Using Core Functionality in Brazil
This topic describes how to use the following core PeopleSoft Global Payroll features in your Brazilian payroll system:
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 Brazil, all retro is handled with the forwarding method to comply with Brazilian legislation that requires all retroactive payments to be taxed in the current period. 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 data described in the following sections.
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 include absence take-related changes:
Positive input
Pay group
Earnings and deductions are recalculated and a difference results.
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.
In Brazil, the following types of accumulators are used:
Annual accumulators for annual reports and average salary (when average salary is based in the current year).
Monthly accumulators for tax calculation and social security fees.
Custom accumulators to store absences that affect the weekly days-off and holidays payments.
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 or full segmentation and element segmentation or slice. 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. In other words, 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.
Note: Global Payroll for Brazil does not utilize element segmentation.
In Global Payroll for Brazil, the following items produce a period segmentation:
Changes in eligibility group.
Changes in pay entity.
Changes in pay group.
Hirings and terminations held in the calendar.
Global Payroll for Brazil delivers some segmentation; however, you can alter the delivered segmentation events and add or delete segmentation events depending on your business needs.
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 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 Brazil delivers some triggers; however, you can alter the delivered triggers and add or delete trigger setups depending on your business needs.
Delivered Iterative Triggers
The following table lists the iterative trigger setups that are delivered with Global Payroll for Brazil:
Changes to: |
Trigger |
---|---|
Employee's employment record |
EMPLOYMENT |
Employees job records |
JOB and JOB_JR |
Employee's compensation record |
COMPENSATION |
Employee's personal data record |
PERSONAL_DATA |
Employee's contract data record |
CONTRACT_DATA |
Employee's positive input records |
GP_PI_MNL_DATA |
Employee's positive input supporting element override record |
GP_PI_MNL_SOVR |
Employee's payee override record (earnings and deductions assignments) |
GP_PYE_OVRD |
Employee's payee element assignment supporting element override record |
GP_PYE_OVR_SOVR |
Employee's payee section detail record |
GP_PYE_SECT_DTL |
Employee's personal data effective date record |
PERS_DATA_EFFDT |
Employee's schedule calendar assignment record |
SCH_ASSIGN |
Employee's workday overrides record |
SCH_MNG_SCH_TBL |
Employee's workforce contract type record |
WKF_CNT_TYPE |
Employee's absence records |
GP_ABS_EVENT, GP_ABS_OVRD, etc. |
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 proration rules have been applied.
Global Payroll for Brazil does not deliver country-specific rounding rules.
Global Payroll for Brazil supports the following types of salaries:
Monthly
Weekly
Daily
Hourly
Global Payroll for Brazil delivers the following HR rate codes to support the listed salaries:
Rate Code |
Description |
---|---|
KRH |
Hourly |
KRM |
Monthly |