Overview of 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 PSU is the legal entity responsible for employee payment.

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. The assignments grouped within a payroll relationship always belongs to the same PSU and person type such as employee. 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.

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

Create Payroll Relationship Records

You establish a mapping between system person types and the payroll relationship types. Certain processes, such as the rehire process, use this mapping to automatically create a payroll relationship record. You must use the payroll relationship types predefined in the application. You can't create your own payroll relationship types.

This table shows the predefined payroll relationship types.

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. This table shows the mapping between system person types and payroll relationship types, that are applicable for Canada.

System Person Type	Payroll Relationship Type
Contingent Worker	Element Entry Only
Employee	Standard
Nonworker Paid	Standard
Nonworker Unpaid	Element Entry Only
Retiree	Standard

For Canada, Contingent Worker type and Nonworker Unpaid type are excluded from payroll processing.

The mapping rules are predefined for legislations provided by Oracle. You can't create your own payroll relationship types and you must use the values that are predefined in the application.

A payroll relationship can't end while there are active employment assignments. When all employment assignments are ended for a payroll relationship, it could either remain active or become end dated. It depends on the legislation and the payroll relationship rules applicable for the legislation. For Canada, relationships that remain active, enable future rehire within the same payroll relationship and PSU.

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 because Canada has the Lifetime payroll relationship rule.