1. Implementing Payroll for Kuwait
  2. Payroll Legislative Data for Kuwait

Payroll Legislative Data for Kuwait

Use the Configure Legislations for Human Resources task in the Setup and Maintenance area to create and edit payroll rules for countries or territories not initially provided by Oracle.

Objects you can configure include:

  • Legislative rules

  • Element classifications

  • Valid payment types

  • Component groups

  • Balance dimensions

  • Legislative data groups

Legislative Rules

Legislative rules govern how to manage employee records when you rehire employees into your organization. For example, for some countries, a rehire continues to be associated with the earlier payroll relationship, thereby having access to prior data, such as year-to-date balances. For some other countries, a rehire creates a new payroll relationship record with no access to prior data. The statutory rules for your country or territory determines the selections you make, such as the starting month of the tax year.

The legislative rules you can configure include mappings between system person types and payroll relationship types. This mapping controls which person types you can include in payroll calculation processing, such as the Calculate Gross Earnings process.
Note: You can't undo payroll relationship type mapping. If you select an element entries only option for a person type and then at a later date decide to use the Calculate Gross Earnings process, the process won't generate results for that person type. Consider using a standard option to provide more flexibility.

Element Classifications

Element classifications are collections of related elements. You select the primary classifications you want to include for your elements. You can provide new display names for element classifications to match the terminology that's most appropriate for your country or territory.

Valid Payment Types

Payment types are the means by which you issue payments to workers. The predefined payment types are Cheque, Cash, EFT (electronic funds transfer), and International Transfer. You can provide new display names for payment types to match terminology that's most appropriate for your country or territory.

Component Groups

Component groups are logical sets of payroll components, which are the rates and rules that determine calculated values for some earnings and deduction elements. You can provide new display names for the component groups you want to support to match terminology that's most appropriate for your country or territory.

The Configure Legislations for Human Resources task creates a calculation card definition and payroll components for each component group you enable. When you create elements in certain classifications and categories, the element template associates the element with a payroll component and creates calculation components that you can add to workers' calculation cards. The calculation card creates the components for the component groups you selected. The element template then associates these components with the statutory elements you create. Ensure that you associate these components with your employees through element eligibility for calculation to be processed.

Depending on the legislative rules, if you enable the Federal or Social Insurance component groups and set your country extension on the Features by Country or Territory page to Payroll or Payroll Interface for your country or territory, hiring workers automatically creates a statutory deduction calculation card for them. Ensure that you create eligibility records for your statutory deduction elements before hiring any workers.

Balance Dimensions

Balance dimensions identify the specific value of a balance at a particular point in time, based on a combination of criteria, including time, employee relationship level, jurisdiction, and tax reporting unit. You can provide new display names for the balance dimensions you want to support to match terminology that's appropriate for your country or territory.

The Configure Legislations for Human Resources task creates some predefined balances that the application uses within the statement of earnings, such as Gross Earnings and Net Pay. Additionally, the Net Payment balance is required to set up organization payment methods.

Legislative Data Groups

Use the Manage Legislative Data Groups task in the Setup and Maintenance area to define at least one legislative data group for each country or territory where your enterprise operates.