2Personal Payroll Info

This chapter contains the following:

Payroll Relationships

A payroll relationship represents the association between a person and a payroll statutory unit (PSU), which is the legal entity responsible for employee payment. Payroll relationships group a person's employment assignment records based on the payroll statutory calculation and reporting requirements. Payroll relationships facilitate the capture and extraction of HR and payroll-related data sent to a third party, such as a payroll provider for payroll processing.

Payroll processing always occurs at the payroll relationship level. When you display the payroll process results for a person, you first select the person's payroll relationship record and then drill down to view details.

Payroll relationships aggregate balances at the payroll relationship level. Within a payroll relationship, payroll processes can aggregate balances for multiple assignment records. Balances don't span payroll relationships.

Create Payroll Relationship Records and Mapping Rules

The mapping between the system person type and the payroll relationship type must exist for certain processes. For example, to create a payroll relationship record automatically during the rehire process. You must use the payroll relationship types predefined in the application. You can't create your own.

This table shows the predefined payroll relationship type.

Payroll Relationship Type Description

Standard

Person types mapped to this payroll relationship type are included in payroll runs.

Element Entry Only

Person types mapped to this payroll relationship type have only element entries created for them and are excluded from payroll processing.

Relationship mapping rules, which map system person types to payroll relationship types, can vary by country or territory. The mapping rules are predefined for each legislation.

This table shows the mapping between system person types and payroll relationship types applicable for Canada where Contingent Worker type, Retiree, and Nonworker Unpaid type are excluded from payroll processing.

System Person Type Payroll Relationship Type

Contingent Worker

Element Entry Only

Employee

Standard

Nonworker Paid

Standard

Nonworker Unpaid

Element Entry Only

Retiree

Element Entry Only

A payroll relationship can't end while active employment assignments are present. When all employment assignments are ended, a payroll relationship could either remain active or become end dated. A payroll relationship depends on the legislation and the payroll relationship rules applicable for the legislation. For example:

  • For the US, relationships that remain active enables future rehire within the same payroll relationship and PSU.

  • For the UK, for a relationship that gets terminated, a new payroll relationship is created within the same payroll relationship and PSU, for the rehire.

The payroll relationship rule determines what happens when you terminate the last active employment assignment record for a payroll relationship. The rule also determines whether the application creates a payroll relationship when you add a new assignment record for an employee. This topic describes the following predefined rules that localizations can use.

Lifetime Rule

When a work assignment is terminated, the associated payroll relationship continues to remain active. When you create an assignment, the application searches for an active payroll relationship of the same type and for the same payroll statutory unit (PSU). If found, the new assignment is attached to the existing active payroll relationship. If not, a new payroll relationship is generated.

Continuous Period of Service Rule

When a work assignment is terminated, the associated payroll relationship becomes inactive and is terminated. Subsequently, when you create an assignment, the application searches for an active payroll relationship of the same type and for the same PSU. If a payroll relationship exists, date validation occurs to determine whether to use the existing payroll relationship or to create one. The application compares the start date of the new assignment to the last standard earnings date of the existing payroll relationship. If the start date is before the last standard earnings date, the application uses the existing payroll relationship, otherwise, it creates one.

Independent Rule

When a work assignment is terminated, the associated payroll relationship becomes inactive and is terminated. When you create an assignment, a new payroll relationship is created. Each payroll relationship is associated with one work assignment.

Add and Transfer Payrolls

How You Assign and Transfer Payroll

In this procedure, you will assign and transfer the employee - Elizabeth Brown to a different payroll.

Assigning and Transferring Payroll

To assign and transfer payroll, follow these steps:
  1. From the Navigator, select the Person Management work area.

  2. In the Name field, enter Brown.

  3. In the Effective As-of Date field, enter 01/01/2014.

  4. Click Search.

  5. In the Search Results section, click Brown, Elizabeth.

  6. Click Manage Payroll Relationships.

  7. In the Assignment: Analyst section, on the Payroll Details tool bar, click the Actions drop-down list box and select Transfer Payroll.

  8. Click the Payroll choice list and select Monthly.

  9. Click Save.

  10. Click Done.

Add a Payroll to a Person

You add a payroll to a person to control how and when the person is paid. For example, you add a weekly payroll to the assignment of Carrie Smith to ensure the application pays her each Friday.

You can add a payroll when you hire an employee or when you create other types of person records such as candidate and pending workers. You can also enter a payroll on the payroll relationship page.

If you use a third-party payroll product, you might also need to capture a payroll for a person with HCM Cloud. For example, if your company has defined a salary basis with a 'Payroll Period' frequency, you need to add a payroll to the person before you can enter a salary.

Transfer a Payroll

You can transfer a person to another payroll on the Manage Payroll Relationships page. Select the appropriate assignment record to view the person's current payroll details.

Select the 'Transfer Payroll' option to move the assignment to a new payroll. The assignment will begin processing on the new payroll from the payroll transfer date. The original payroll on the assignment will also remain active to enable you to pay any outstanding payments on this payroll. Once you complete all such payments, you can enter a Final Close Date to end date the original payroll.

Note: The application will process the employee in both the original and new payrolls until you enter a Final Close date

Payroll Transfer Dates

When you transfer a payroll, the application creates a new payroll record for the assignment and, also populates element duration dates on the new and original payroll records. These dates control how the application processes assignment level earnings and deductions on the new and original payrolls.

Carrie Smith is a temporary employee, assigned to a weekly payroll. She accepts an offer to become a full-time permanent employee in the same position starting on 20-Feb. Here's how you can update Carrie's assignment record:

  • On the Manage Relationship's page, you transfer her to a semi-monthly payroll, appropriate for a full-time permanent worker.

  • Set the effective date to 20-Feb, which is the date of payroll transfer.

The transfer sets element duration dates on the original weekly payroll and the new semi-monthly payroll as shown below.

Semi-Monthly Payroll

Name Date Description

Start Date

20-Feb

This is the date Carrie transferred to the semi-monthly payroll.

First Standard Earnings Date

20-Feb

This date is also set to Carrie's payroll transfer date. It controls the start date of entries such as salary on the semi-monthly payroll.

Weekly payroll

Name Date Description

Last Standard Earnings Date

19-Feb

This is the day before Carrie's payroll transfer date. This date controls the end date of entries such as salary, on the weekly payroll.

Last Standard Process Date

23-Feb

This is the last of the weekly payroll period in which Carrie's payroll transfer occurred. Use this to control the end date of entries such as, voluntary deductions on the weekly payroll.

Final Close Date

Example: 19-Aug

This date is entered by the Payroll or HR administrator which ends Carrie's association with the weekly payroll. All outstanding payments including commission and overtime must be paid before you enter a Final Close Date.

End Date

N/A

This is the end date of the semi-monthly payroll. This date is defaulted when you enter a final close date.

Note: Payroll customers should define eligibility rules based on a payroll criteria such as, 'All Payrolls' for assignment level elements. This ensures assignment level element entries are processed based on the dates populated by the payroll transfer.

Define Payroll level Information

You have the option to define information such as the Time Card Required status against either the person's payroll, or directly on the assignment record. Select the option that best meets the needs of your company. You can use Transaction Design Studio to hide fields at different levels:

  • Payroll Level: Select this option if the attribute such as Time Card Required changes when a worker transfers to a new payroll. Assume all weekly paid workers at your company submit a time card, but all monthly paid workers are salaried and therefore don't. In such scenarios you can enable the Time Card Required field at a payroll level to meet this requirement.

  • Assignment Level: Select this option if the attribute such as Time Card Required doesn't change when a worker transfers to a new payroll.

The payroll option enables you to capture information that's specific to the payroll of a person. This option is particularly helpful when an assignment has multiple active payrolls following a payroll transfer.

How can I prorate elements when a person transfers payrolls?

You can prorate assignment level elements when a person transfers to a new payroll using the following steps:

  1. Enable proration for the assignment level element.

  2. Ensure the proration event group tracks changes to a person's payroll.

  3. Define eligibility for the element using the payroll criteria. Select the 'All Payrolls' option if the element is applicable to workers on any of your company's payrolls

Let's assume you have enabled proration for the Salary element. You transfer Yan Klein from the weekly to monthly payroll effective 20-Feb.

  • The application will stop processing Yan's salary for the weekly payroll on 19-Feb and the salary entry is prorated.

  • The application starts processing Yan's salary for the monthly payroll on 20-Feb and the salary entry is prorated.

Note: In the example above, the salary element ends on the Last Standard Earnings date of the assignment.

What happens when I add a payroll to a person? Does the application create a new Payroll Relationship?

The application automatically creates a payroll relationship when you hire a worker or when you create other types of person records such as candidate or pending workers. Adding a payroll to a person doesn't create a new payroll relationship.

Personal Payment Methods

You can enter bank, branch, and bank account information centrally as part of implementation, or you can let employees add their own bank information. You can share this information across multiple applications for different purposes.

This table summarizes several approaches to create bank information for employees.

Approach Purpose

Manage Banks page and Manage Bank Branches page

View, create, or edit banks and branches centrally for outgoing payments or receiving payments

Manage Personal Payment Methods page

Create or edit employee bank account details to receive payments

Data Loader

Load personal payment methods and employee bank account details using an integrated Excel workbook

Control Who Can Manage Banks and Branches

This table shows the roles that are typically involved in managing bank information, what actions they can take by default, and which pages they use.

Role Can Create Banks and Branches? Can Create Employee Bank Account Details? Location

Cash Manager

Yes

No

Manage Banks page and Manage Bank Branches page.

Offerings: Workforce Deployment

Functional Area: Payroll

Payroll Administrator

Payroll Interface Coordinator

Payroll Manager

Depends on duty role or profile option

Yes

Manage Personal Payment Methods page, Payment Distribution work area

Employee

Depends on duty role or profile option

Yes

Manage Payment Methods page, Portrait

You can use a profile option to control access to create bank and branch data. On the Manage Cash Management Profile Options page, set the Use Existing Banks and Branches profile option to either Yes or No.

  • If you set the option to Yes, you can load bank and branch data. Administrators and employees select bank details from a list of values on the Create Personal Payment Method page.

  • If you set the option to No (default setting), you can't load any bank details. Administrators and employees enter their bank and branch details as free text.

FAQs for Personal Payment Methods

The payroll determines the payment methods available to the person. Check whether the person has an assigned payroll on the Manage Payroll Relationships page.

You can't make date-effective changes that cause effective records for the default payment method to overlap. Make sure you change results in a valid default payment method with dates that don't overlap with other records.

Payment methods defined for a person contain date-effective records that allow changes to occur at different points in time. For example, you can define a payment method in advance to start on the date that you specify.

A person's payroll relationship must have only one default payment method in effect at any point in time. If a person has multiple payroll relationships, you must specify a default payment method for each payroll relationship.

You can't edit bank and branch information on the Manage Personal Payment Methods page. Contact your help desk for assistance. You may be able to create banks and branches, depending on your security privileges.

Why can't I find my organization payment method when creating other payroll objects?

When you update an object's organization payment method, you must make the effective start date of the organization payment method on or before the effective date of the change. For example, to create a payroll definition effective on 4/1/2012 with a default organization payment method, the organization payment method must have an effective start date on or before 4/1/2012. You can only select an organization payment method that has an effective start date on or before the date you're creating or updating the object.

How can I change my bank details for direct deposit payments?

On your home page, select Pay and Payment Methods. View, print or download your payslips, change your bank account details or manage your payment methods.

Personal Payroll Entries

Update payroll information for your employees in the Payroll Administration or Payroll Calculation work areas. You can use the Payment Distribution work area for payment methods. Employees can update their own payment method and bank account details through the Personal Information icon on their home page.

You can find examples of the tasks to maintain personal payroll information in this table. The Payroll Only column indicates whether the task is applicable only for Global Payroll.

Offering/Functional Area/Task Instructions Payroll Only

Offering: Workforce Deployment

Functional Area: Payroll

Task: Manage Elements

  • Review the earnings and deduction entries to be processed in the payroll run.

  • You can update some entries, such as voluntary deductions.

  • You can manage other entries, such as salary, through other pages or in a source application. The entries are view-only on this page.

No

Offering: Workforce Deployment

Functional Area: Legal Structures

Task: Manage Legal Reporting Unit Calculation Cards

  • Review rates and values for statutory deductions, involuntary deductions, and other entries held on calculation cards.

  • Depending on the type of entry, you can update values on the card, or in a source application, such as a time card.

No

Functional Area: Payment Distribution

Task: Manage Personal Payment Methods

  • Create personal payment methods, and specify the percentage or fixed amount that each method has to pay.

  • Enter bank account details for electronic funds transfers.

No

Offering: Workforce Deployment

Functional Area: Payroll

Task: Manage Third Parties

  • Create third-party payees to process payments to organizations and people who aren't on the payroll.

Yes

Functional Area: Payment Distribution

Task: Manage Payroll Relationships

  • Transfer a person to another payroll.

  • Enter final processing dates for terminations.

No

Functional Area: Payroll Administration

Task: Manage Batch Uploads

Use a spreadsheet to batch load these person-level information:

  • Element entries

  • Bank details for personal payment methods

  • Assigned payrolls

No

Terminations

These scenarios illustrate how to set the last standard process date and final close date for element entries at the assignment level. You can't change the last standard earnings date. Set element duration dates in the Payroll Details section of the Manage Payroll Relationships page of the Payroll Calculation work area.

Exclude Terminated Employees from Process Consideration

You terminated Heidi's assignment on 3 June 2014. The termination process automatically sets the last standard earnings date to the termination date (3 June 2014). The process also sets the last standard process date to the end date of her weekly payroll (6 June 2014). The termination process doesn't set a final close date.

To ensure that payroll processes don't consider Heidi for processing for one full year after termination, you set the final close date to 3 June 2015.

Note: The latest entry date defined for any severance payment elements determines the last date you can enter element entry details for the terminated employee's severance payment. You can view the latest entry date setting on the Element Summary section of the Manage Elements page.

Modify the Last Standard Process Date for Compensation

Anthony has two assignment records, one on a weekly payroll and one on a monthly payroll. On 10 June 2014, an HR manager terminated Anthony's assignment record on the weekly payroll. The termination process automatically set the last standard process date to the end date of the payroll period. Anthony's termination package specifies that he should receive compensation payments through the month of June. To ensure he's paid on both the weekly and monthly payroll through June, you must change the last standard process date on the weekly payroll to 30 June 2014.

Initiating a termination automatically sets dates that control when the person's element entries end. The effect date of a termination on payroll relationships and assignments depends on the type of termination and country or territory payroll relationship rules.

Entry Dates That Affect Processing

Element setup determines which element duration date is significant for a specific element. The termination process sets the end dates automatically.

Note: If a person has multiple assigned payrolls, the termination process sets the last standard process date for all active payroll records for each assignment to the latest date.

How Terminations Are Processed

When you terminate an assignment or entire work relationship, the application terminates the appropriate payroll records. The type of termination and the payroll relationship rule for the country or territory determines which payroll objects the process terminates.

Update Personal Payroll Information for a Termination

When you receive notification of a termination, perform these tasks in the Payroll Calculation work area, either manually or as part of a payroll termination flow:

  • Update element entries, for example, enter severance payment details on the Manage Element Entries page.

  • Verify termination dates and element duration dates on the Manage Payroll Relationships page.

  • Update personal calculation cards to provide information required for tax reporting on the Manage Calculation Cards page.

If you use Oracle Fusion Global Payroll for payroll processing, your termination flow might include one or more automatic or manual tasks such as the ones listed above. You can use this work area to manage these flows:

  • Payroll Dashboard to view the details of payroll termination flow tasks and navigate to any items requiring attention

  • Payroll Checklist to view the status and results of tasks in an active flow

FAQ for Personal Payroll Entries

How can I correct a hire date for an employee?

You correct the hire date for an employee in the Person Management page. Even if you changed the hire date, you have access to all the employee's payroll processes after the hire date has been updated. For example, you hire and pay a worker then you're informed the worker joined the company on a later date, you can now correct the hire date and still view the worker's payroll results.