Terminations and Extra Period Processing

The system processes extra period pay in two ways when a termination occurs in a month that corresponds to an extra period payment:

• The system calculates the extra period for the terminated employee during the calculation of the extra period itself.

  Later, the regular payroll process calculates termination pay (including loans, advances, vacations, and so on).

• The system calculates the amount corresponding to the extra period during regular payroll processing as part of termination processing.

  The corresponding amount for extra periods is paid through the LIQ PXTR XXX earnings as part of the regular payroll calculation. You exclude the terminated employee from extra period calculation.

Note:

Neither of these ways substitute for the termination payroll. These choices to process termination pertain only to processing extra periods.

To allow for a flexible setup, PeopleSoft Global Payroll for Spain provides the CLI VR FNQ P PXTRA variable (pay extra period in termination), with the default value of N (don't execute the extra period). This means that, by default, terminated employees will not be included in the extra period calculation during a payment month that is an extra period. The system also provides an informational message stating that the employee was not included in the extra period calculation because he or she is terminated in such a period. Values for the CLI VR FNQ P PXTRA are Y (pay the extra period payment) and N (don't pay the extra period payment).

In the case that an extra period is paid in advance (extra periods with a payment date earlier than the extra period time frame end date) and in the case of the termination pay calculation, different situations may arise:

• The extra period was not paid, so pending extra periods are paid as part of the current period compensation, deducting the absence days affecting the extra period payment during the termination calculation.

• The extra period was already paid and the termination date is later than the extra period payment date but earlier than the extra period time frame end date.

  The extra period is paid but now those days paid in advance but not worked need to be discounted. The amount to be discounted can be calculated within the current compensation at termination time, or within the compensation paid at such an extra period.

  This is designed to be open, setting the value of the variable CLI VR PD VLR PXTR (compensation paid to pay extra period). Values for this variable are PAGADO (paid extra period compensation) and ACTUAL (current period compensation). The default value is PAGADO. Thus, the system calculates this deduction value using the previously paid daily price.

• The extra period was already paid, but absence days pending are to be discounted (absence days that occurred after the payment date but before the extra period end date).

  Those days will be discounted in the following extra period calculation (if you have it set up like this). Due to the termination, the absence days will be discounted in the termination pay.