Understanding Earnings

This topic discusses:

Delivered earnings.
Delivered supporting elements.
Process lists and sections.
How to view delivered elements.

PeopleSoft Global Payroll for China delivers a number of earnings that demonstrate the flexibility of PeopleSoft Global Payroll rules to meet common processing requirements such as the calculation of wages and overtime.

In this table, the first column combines the name and description of the delivered earnings. The other columns indicate the calculation rule components, such as unit, rate, percent, and amount, and the generation control for each earning. NA represents calculation rule components that are not applicable.

Name/Descr	Unit	Rate	Percent	Amount	Generation Control	Pre-Process and Post-Process Formula
MONTH SALARY Monthly Salary	NA	NA	NA	CN RC BASE SALARY (Rate Code - Amount)	CN GC ACTIVE	Post - CN FM REDUCE SALRY
13THMNTH PAY 13^th Month Pay	NA	NA	NA	CN FM RSLV 13MTH (Formula - Monetary & Decimal)	CN GC 13TH MTH	NA
VAR BONUS Variable Bonus	NA	NA	NA	Payee Level	NA	NA
SPOUSE ALLOW Spouse Allowance	NA	NA	NA	CN BR SPOUSE ALW (Bracket - Numeric)	CN GC SPOUSE CHK	NA
HOUSE ALLOW House Allowance	NA	NA	NA	CN BR HOUSE ALW (Bracket - Numeric)	CN GC ACTIVE	NA
COMMISSION Commission Payments	NA	NA	NA	Payee Level	CN GC ACTIVE	NA
TERM PAY Termination Pay	NA	NA	NA	CN FM TERM PAY (Formula - Monetary & Decimal)	NA	NA
OVERTIME PAY Weekday Overtime Pay	Payee Level	HOURLY RT (System Element - Numeric)	150%	NA	NA	NA
OVERTIME 2.0 Weekend Overtime Pay	Payee Level	HOURLY RT (System Element - Numeric)	200%	NA	NA	NA
OVERTIME 3.0 Public Holiday Overtime Pay	Payee Level	HOURLY RT (System Element - Numeric)	300%	NA	NA	NA
SEVERANCE Severance Pay	NA	NA	NA	CN FM SEV AVG PAY (Formula - Monetary & Decimal)	NA	NA
RTO 13BASE Retro for 13mth base sal accum	NA	NA	NA	Payee Level	CN GC ACTIVE	NA
RTO TOT DAYS Retro 13mth pay - tot wrk days	NA	NA	NA	Payee Level	CN GC ACTIVE	NA
RTO WRK DAYS Retro prd - no of work days	NA	NA	NA	Payee Level	CN GC ACTIVE	NA
RTO EARNINGS Retro Earnings	NA	NA	NA	Payee Level	NA	NA
RTO VAC PD Retro Vacation Paid	Payee Level	Payee Level	NA	NA	NA	NA
RTO VAC UNP Retro Vacation Unpaid	Payee Level	Payee Level	NA	NA	NA	NA

Note: These elements are defined as PS Delivered/Not Maintained. This means that you can use them as delivered, modify them, or replace them with new elements.

Note: Global Payroll for China also delivers absence-related earnings. These are discussed in a separate topic in this documentation.

See Understanding Absence Elements

Monthly Salary

Global Payroll for China delivers the MONTH SALARY earning as an example of how to calculate monthly salary for your payees.

The CN GC ACTIVE generation control ensures that only payees with a Job status of Active receive the MONTH SALARY earning.
The system determines the amount of MONTH SALARY based on the CN RC BASE SALARY rate code.
The post processing formula CN FM REDUCE SALRY reduces MONTH SALARY by any leave taken during the period.
The proration rule GP PRORATE WRK DAY prorates MONTH SALARY based on the number of days worked in the calendar period.

Note: Proration and rounding rules are set at the pay group level.

This diagram illustrates the process flow for the MONTH SALARY earning:

Overtime Pay

Global Payroll for China delivers the OVERTIME PAY earning as an example of how to calculate overtime pay for your payees.

The system calculates OVERTIME PAY using positive input units * HOURLY RT * 150%.
No proration is required because the assumption is that OVERTIME PAY will be entered through positive input.

This diagram illustrates the process flow for the OVERTIME PAY earning:

Variable Bonus

Global Payroll for China delivers the VAR BONUS earning as an example of how to enter variable bonus pay for your payees.

VAR BONUS is a fixed amount earning entered through positive input.
No proration is associated with VAR BONUS.

This diagram illustrates the process flow for the VAR BONUS earning:

13th Month Pay

Global Payroll for China delivers the 13THMNTH PAY earning as an example of how to provide 13^th Month Pay for your payees.

The system pays 13THMNTH PAY annually based on the previous 12 months' earnings.
The system calculates 13THMNTH PAY using a payee's base monthly salary only (annual salary/12, prorated for days worked during the month), not the actual MONTH SALARY earning. It also does not include any allowances or deductions in the calculation of 13THMNTH PAY.
For payees hired between the 1^st and 15^th of a month in the calculation year, 100% of their base monthly salary for the hire month and subsequent months contributes to 13THMNTH PAY. For payees hired after the 15^th of a month, 50% of the base monthly salary for the hire month and 100% of the base monthly salary for subsequent months contribute to 13THMNTH PAY.
The system prorates 13THMNTH PAY for unpaid vacation leave taken during the year, that is, leave days exceeding the annual leave entitlement.

This diagram illustrates the process flow for the 13THMNTH PAY earning:

House Allowance

Global Payroll for China delivers the HOUSE ALLOW earning as an example of how to calculate a house allowance for your payees.

The system calculates the HOUSE ALLOW earning based on the CN BR HOUSE ALW bracket, which associates house allowances with annual rates of pay.
The system prorates HOUSE ALLOW for calendar periods using GP PRORATE WRK DAY.

Note: Proration and rounding rules are set at the pay group level.

This diagram illustrates the process flow for the HOUSE ALLOW earning:

Spouse Allowance

Global Payroll for China delivers the SPOUSE ALLOW earning as an example of how to calculate a spouse allowance for your payees.

The generation control CN GC SPOUSE CHK determines whether payees are eligible for the SPOUSE ALLOW earning based on their marital status and employee type. Only married expatriate payees receive the SPOUSE ALLOW earning.
The system calculates the SPOUSE ALLOW earning based on the CN BR SPOUSE ALW bracket, which associates spouse allowances with employee type and annual rate of pay.
The system prorates SPOUSE ALLOW for calendar periods using GP PRORATE WRK DAY.

Note: Proration and rounding rules are set at the pay group level.

This diagram illustrates the process flow for the SPOUSE ALLOW earning:

Commission

Global Payroll for China delivers the COMMISSION earning as an example of how to enter commission pay for your payees.

COMMISSION is a fixed amount earning entered through positive input.
No proration is associated with COMMISSION.

This diagram illustrates the process flow for the COMMISSION earning:

Retro Earnings

Global Payroll for China delivers six retro earnings:

RTO 13BASE
RTO TOT DAYS
RTO WRK DAYS
RTO EARNINGS
RTO VAC PD
RTO VAC UNP

The system uses these earnings to forward actual earnings information from a retro period to the current period when it encounters retro during a payroll run.

This table lists the key supporting elements used to define the delivered earnings:

Element Type	Element Name	Used By	Function
Variable	CN VR EE TYPE	SPOUSE ALLOW	Indicates the employee type: LOC (local), DIS (disabled), or EXP (expatriate). LOC is the default value, but can be modified based on Citizenship status or Disability status, or through the use of a supporting element override.
	CN VR 13MTH FCTR	13THMNTH PAY	The number of months' pay to be paid as a 13th Month Pay bonus. The default is 1, but you can override it at the pay entity, pay group, or payee level.
	CN VR GOVT WRK DAYS	13THMNTH PAY	The government-regulated number of work days per month. The system uses this in 13th Month Pay calculations when determining the applicable proration factor for unpaid leave days in the previous year. The default value is 20.92, but you can override it at the pay group or payee level.
Formula	CN FM REDUCE SALRY	MONTH SALARY	Reduces monthly salary earnings by any paid or unpaid earnings for a calendar period.
	CN FM RSLV 13MTH	13THMNTH PAY	Calculates 13th Month Pay for the previous YTD.
	CN FM ACUM PCT	13THMNTH PAY	Determines the percentage (50 or 100) of the base monthly salary that should contribute to the 13th Month Base segment accumulator, including any proration of the amount due to segmentation.
Bracket	CN BR HOUSE ALW	HOUSE ALLOW	Stores the earnings amount lower limit and the house allowance amount for that limit. If a payee's annual earnings amount is between two amounts in the bracket, the system selects the lower amount.
	CN BR SPOUSE ALW	SPOUSE ALLOW	Stores the employee type, earnings amount lower limit, and spouse allowance amount or that limit. If a payee's annual earnings amount is between two amounts in the bracket, the system selects the lower amount.
Generation Control	CN GC ACTIVE	MONTH SALARY HOUSE ALLOW COMMISSION RTO 13BASE RTO TOT DAYS RTO WRK DAYS	Determines whether the payee has a Job status of active at the time of processing.
	CN GC SPOUSE CHK	SPOUSE ALLOW	Determines payee eligibility for the SPOUSE ALLOW earning based on marital status and employee type (CN VR EE TYPE). For a payee to be eligible for the SPOUSE ALLOW earning, marital status must equal Married and employee type must equal EXP (expatriate). Also determines whether the payee has a Job status of active at the time of processing.
	CN GC 13TH MTH	13THMNTH PAY	Initiates 13th Month pay processing by checking for a generation control frequency of ANNUAL on the pay calendar associated with the pay run. Also determines whether the payee has a Job status of active at the time of processing.

TERM PAY and SEVERANCE are members of the CN SE TERMINATION section. The rest of the delivered earnings are members of the CN SE EARNINGS section.

The CN SE EARNINGS and CN SE TERMINATION sections are included in the CN PR PAYROLL process list.

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for China.

See Understanding How to View Delivered Elements.

Understanding Earnings

Delivered Earnings