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 WHEN ? Calendars

WHO ?

Organisatio nal Structure Elements

Payee
Global Payroll Solution

Processing Structure

WHAT ?

Supporting Elements Formulas Brackets System Elements Counts Rate Codes Duration Arrays Dates Variables

Earnings

Deduction s Absence Absence Entitleme Take nt Accumula tors

Organization Structure WHO?

Pay Entity Pay Group Eligibility Groups Element Groups Elements

Processing Structure WHAT?

Process Lists Sections Elements

Calendars:
WHEN?
Payroll Run Process Run the payroll calculator Calendar Group ID Calendars to process Calendar ID Payees to process

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

What ?

Processing Structure (Process List)

Run Type ID Elements to be Processed

 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 Supporting Element Primary Elements are the main elements Supporting Elements are used to build the primary elements and are used in intermediate calculations. Primary Elements are the main elements that directly affect an employees 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 user E.g. Basic Salary from HR Rate Code on Job Data Overtime hours supplied by the user and rate computed within the system. Usually Earnings are added to the employees 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 employees 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: Supporting Elements Supporting Elements are used for the internal calculations of Global Payroll to compute the Primary Elements. Supporting Elements usually do not impact the employees Net and Gross salaries directly.

 Supporting 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 Upload Sheets On-going Payments and Deductions Manual Upload 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 users. 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, user 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 upload 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 upload 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 upload template, it is important to enter data in the correct columns. The Upload 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 upload template.

Absence Event Entry Employees Absences are recorded through the Absence Event Entry page Absences entered on this page are directly integrated with the employees 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 user 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 Support Team
Run Identify/Calcula tion process when requested Run Recalculation process when requested

Run Enquires to check results

Run Finalise process

Re-run Calculati on 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 GrosstoNet calculations Results can be verified for an Open Calendar Recalculate Payroll During verification, the corrections and late entries are made by the business users 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 verifying results for individual employees whereas the report is used to verify 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, supporting 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 verify 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 Verify 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