2Assemble and Maintain Payrolls

This chapter contains the following:

Personal Payroll Entries

You can update payroll information for your employees and employees can update their own payment method and bank account details on their home page.

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

Task Instructions Payroll Only

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

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

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

Third Parties

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

Yes

Payroll Relationships

  • Transfer a person to another payroll.

  • Enter final processing dates for terminations.

No

Manage Batch Uploads

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

  • Element entries

  • Bank details for personal payment methods

  • Assigned payrolls

No

Payroll Relationships

Overview of Administering Payroll Relationships

Oracle HCM Cloud automatically creates a payroll relationship when you hire an employee or create other types of person records, such as candidates and pending workers. A payroll relationship is an association between a person and a payroll statutory unit (PSU).

A payroll relationship is the highest level of the payroll employment model. If a person has multiple employments that belong to the same PSU, the application groups the assignments within a payroll relationship for statutory reporting purposes. Payroll relationships enable you to enter payroll related information for a person in Oracle HCM Cloud, such as compensation, time cards, payment methods, and salary offers to candidates.

Use the Payroll Relationships task to view details, such as the payroll relationship number and the associated PSU. You can also perform actions for the assignments associated to the payroll relationship, such as adding a payroll or setting the time card required status.

Process a Payroll Relationship in Payroll

For employees with multiple assignments, payroll relationships support tax and social insurance calculations that you perform on earnings from all assignments grouped within the relationship. The results of payroll processes are accordingly held against the payroll relationship of a person.

Use the Process Result Summary task to view a payroll process. Select a process such as calculate payroll, and drill-down to view a list of the payroll relationships included in the process.

Add Assignment to Employee

Use the Add Assignment task to create an assignment which belongs to the same PSU. The application adds new assignment to existing payroll relationship of the employee in countries with Lifetime or Last Record payroll relationship rules, such as the US and UK.

Payroll Relationship and Termination Dates

When you terminate an employee or end an assignment record, the Payroll Relationship page displays the corresponding dates. These dates control how earnings and deductions are processed for the terminated employment record.

For example, David Ellis resigned from his teaching post at Royal High School, and his line manager enters a termination date of 22-July-2020. The application will process David's last payroll payment for 31-July-2020. You can view these termination dates on the payroll relationship page for David. These dates show up at all the employment levels of David, such as assignment, associated payroll, and payroll relationship.

This image shows David's Ellis payroll processing dates and the behavior of the application for handling the payroll records:

This image helps you understand the application
behavior while processing the terminated employee's payroll.
Name Date Application Behavior

Last Standard Earnings Date

22-JUL-2020

Sets the Last Standard Earnings Date as David's termination date.

Last Standard Process Date

31-JULY-2020

Sets the Last Standard Process Date as the process date of the payroll period in which David's termination occurred.

Final Close Date

31-AUG-2021

Enter a Final Close Date on David's assignment. This date will carry over to David's payroll and payroll relationship records.

The Final Close Date ends the payroll records. You can't perform any payroll actions for David after this date, such as calculate payroll, make retro payments, or balance adjustments.

The date you provide would depend on your business requirements, such as when your company makes commission payments to terminated employees. However, the best approach is to enter a Final Close date that falls after tax year-end. You can perform any balance adjustments as part of your year-end processing.

Note: If you enter a Final Close date for a person who has other active assignments, the payroll relationship still remains active.

End Date

31-AUG-2021

This date is defaulted when you enter the Final Close Date.

Payroll Relationship and Rehires

When you rehire a person, the application adds the new assignment to the original payroll relationship or creates a new payroll relationship.

The behavior of the application depends on the legislative rules of your country. For example,

  • Lifetime Record payroll relationship rule in the US: If you rehire an employee, the application adds the rehire assignment to the original payroll relationship. If you have entered a Final Close Date on the payroll relationship, the application removes this date during the rehire process.

  • Last Record payroll relationship rule in the UK: If you rehire an employee, the application creates a new payroll relationship for the rehire assignment.

Note: These rules only apply to rehires that exist for the same person type such as employee and PSU as the original employment. The application creates a new payroll relationship for any rehires that exist for a different person type or PSU.

Payroll Relationship and Time Card Required

Select the Time Card Required option to indicate if an employee must submit a time card for salary payments.

This option controls how the salary basis entry for the employee is processed in the payroll run:

  • If a time card is required for the employee, the application doesn't process the salary basis entry in the payroll run. The employee must submit time cards for salary hours.

  • If a time card isn't required for the employee, the application processes the salary basis entry in the payroll run.

You can enter a Time Card Required status on the payroll record or assignment for a person. Use the Time Card Required status on the payroll record to control the status when the person transfers to a new payroll. Alternatively, you can define the status for a person on the assignment. Use the HCM Experience Design Studio task to select the option that best suits your company and hide the other fields.

Payroll Relationship and Overtime Period

Select an overtime period to allocate the employee's earnings to the selected period, such as weekly.

For the US, the overtime period defines the starting date and length of the default workweek for nonexempt employees. Overtime is allocated to the appropriate workweek and this information is used to determine overtime calculations.

You can enter an Overtime Period on the employee's payroll relationship, payroll record, or assignment level. The Overtime Period at payroll relationship level applies to all the assignments. Use the payroll record option to control the overtime period when the person transfers to a new payroll. Alternatively, you can define the period details for a person on the assignment. Use the HCM Experience Design Studio task to select the option that best suits your company and hide the other fields.

FAQs for Payroll Relationships

How can I create a payroll relationship?

Oracle HCM Cloud automatically creates a payroll relationship when you hire an employee or create other types of person records such as candidate and pending workers.

How can I end a payroll relationship?

Enter a Final Close Date for a terminated employee after you have completed all payroll processing including any remaining payments and year-end balance adjustments. The Final Close Date ends the payroll relationship record and discontinues the employee to be included in payroll processes.

Enter the Final Close Date on the assignment of the terminated employee. If the employee has no other active assignments, the Final Close Date that you have entered on the assignment shows up on the payroll relationship record.

What happens if I don't use Cloud Payroll, do I need a payroll relationship?

If you want to capture payroll related information in Oracle HCM Cloud such as salary, compensation, and time cards, you would require a payroll relationship. If you aren't using Cloud Payroll, you can extract this information from Oracle HCM Cloud and send to a third-party payroll provider.

Personal Payment Methods

You can enter bank, branch, and bank account info as part of implementation, or you can let employees add their own bank info. Once entered, you can share across multiple applications.

How to Enter Bank Info

This table summarizes approaches to create bank info for employees.

Approach Purpose

Manage Banks and Manage Bank Branches pages

Create, edit and view bank account info.

Payment Methods page

Create or edit employee bank account details to receive payments

HCM Data Loader

Use an integrated Excel workbook to load personal payment methods and employee bank account details

You can use CE_USE_EXISTING_BANK_BRANCH profile option to control to whether or not your employee can create their own 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 need to load bank and branch data. Administrators and employees select bank and branch details from a list of values in the bank region on the Payment Method page.

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

FAQs for Personal Payment Methods

The payroll definition determines the payment methods available to the person. Check whether the person has an assigned payroll on the 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.

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.

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.

Payroll that's assigned to a person controls how the application generates the entry dates for nonrecurring element entries. The application derives the end date of a nonrecurring element entry from the end date of the payroll period.

Let's consider this example. Effective on 3-Dec-2020, you assign a nonrecurring element entry to a monthly paid employee. In this case, the application automatically derives the end date as 31-Dec-2020. Alternatively, let's assume that you assign a nonrecurring element entry to a candidate before assigning them a payroll, which has an effective date of 3-Dec-2020. In this scenario, the application derives the start and the end date as 3-Dec-2020.

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.

FAQs for Add and Transfer Payroll

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.

Transfer Tax Reporting Units

Tax Reporting Units

Tax reporting units (TRU's) represent a legal entity for tax and social insurance reporting in legislations such as the US and UK.

You can assign a TRU to a worker using the payroll region on the new hire flow. Alternatively, you can associate a TRU on the statutory deduction calculation card of the worker.

Tax Reporting Across Multiple Assignments

The application uses TRU's to group the assignments of a worker for tax and social insurance reporting.

For example, Softgear Cars operates several car dealerships in the UK. They have a single legal entity responsible for employing and paying workers across all their dealerships. Sophie works part-time at two Softgear Cars showrooms. She has two assignments to capture information for each role such as showroom location and line manager details.

Both of Sophie's assignments are associated to the same TRU. Therefore, when the weekly payroll is processed, the application consolidates her earnings from both the assignments for tax and social insurance purposes.

Update TRU for a Worker

When a worker moves to a new legal employer, they may also require a new TRU. In this scenario, the global transfer process creates a new assignment, which can be associated to the new TRU.

In other circumstances, you need to update the TRU of a worker although they still retain their legal employer (and payroll statutory unit). For example, when the worker moves to another department within your organization. In this type of scenario, you can either update the TRU on the worker's original assignment or create a new assignment.

Scenario:

Vision Corporation operates supermarket and hardware stores in a US city.

  • Vision Corporation is a single legal entity responsible for employing and paying workers across all their stores.

  • The supermarket and hardware stores are classified differently for tax and social insurance reporting purposes. Vision Corporation therefore has two TRU's: Vision Supermarket and Vision Hardware.

Yan has worked at the supermarket store for several years, and has now secured a manager role at her local hardware store. With this promotion, update Yan's TRU from Vision Supermarket to Vision Hardware.

You must note that Yan transfers to the hardware store payroll on 10-May-2020. She will continue to be paid on a semi-monthly payroll.

Transfer TRU - New Assignment

  • You start by terminating Yan's original assignment on 09-May-2020. This will evoke standard payroll termination processing including the ending of element entries.

  • Then create a new assignment effective 10-May-2020 and associate it with Vision Hardware.

  • Enter her earnings and deductions as required.

  • Run the semi-monthly payroll for the period ending 15-May-2020.

  • The application performs two payroll calculations:

    1. Original Assignment: Earnings for the period 01-May-2020 to 09-May-2020 are taxed and reported against Vision Supermarkets.

    2. New Assignment: Earnings for the period 10-May-2020 to 15-May-2020 are taxed and reported against Vision Hardware.

Transfer TRU - Retain Assignment

  • Navigate to Yan's statutory deduction card. Set the effective date to 10-May-2020 and create a new tax card record for Vision Hardware.

  • Update her earnings and deductions as required.

  • Run the semi-monthly payroll for the period ending 15-May-2020.

  • All of Yan's earnings for the payroll period 01-May-2020 to 15-May-2020 are taxed and reported against Vision Hardware. This is the active TRU on the process date of the payroll run.

Retrospective Earnings: Let's assume Yan also has a backdated salary increase from 01-April-2020 which is paid on 15-May-2020. The retrospective salary payment is taxed against Vision Supermarket. As described above, the other payments in May are taxed against Vision hardware.

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 Payroll Relationships page.

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 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 either manually or as part of a payroll termination flow:

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

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

  • Update personal calculation cards to provide information required for tax reporting on the 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 these sections 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.