Payroll Relationships for Kuwait

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, select the person's payroll relationship record and then drill down to view the 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.

Create Payroll Relationship Records

For the rehire process to automatically create a payroll relationship record, keep in kind that you must have a mapping between the system person type and the payroll relationship type. This table 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.

Relationship mapping rules, which map system person types to payroll relationship types, can vary by country or territory. This table shows the mapping between system person types and payroll relationship types that are applicable for Kuwait. Nonworker Unpaid type is excluded from payroll processing.

System Person Type

Payroll Relationship Type

Employee

Standard

Nonworker

Element Entry Only

Nonworker Paid

Standard

Contingent Worker

Element Entry Only

The mapping rules are predefined for legislations provided by Oracle. Remember that you can't create your own payroll relationship types; use just the predefined values.

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. Let's look at this scenario:

  • 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. Take for example, in case of fixed-term contracts, this enables back-to-back periods of continuous service.