Profit Sharing Payments

You need to create the Profit Sharing payment elements with the appropriate parameters, as part of the setup.

There are no predefined elements for payment in the Profit Sharing feature.

You can use these classifications to create the Profit Sharing payment elements:

• Primary Classifications: Supplemental Earnings

• Secondary Classifications: Profit Sharing

Based on above classifications:

• The Calculate Mexico Profit Sharing task flow includes the element in the list of values of the Element Name parameter.

• The balance feed to Mexico Profit Sharing statutory balance is created.

Eligibility Profiles

Profit Sharing elements need to have at least the Payroll Statutory Unit eligibility profile.

Balance

The predefined Mexico Profit Sharing statutory balance stores the profit sharing payment and is used to compute the cap of the average of the previous three years payments.

ISR Tax Implications

Based on the ISR Tax Regulation Article 174, Profit Sharing ISR Tax can use the nonperiodic calculation procedure.

For more information, see the document 2541656.1 (Oracle Fusion HCM (Mexico): Federal Income Tax (ISR)) on My Oracle Support (MOS)