Payroll Relationships

A payroll relationship represents the association between a person and a payroll statutory unit (PSU), which is the legal entity responsible for employee payment. Payroll relationships group a person's employment assignment records based on the payroll statutory calculation and reporting requirements.

Payroll relationships facilitate the capture and extraction of HR and payroll-related data sent to a third party, such as a payroll provider for payroll processing. Payroll processing always occurs at the payroll relationship level. When you display the payroll process results for a person, you first select the person's payroll relationship record and then drill down to view details.

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

Payroll Relationship Records Creation

For the rehire process to automatically create a payroll relationship record, you must have a mapping between the system person type and the payroll relationship type. The table below shows the payroll relationship type values that are supported.

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.

The relationship mapping rules that map system person types to payroll relationship types, can vary by country or territory. The table below shows the mapping between system person types, and payroll relationship types, that are applicable for the UK.

System Person Type	Payroll Relationship Type
Employee	Standard
Pensioner	Standard
Volunteer	Standard
Nonworker Paid	Standard
Nonworker Unpaid	Element Entry Only
Pending Worker	Element Entry Only
Pending Worker as Contingent Worker	Element Entry Only
Pending Worker as Employee	Element Entry Only
Contingent Worker	Element Entry Only

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 example:

• A payroll relationship is created for each person type.

• For a relationship that gets terminated, a new payroll relationship is created within the same payroll relationship and PSU, for the rehire.

• If a person is rehired the day after the previous termination date, the previous payroll relationship is used. For example, in case of fixed-term contracts, this enables back-to-back periods of continuous service.

• If a person is rehired the day after the previous termination date, if the previous employment was terminated, a P45 was produced, and it was reported in the FPS:

  • A new PAYE component should be created and associated to the new assignment.

  • It should be populated with the previous pay and previous tax values from the previous employment that has just ended.

  • Adding a final close to the payroll of the old assignment will ensure it is no longer processed.