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Payroll statutory units are legal entities that are responsible for paying workers,
including the payment of payroll tax and social insurance

A payroll statutory unit can pay and report on payroll tax and social insurance on
behalf of one or many legal entities, depending on the structure of your enterprise.

For example, if you are a multinational, multicompany enterprise, then you register a
payroll statutory unit in each country where you employ and pay people. report on
You can optionally register a consolidated payroll statutory unit to pay and workers
across multiple legal employers within the same country. You associate a legislative
data group with a payroll statutory unit to provide the correct payroll information for


Legislative data groups are a means of partitioning payroll and related data.

At least one legislative data group is required for each country where the enterprise

Each legislative data group is associated with one or more payroll statutory units.

Each payroll statutory unit can belong to only one legislative data group.

Payroll-related information, such as elements, is organized by legislative data groups.

 Marks a legislation in which payroll is processed.

 Is associated with a legislative code, currency, and its own cost allocation key
flex field structure.
 Is a boundary that can share the same set up and still comply with the local
 Can span many jurisdictions as long as they are within one country.
 Can contain many legal entities that act as payroll statutory units.
This figure illustrates a simple configuration where the enterprise has only
one legal entity that is both a payroll statutory unit and a legal employer.
This figure illustrates an enterprise that has one payroll statutory unit and
multiple legal employers and tax reporting units.
One Payroll Statutory Unit and Two Tax Reporting Units
One Payroll Statutory Unit with Several Tax Reporting Units
Multiple Payroll Statutory Units with Several Tax Reporting Units
Define Jobs and Positions
Jobs are typically used without positions by service industries where
flexibility and organizational change are key features.

As part of our initial implementation, we specify whether to use jobs and

positions, or only jobs.

Basic details for a job include an

effective start date,

a job set,

a name,

and a code.

A job code must be unique within a set.

if you create a job with the code DEV01 in the Common set, then you can't
create a job with the same code in any other set.

Benchmark Information
You can identify a job as being a benchmark job.
A benchmark job represents other jobs in reports and salary surveys. You
can also select the benchmark for jobs. Benchmark details are for
informational purposes only.

Progression Information
A progression job is the next job in a career ladder.

Progression jobs enable you to create a hierarchy of jobs and are used to
provide the list of values for the Job field in the Promote Worker and
Transfer Worker tasks.
The list of values includes the next three jobs in the progression job
For example, assume that you create a job called Junior Developer and
select Developer as the progression job.

In the Developer job, you select Senior Developer as the progression job.
When you promote a junior developer, the list of values for the new job will
include Developer and Senior Developer.

You can select one of these values, or select another one.

Jobs and Grades

You can assign grades that are valid for each job. If you're using positions,
then the grades that you specify for the job become the default grades for
the position.
This figure illustrates the software industry job setup.

Positions are typically used by industries that use detailed approval rules,

which perform detailed budgeting and maintain headcounts, or have high

turnover rates.

This figure illustrates the retail position setup.

This figure illustrates the hospital position setup.

Job and Position Lookups:

Job Lookups

Lookup Type Description

JOB_FUNCTION_CODE Describes the primary function of a job.

Used for grouping and reporting jobs of like functions.

MANAGER_LEVEL Describes the seniority of a manager.
EVAL_SYSTEM Identifies the evaluation system used for the job or position.
EVAL_SYSTEM_MEAS Identifies the measurement unit for the evaluation criteria.
Position Lookups
The following table describes Position lookup types.
Lookup Type Description
SECURITY_CLEARANCE Classifies if security clearance is needed.
EVAL_SYSTEM Identifies the evaluation system used for the job or position.
EVAL_SYSTEM_MEAS Identifies the measurement unit for the evaluation criteria.
BARGAINING_UNIT_CODE Identifies a legally organized group of people which has the right to

negotiate on all aspects of terms and conditions

with employers or employer federations.

PROBATION_PERIOD Specifies the unit of measurement for the probation period of a position.

For example, 365 Day, 52 Week, 12 Month, or 1 Year.

Define Grades

From the Manage Grades page we can create grades to record the
level of compensation for workers.

Create grades for multiple pay components, such as salary, bonus,

and overtime rates
Define one or more grades that are applicable for jobs and positions

Grades and Sets

We assign each grade to a set.
If you assign a grade to the common set, then the grade is available
for use in all business units.

To limit a grade to a single business unit, you can assign it to a

set that is specific to that business unit.
Grade Steps
Grade steps are distinct increments of progression within a grade. You
can set up grades with or without grade steps.
The following figure illustrates the difference between grades with and
without steps.
Grade Rates
Grade rate values are the compensation amounts associated with
each grade. You can set up rates at the same time that you
create grades, or set them up independently from grades.

For grades with steps, you set up the step rates when you include
them in a grade ladder. Grade rates are optional.

Grade rates contain the pay values that are related to each grade.

Grade rate values can be either a fixed amount or a range of values,

and you can set up rates for different types of pay such as salary,
overtime, and bonuses.

This figure illustrates a grade that has two rate types associated
with it:

 Salary rate type that has a range of values

 Bonus rate type with a fixed amount
This figure illustrates a different grade that has two rate types
associated with it:

 Salary rate type that has a fixed amount

 Overtime rate type that also has a fixed amount

Grade Ladders
You can combine grades into grade ladders to group your grades or
grades with steps in the sequence in which your workers typically

For example, you might create three grade ladders for your enterprise:
one for technical grades, another for management grades, and a third
for administrative grades.
We create grade ladders either from the
Manage Progression Grade Ladders page (in the Compensation work
area) or
from the Manage Grade Ladders page (in the Workforce Structures
work area).
Grade ladders describe the grades and steps to which a worker is
eligible to progress and compensation value associated with that
grade and step.
You may create different grade ladders for your enterprise:
one for technical grades,
another for management grades,
and a third for administrative grades.