1. Implementing Payroll for Kuwait
  2. Options for Enterprise Structure Setup for HCM for Kuwait

Options for Enterprise Structure Setup for HCM for Kuwait

Kuwait supports all the global employment models. Use the global setup tasks to define legal entities, legal authorities, and legal addresses.

To ensure that the Kuwaiti reports are processed accurately, consider the following key points as you design and create enterprise structures for Oracle Fusion Human Capital Management (HCM).

Contract Data

To use the complete contract functionality, select any three-tier employment model or the Two-Tier Single Contract Single Assignment model. Use the Manage Legal Entity HCM Information task and select the employment model in the Legal Employer Details section.

Legislative Categories and Legal Authorities

Social Insurance is the main legislative category. Use this legislative category when you create the legal authority for the Social Insurance Office. While creating the legal jurisdiction, select Social Insurance as the legislative category and indicate it as the identifying jurisdiction.

For additional jurisdictions, use the registration code Civil Identifier for the Public Authority for Civil Information. Use the registration code Registration Number for the Ministry of Social Affairs and Labor.

Legal Entities, Legal Employers, and Payroll Statutory Units

For a Kuwaiti organization model, there must be a one-to-one relationship between the legal employer and the payroll statutory unit (PSU). Specify the legal entity as a legal employer and also as a PSU.

When you create a legal jurisdiction, you must select a legal entity registration code, which indicates which type of registration number to use for legal entities associated with that jurisdiction. It is recommended that you select Legal Reporting Unit Registration Number for the legal reporting unit registration code. When you create a legal entity, you must provide a valid legal entity registration code of the type required by the legal jurisdiction for the legal entity.

Tax Reporting Units

The Kuwaiti payroll reports are based on the PSU as there is a one-to-one mapping between the PSU and the TRU. The application automatically creates a default tax reporting unit (TRU) when you create a legal entity and identify it as a PSU. Though you can create additional TRUs, it's recommended that you link only one TRU to the legal employer and the PSU.

Payroll Statutory Unit Calculation Cards

You can create these calculation cards at the PSU level:

  • Employer Social Insurance Details: This card captures the employer sector and the formula for calculating the salary base for Social Insurance contributions. You can also set override details for the delivered calculation value definitions.

  • Employer Gratuity Details: This card captures information used for calculating the salary base for gratuity calculations and the formula for calculating the gratuity amount. You can also define your own reference formula to calculate the paid gratuity amount. This overrides the amount calculated by the default reference formula in the End of Service Details card in the gratuity details calculation component.
    Note: The flexfield structure used to store information entered in the calculation cards is described in Oracle_Fusion_HRMS_Kuwait_Payroll_Data.xls on My Oracle Support (MOS).