1. HCM Data Loading Business Objects
  2. Overview

Overview

For a given worker, you can use HCM Data Loader to adjust payroll balances as of a certain date. The balance adjustment process creates a run result that adjusts one or more balances depending upon the balance fed by the element input value.

You can decide whether to cost the balance adjustment results or not. Additionally, you can also decide whether you want the adjustment results to be paid or not. You can pay the employee when you run the next pre-payment process that includes these adjustment run results. Further, the process assigns the results to the appropriate payment method as per the worker's payment method setup.

Corrections to Balance Initialization

Recollect the scenario where a group of employees were hired through an acquisition in the middle of a year. The original company already paid them their earnings and withheld their taxes. In your company's ongoing payroll, you initialize these employees' payroll balances for that year. As you can't initialize balances after the payroll is run for the employee, you adjust the balances for them.

These scenarios describe how you can adjust balances after the first payroll run.

  • The FIT Withheld balance for Andrew was initialized 100 less than what it should have been. The Payroll Manager makes a balance adjustment of 100 for Andrew using the payroll element that feeds the FIT Withheld balance.

  • Jane Reifer was omitted during the balance initialization process and none of her balances were loaded. The Payroll Manager can adjust Jane's omitted balances.

Third-Party Gross to Net calculations

There are several kinds of earnings that are managed by a third-party. For example, a company could use a third-party to handle disability payments, stock option payouts, moving and relocation expenses. In these cases, the employer still does the reporting of wages or taxes. Also, they adjust the balances by importing the incremental values, which the third-party calculates and withholds, to the application. The company can cost these balance adjustments as the third-party has already made payments to the employee.

Let's consider this example. Prasad is on a long term disability leave and his employer uses a third-party to manage his disability leave payments.

The third-party does these tasks.

  • Calculates Prasad's gross disability earnings as 5000 for the pay period.

  • Withholds FIT, SS and Medicare taxes as 1000, 500 and 250, respectively.

  • Pays him a net amount of 3250.

The Payroll Manager imports these values as balance adjustments for the balances.

Retrospective Changes Not Covered by RetroPay

Typically, you use the retroactive pay process to handle retroactive changes to data that impacts payroll calculation results. However, not all elements support Retro Pay. For example, tax deductions aren't enabled for retroactive pay. In such cases, for a retroactive change that impacts tax calculations, you can reflect the changes through balance adjustments.

Let's consider this example. John lives in California and pays his taxes there. He is on a biweekly payroll and is withheld 500 of the State Income Tax for the two weeks of earnings. In the 16 2018 Biweekly period, he worked in Texas, but didn't report the time on his time card. He should have been withheld SIT for 200 to Texas instead of the 500 to California.

In John's process results for the 16th payroll run, the payroll manager adjusts the existing SIT Withheld of 500 to California by doing these actions:

  • Make a 200 adjustment to Work State Income Tax for the state of Texas.

  • Negate the original run result for the amount 500.

Zeroing out Balances for Terminations

Here's an example where you zero out the balances for a terminated employee.

James Nance is terminated as of 9/15/2018 with a final close date of 9/30/2018. The payroll manager would like to zero out all arrears balances for James as of 9/30. Upon termination, the manager runs the deductions report and finds that James has these arrears balances as of 9/30.

  • Car Loan Deduction 2000.00

  • Student Loan Deduction 500.00

For the Arrears Adjustment element, the payroll manager loads -2000.00 and -500 as input values. These values zero out the Inception to Date arrears balances.

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