee actions, such as hires, terminations, transfers, and additional jobs.

Element segmentation occurs as a result of:

  • Pay rate changes.

  • Standard hours changes.

  • Department changes.

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 the system applies proration rules.

Global Payroll for China delivers these rounding rules:

Data to Be Rounded

Rule

Compensation

For internal calculations, use six decimal places, but always resolve to two decimal places.

Hourly Rates

Hourly rates should always be stored with six decimal places.

Taxes

For internal calculations, use six decimal places, but always resolve to two decimal places.

Public Housing Fund Deductions

Calculate and resolve to an integer.

All Other Deductions

Calculate and resolve to two decimal places.

Net Pay

Calculate and resolve to two decimal places.

Triggers are used to detect online changes to data that should result in some type of system action.

Global Payroll provides three types of triggers:

  • Iterative

    Tells the system to process (or reprocess) an employee in the current period. In Global Payroll for China, an iterative trigger must be defined for each table containing retroactive or segmentation triggers.

  • Segmentation

    Tells the system to segment a period or element. PeopleSoft Global Payroll delivers a full segmentation and an element segmentation event with Global Payroll for China.

  • Retro

    Tells the system to perform retroactive processing. PeopleSoft delivers the forwarding processing retroactive event with Global Payroll for China.