Global Payroll 2t636f

Global Payroll: Introduction to core concepts • Introduction to Global Payroll • Structure of Global Payroll – Organization Structure – Processing Structure – Calendar Structure • Introduction to Elements

What is Global Payroll? • A Rule Based Engine for performing the Payroll calculations • Tightly integrated with PeopleSoft HRMS • Completely flexible structure that can be configured to handle complex requirements • Minimum customization required to handle country requirements. • PeopleSoft delivers few Country Extensions while others need to be configured using the setup tools.

Structure of Global Payroll: Payroll

WHO ?

WHEN ? Calendars

Organisatio nal Structure

Processing Structure

Payee

WHAT ?

Global Payroll Solution Elements

ing Elements

Deduction s Absence Absence Entitleme Take nt Accumula tors

Earnings

Formulas

Counts

Arrays

Brackets

Rate Codes

Dates

System Elements

Duration

Variables

Organization Structure WHO? Pay Entity Pay Group Eligibility Groups Element Groups Elements

Processing Structure WHAT? Process Lists Sections Elements

Calendars: Payroll Run Process Run the payroll calculator

WHEN?

Calendar Group ID Calendars to process Calendar ID Payees to process

What ?

Processing Structure (Process List)

Run Type ID Elements to be Processed

Who ? Organisational Structure (Pay Group & Pay Entity) Calendar Period ID (Pay period to process)

• Organization Structure – Elements: building blocks of payroll – Element Group: grouping of elements – Eligibility Group: To define the eligibility of various classification of employees – Pay Group: To classify the employees on the basis of Payroll frequency or Payment Date • Processing Structure – Element: building blocks of payroll – Sections: Sets of elements that need to be processed in the specified order – Process List: Specifies the order in which the Sections need to be processed and the Process Type. Also indicates the Net and Gross accumulators • Calendars – Calendar Period ID: Specifies the Begin and End Date and Frequency of processing – Calendar: Links the organization structure to processing structure. It also specifies the payment period. – Calendar Group: Groups the calendars that need to be processed together in a single payroll cycle.

Elements • Elements are the building blocks of Global Payroll • An element can be classified as Primary Element or ing Element • Primary Elements are the main elements • ing Elements are used to build the primary elements and are used in intermediate calculations. • Primary Elements are the main elements that directly affect an employee’s pay – Earnings – Deductions – Absence Entitlement – Absence Take – Accumulators Elements: Earnings and Deductions • In Global Payroll, an Earnings or a Deduction can be defined in the following ways: – Amount – Unit X Rate – Unit X Rate X Percent – Base X Percent • The value or the element or for any of the components can either be calculated

automatically within the system or it can be supplied by the – E.g. Basic Salary from HR Rate Code on Job Data – Overtime hours supplied by the and rate computed within the system. • Usually Earnings are added to the employee’s Gross Salary and Deductions subtract from the Gross to get the Net Salary • The Eligibility of the elements is derived from the Organization Structure • The order of processing is derived from the Processing Structure. • • • •

Elements: Entitlement and Take Entitlement is what an employee is eligible for. – E.g. 20 Days of Annual Leave per year, 5 Days of Sick Leave at full pay Take is what an employee applies for. – E.g. Employee applies for 3 days of Sick Leave An Absence can be linked with a corresponding Deduction for cases that impact the employee’s salary. E.g. Unpaid Leave An Absence can either be Frequency based or Per Absence – Frequency Based e.g. Annual Leave – Per Absence e.g. Maternity Leave

• Frequency Based Entitlement gets resolved automatically on periodic basis • Per Absence Entitlement gets resolved only when the event occurs. Elements: Accumulator • Accumulators are elements used to store the cumulative values of Earnings and Deductions during payroll process. • Amounts can be accumulated for a designated period of time • Accumulators can be defined manually or automatically (generated by system). • An Accumulator can be of the following two types: • Periodic Accumulator: This refreshes for every period. E.g. Gross Salary, Net Salary • Balance Accumulator: This extends across pay periods. E.g. Year To Date accumulators.

Elements: ing Elements • ing Elements are used for the internal calculations of Global Payroll to compute the Primary Elements. • ing Elements usually do not impact the employees Net and Gross salaries directly.

• ing Elements can be of two types – Data Retrieval Elements e.g. Arrays, Rate Codes,brackets etc – Calculation Elements e.g. Formulas, Duration, Date,counts etc

• • • • •

Online Data Entry Why Overrides? One Time Payments and Deductions – Manual – Sheets On-going Payments and Deductions – Manual – Sheets Absence Event Entry Payee Triggers

Why Overrides? • PeopleSoft delivers an override facility to the calculated elements by which the system calculations can be overwritten by the s. • Overrides may be required as a Data Entry only. E.g. Number of Hours for Overtime Elements or Share Save deductions

They can also be used to Override the system calculated value. E.g. system computes LTA for employees, may choose to override the auto-generated value for an employee. • An override can be added only to a specific calendar or it can be added to a series of periods with a Begin and End Date. • Calendar specific overrides are called Positive Input Override • On-going overrides are called Earnings/Deduction assignment •

• • •

•

One Time Payments and Deductions One Time payments and deductions are made through Positive Input. The payments or deductions are made at payee level for a single pay period. We will cover two ways of entering positive input: – Manual entry through the Positive Input pages – Bulk entry via a pre-defined template Navigation:

Home > Global Payroll & Absence Mgmt > Payee Data > Assign Earnings and Deductions > One Time(Positive Input) It is important to consider the following points: • PI should be given on the correct Calendar ID • PI should be given to the correct Employee ID and Employee Record # • PI will be in the Payroll results only when the Calendar is recalculated. • While filling the template, it is important to enter data in the correct columns. On-going Payments and Deductions • On-going payments and deductions are made through Element Assignment by Payee • Such overrides span across several Pay Calendars and have a Begin date and can have an End Date • We will cover two ways of entering recurring overrides:

– Manual entry through the Earnings/Deduction Assignment – Bulk entry via a pre-defined template • Navigation: Home > Global Payroll & Absence Mgmt > Payee Data > Assign Earnings and Deductions > Element Assignment by Payee It is important to consider the following points • Correct Begin and End dates should be given to the Recurring overrides • If no End date required, leave the field blank • It should be given to the correct Employee ID and Employee Record # • The tool does not handle correction of any existing data, so if End Date has to be added to any existing data then that has to be done manually. • While filling the template, it is important to enter data in the correct columns. • The Tool can handle corrections to existing data and the addition of End dates, provided that Begin Date of the row to be updated is entered correctly in the template.

Absence Event Entry • Employees Absences are recorded through the Absence Event Entry page • Absences entered on this page are directly integrated with the employee’s payroll elements e.g. Unpaid Leave deduction • The Absence Balances get updated when the Absence Calendar is processed. • Usually the Absence Calendar is processed before the Payroll Calendar in the same Calendar Group • Navigation: Main Menu > Global Payroll & Absence Mgmt > Payee Data > Absence Event The Absence Process • During Absence Event Entry, the selects an Absence Take (type) for an employee with a Begin and End Dates • During Absence processing, the system first resolves the Absence Entitlement and determines the Balances, • Next, the Absence Take element is resolved and the Balances are updated.

In General: • If an employee's entitlement balance is insufficient, then the Absence rules may be configured to do one or more of the following: – Generate Positive Input for a deduction from pay – Transfer the Take to a different entitlement – Generate warning messages • An absence Take may also be configured to generate payments to an employee, for example during maternity leave • Correct Absence Take should be selected for the employees applying for Absence Events • Correct Begin and End Dates should be entered • If the Begin Date falls in the previously Finalized calendar then Retroactivity is triggered. • If an employee applies for the same Absence Type again then a new row should be added and the existing row should not be amended or corrected.

• If absence is applied for an employee with insufficient balance then an unpaid leave deduction will be computed automatically. Triggers • Triggers are used to identify subsequent changes to payee data. • It identifies those payees that must be calculated due to an employment event such as hire, rehire, position move or compensation change. • It allows the Global Payroll to Calculate only those payees that have employment event changes. • There are three types of Triggers: – Iterative – Segmentation – Retro • If any of the triggers are generated erroneously then they need to be cancelled before the payroll is processed. • Similarly, if Trigger is not generated for any employee then they can also be manually entered • Navigation to cancel or add triggers:

– Main Menu > Global Payroll & Absence Mgmt > Absence and Payroll Processing > Review Triggers

Processing, Result verification and Reports • • • •

Stages of Processing a Payroll Reviewing Results Reports used for Result Verification Post Payroll Activities Stages of Payroll Process Payroll Team

Run Identify/Calcula tion process when requested

Re-run Calculati on process

Run Enquires to check results

Run Recalculation process when requested

Run Finalise process

Open Calendar • This is the first stage in Payroll Processing • When the Payroll Calendar is Identified / Calculated for the first time, it is called an Open Calendar • The Identify process identifies all the employees that will be considered in the payroll run • The Calculate Process resolves all the elements for each of the identified employee and performs the Gross–to–Net calculations • Results can be verified for an Open Calendar Recalculate Payroll • During verification, the corrections and late entries are made by the business s and the payroll should be Recalculated for the changes to take effect • This is an iterative process and it picks up and recalculates those payees with data changes flagged by System Triggers • Alternatively, the process can also be rerun for all the employees irrespective of the System Triggers

Reviewing Results • Global Payroll Results can be reviewed using the online Results by Calendar Group component or by using the Pay Result Report • Result by Calendar Group is used for ing results for individual employees whereas the report is used to the results of all the employees together Result by Calendar Group • Navigation: Main Menu > Global Payroll & Absence Mgmt > Absence and Payroll Processing > Results By Calendar Group • It shows by calendar ID, payee earnings, deductions, accumulators, ing elements, Absence takes, Absence Balances and positive input and includes retroactive calculations

Pay Result Report • Navigation: Main Menu > Global Payroll & Absence Mgmt > Absence and Payroll Processing > GP Pay Result Report • This is a Report that can be used to payroll results by individual elements for all the employees • It can be generated before finalizing the calendar and can be run after each trial run • It lists down the list of all the Earnings and Deductions that are processed for all the employees in the running calendar Finalize Process • When the results are thoroughly verified and are satisfactory, the next step is to Finalize the calendar • Payroll can not be reprocessed for a Finalized calendar • All the post payroll processes like Banking, Payslips, and General Ledger can be run only for the Finalized calendar

Post Payroll Activities • When the payroll calendar is finalized, there are normally some post-payroll activities to be run, but these will depend on the country implementation. They may include the following: – Pay Advices(printed or electronic) – Banking processes, for automated payment of net pay to employees, and deductions to recipients – General Ledger processes, for financial reporting – Refresh of the EPM Database, for general reporting • Payroll processing has the following stages – Identify/Calculate – results and recalculate – Finalize • For verification of results, the online Result by Calendar Group page can be used or GP Pay Result Report can be used