Implementation Issues:
1. Global Payroll:
Global organizational has the following main characteristics.
Multiple locations across Multiple countries.
Multiple Languages.
Multiple currencies
Diversified Government Rules.
1.1 Global Payroll Architecture:
Payroll system that gives you control over all aspects of your payroll operation in a multinational environment.
A single, scalable platform enables you to install and operate payrolls that fully comply with local requirements on a worldwide basis.
Preferred language or currency and design your payroll to meet your exact needs.
Two complementary pieces a core application and related country extensions.
All the country extensions can coexist together within the same database.
1.1.1 Core application:
A rules-based engine- defines and executes payroll and absence calculations.
It doesn’t embed payroll-specific logic or computations in application code. Instead, it specifies all business application logic, such as earnings, deductions, absences, and accumulators, in terms of payroll and absence rules.
It allow you to enter and maintain payroll rules through a set of panels.
A processing framework—a flexible way to define and execute payroll and absence processing flows using components such as calendars, run types, pay periods, and process lists.
1.1.2 Related country extensions:
A design that’s built on the core application.
This isolate country regulatory rules and user-defined rules from the core payroll application.
Statutory and customary components specific to individual countries:
Payroll and absence rules, such as earnings, deductions, absence entitlements, and absence take.
Payroll and absence processes.
Reports such as Payroll Register, Payslip, Year-End.
Online panels to accommodate your local requirements.
Self-service applications to enable employees and managers to display and print online
Data such as payslip information as well as create and maintain data such as personal information and bank information for direct deposit.
Centralized or Decentralized Implementation:
PeopleSoft Global Payroll supports multinational as well as local installation scenarios.
All the country extensions can coexist together within the same database.
For example, you may decide to install PeopleSoft Global Payroll at your worldwide corporate facilities located in the United Kingdom and run the payrolls for your subsidiaries located in the United Kingdom, Mexico, Spain, Australia, and Japan from there as well.
Multilingual Functionality:
Work in your preferred language.
Data is defined in one language but can be presented to the user in any language.
PeopleSoft-supported languages: Canadian French, Dutch, English, French, German, Italian, Japanese, Portuguese, Spanish, and Traditional Chinese.
Smooth Currency Handling:
Employees may have their salary stated in one currency, have their payslip calculated in another
Full Euro Compliance
1.1.3 HRMS, Time and Labor, and GL Integration:
PeopleSoft Global Payroll is integrated with both PeopleSoft General Ledger and third-party general ledger systems.
PeopleSoft Payroll Interface, PeopleSoft North American Payroll, and PeopleSoft Global Payroll are three separate products built using the same technology (PeopleTools), and are designed to coexist in the same database.
1.1.4 A Comprehensive Solution
Effective Date Processing
Global Payroll is completely effective date driven. Rules, employee data, currency values and more are all keyed by effective date—maintaining a complete history of all changes made in the system.
Powerful Rules-Based Engine
PeopleSoft Global Payroll is a rules-driven system. This means that you define the rules that determine calculations, processes and results. Once you’ve defined these rules, you use them as long as they remain correct. If a change occurs—for example, your organization changes a policy—you simply change the affected rule.
No Programming Required
You can use PeopleSoft Global Payroll to construct a payroll system tailored to your specific needs without having to engage in any programming or program modifications. Simply by entering data into the various online panels you will be able to create and use your payroll system. With no payroll rules in the code line, you are not dependent on programmers to make system changes. All of this capability relies on the core application foundation.
Exceptional Flexibility
An element is the smallest component of PeopleSoft Global Payroll. Elements are building blocks that relate to other building blocks to define and form your payroll system. Each element is defined once. Then you can use it anywhere in the system over and over again. You don’t waste your time defining the same element again in a different place. And these elements can be put together in countless ways to produce a payroll system unique to your needs.
Easy Access to PeopleSoft Human Resources Data
PeopleSoft Global Payroll combines several types of elements to make the rules for your payroll:
Data retrieval elements—such as system elements, arrays, brackets, and rate codes. These elements are very powerful and enable you to access any data (field or table) from the Human Resources database, as well as table data that you set up directly in Global Payroll without any code programming. This can be data delivered by PeopleSoft or specific data built by the customer.
Calculation and definition elements—more complex elements such as variables, dates, durations, rounding rules, counts, proration rules, and formulas that enable you to define calculation rules. For example, formulas enable you to define a calculation to meet your exact needs for defining earning or deduction rules, retroactive payments, or proration.
Payroll and absence elements—such as earnings, deductions, absence entitlements, absence take, and accumulators. All of these elements can be combined in an unlimited number of ways to produce the results you need for your payroll processing.
Combining Elements Into Rules
PeopleSoft Global Payroll is a system that offers extreme flexibility in defining and customizing the rules for calculating a payroll without modifying or customizing code. The core engine contains no payroll rules, no preset sequence, and no tax algorithms. Instead, you create and store the rules as data entered through the online panels. These rules you create—the data—will drive the system’s core application, thereby defining the actual payroll process. Think of a “rule” as what defines how an element is calculated. Rules actually define the payroll process itself. Each country using PeopleSoft Global Payroll will define its own rule definitions.
Once you have defined your elements and rules, you have defined the payroll process itself.
Payroll Elements
Defining earnings and deductions is at the heart of any payroll system. In PeopleSoft Global Payroll, earnings and deductions are calculation rules, and like all rules in the system, you have control over their content and processing.
Earnings
When defining earnings in Payroll, you can specify:
The calculation rule—such as flat amount, Base x Percent, Rate x Unit x Percent, and Rate x Unit.
The frequency at which the earnings should be paid.
The retroactivity calculation behavior.
The rounding and proration rules.
How to accumulate the earnings (calendar year-to-date, tax year-to-date, etc.).
Membership into any applicable accumulator.
How the calculation is controlled—by the type of run (regular, supplemental, thirteenth month, and so on), type of payment (commission payment, regular wages, bonus wage, and so on), or human resource action and reason (termination, leave of absence, and so on).
Deductions
Defining earnings or a deduction is almost identical, except that defining a deduction requires a few additional setup items to specify:
How arrears are processed (for example, when there is not enough net pay to take an entire deduction, should the portion of the deduction not taken be deducted at another time?).
The banking-related information.
Flexible Accumulators
As you make payments, take deductions, and perform calculations, you’ll frequently want to track accumulated amounts, or balances. In PeopleSoft Global Payroll we call these accumulators.
PeopleSoft Global Payroll makes it easy to define and use accumulators, and also automatically generates certain accumulators based on data you’ve entered on the Payroll System Suffix panel group.
1. Members: elements to accumulators.
Which elements should be accumulated. For each element you can indicate:
The accumulator sign: Add or Subtract.
The percentage to accumulate.
You can specify whether the accumulate timing is:
As contributing: as each contributing element (such as an earnings or deduction)—is resolved, the accumulator is updated to reflect the new value.
As encountered: when a contributing element to an accumulator is resolved, the accumulator itself is not automatically updated with the new value. Instead, the accumulator is resolved only when it is encountered on the process list.
After calculation: after the payroll process has been completed. The accumulator retains its original value at the beginning of the processing run, and at the end of the calculation the value of the current period will be added.
2. Period: Period, Segment Period, Month, Quarter, Year, User-defined.
The period of time that you need to accumulate data.
By payment period, that can be used in the future as a prior pay period.
By segment period (Gross to Net calculation) that can be used to calculate items such as gross pay and net.
Month to Date/Quarter to Date/Year to date for defining your calendar, fiscal, tax, or any other period of time with a start date or month.
A custom period that enables you to define any period of time with a begin and end date.
3. Levels: Employee, Job, User defined additional keys.
The level on which to accumulate. This can be at the employee level, the job level (a multijobs employee can have one accumulator per job for the same earning[s] and deduction[s]), as well as user-defined levels such as contract number, company, establishment, or department.
4. Powerful and Easy-to-use Formulas
Using the formula element, you create your own, customized, fully flexible elements using mathematical and logical operands. We know every customer is unique and has unique needs. To meet these needs, we have defined the formula element as a place where you can easily define a unique formula, but still have it fit into PeopleSoft Global Payroll. Using formula elements, you can enter sophisticated rules and mathematical formulas. The attributes of the types of formulas you can build are:
If, Then, ElseIF, And, Or, In, Minimum, Maximum, Average, or Summary mathematical commands.
Nested formula statements.
Add, subtract, multiply, divide, less than, greater than, equal to, or not equal to mathematical commands.
The rounding rules.
The ability to retrieve value(s) from prior calculation periods.
Let’s look at an example of a formula. We’re going to plan a simple formula that could be used as a pension deduction. If the basic earnings are less than 10,000.00, then the pension deduction is 1% of basic earnings. If the basic earnings are greater than or equal to 10,000.00, then the pension deduction is 1% of the first 10,000.00 and 2% of the remainder. We want the formula to resolve to the amount of the deduction.
The formula will be the following:
If basic comp < 10,000 then pension = basic comp * .01,
else pension = (10,000 * .01) + ((basic comp - 10,000) * .02)
Endif
If your requirements are in words, it’s an easy step to turn them into a real formula. You can then use the Formula panel and create your formula online. All the definition is external and comprehensive for the functional user, you don’t need an IT resource anymore for code programming.
5. Convenient Messages Handling
By creating a specific kind of message element to be used in a formula, PeopleSoft Global Payroll enables you to manage your custom warning and error messages during batch processing. This gives you great flexibility in creating warning or error messages that suit your organization’s specific batch processing needs.
6. Rounding Rules
When you are performing calculations that resolve to a numerical value, you will often want to round the resulting value to suit your needs. You will use rounding rules to do this. For example, let's say you define a rounding rule that truncates all resolved values to only two decimal places.
During a calculation, a resolved value was 2.833333. The rounding rule would truncate the value to be only 2.83. 2.83 is the value that would be stored or used in further calculations.
Once you have defined your rounding rule elements, you can apply them to other elements throughout the system to determine how rounding will take place.
7. Payee Data and Overrides:
PeopleSoft Global Payroll enables you to enter data on a payee-by-payee basis or for all payees at once—whatever works best for you. By using the concept of payees, we make sure you have the full flexibility you need. A payee can be an employee, or a non-employee, such as a contractor or pensioner. This enables full streamlining of your payment processes.
Positive input refers to earnings and deduction data entered for a single pay period. The data—such as hours worked, or a one-time bonus—is specific to a payee and can change each period.
You can enter positive input manually or receive it from other applications such as PeopleSoft Time and Labor.
PeopleSoft Global Payroll offers many optional features you can use when entering positive input. You can select the currency that applies to an entry, apply a compensation rate from a previous period, override a payee’s department, job code, or location, or enter information specific to your organization that can be transmitted to your general ledger system.
For any pay period, overrides may be entered for a single employee. For example, you may pay a particular employee a bonus one time during the year, or capture variable hours worked in a pay period for those employees working on an hourly basis. PeopleSoft Global Payroll has a hierarchy of rules that will be applied when calculating elements of pay. The override strategy is very wide and enables you to override a value or an element at various levels such as pay entity, pay group, payee, payee element, or pay calendar
8. Absence Time Processing
Correctly tracking and processing the time a payee is not at work is critical to producing an accurate payroll. You need to know when payees are out sick, on vacation, or absent for any other reason—and most importantly, whether to pay them for this time.
PeopleSoft Global Payroll provides an integrated set of absence management tools that give you complete control over all aspects of absence management—from defining valid absence reasons and accrual policies to defining the exact conditions that must be met before an absence can be paid.
PeopleSoft Global Payroll enables you to:
Define your work schedules and assign them to payees.
Define the policies or rules your organization follows to track and compensate payees for absences by creating absence entitlement and take elements. Absence entitlement elements define the conditions under which payees accrue paid time off and the amount of time they can accrue. Absence take elements specify the rules the take process will apply to determine whether an absence should be paid or unpaid. The absence rules are very powerful and flexible. Following are some of the key features:
Accrual method and frequency. For each absence entitlement element you create, you will indicate whether entitlement should accrue per absence (for example, 40 days per illness) or at the frequency you specify (for example, 2 paid time off days per month).
Entitlement links. You can link each absence to one or more entitlement elements, and you must specify the order in which to use entitlement .
Negative entitlement. You can specify what should happen if there’s not enough entitlement to cover an absence: allow a negative entitlement balance (up to the limit you specify), treat as unpaid time, or use entitlement associated with another take element.
Processing periods. The absence period can be the same or different from the pay period. For example, January absences can be paid in January or February. You can specify the target calendar pay for each absence process.
Enter details of a payee’s absence whenever an absence occurs—past, present, or future.
Automatically generate payroll entries of paid or unpaid earnings for streamlined absence processing.
9. Unique Features
In PeopleSoft Global Payroll, you can choose the events (such as a transfer, salary change, and so on) that trigger segmentation or retroactivity, and streamline your payroll to compensate for events that occur before or after the payroll has been closed.
9.1 Segmentation Processing
In PeopleSoft Global Payroll you can “segment” components of pay based on such events as changes in compensation, employee status, or job changes during a pay period. For example, if an individual changes jobs in the middle of a pay period and your organization has a practice of separating components earned in the first job from those earned in the second job, you can set up your system to trigger segmentation of earnings results on the pay slip when there is a change to the job change action/reason field.
In PeopleSoft Global Payroll there are two types of segmentation: Period Segmentation and Element Segmentation.
9.1.1 Period Segmentation
Use period segmentation when an element (such as compensation rate) changes in mid-period, requiring all other elements in the process list to be calculated multiple times on either side of the date on which the change took place. The system calculates each element more than once, using the components that were effective during the different time segments. The system keeps the results of these calculations separate, with the objective of creating two gross-to-net result sets.
9.1.2 Element Segmentation
Use element segmentation when an element changes in mid-period, requiring the affected element (and perhaps a subset of other elements) to be calculated multiple times on either side of the date on which the change takes place. Unlike period segmentation, the system segments only the elements you select, and creates separate result columns only for the specified elements. In element segmentation, there is only one gross-to-net result set.
As an example of element segmentation, let’s assume your pay period spans one month with 31 days, beginning on the first day of the month and ending on the last day. If a payee’s base rate of pay (for example, 4,000 as of begin pay period) were to change in the middle of the month (for
example, 5,000 as of the 16th), then the gross to net calculation factors would change on that date. The system will separate (segment) the gross-to-net components of pay and itemize them on the pay slip for the periods of time when the employee was earning one salary (4,000 * 15/31) and when he was earning the new salary (5,000 * 16/31).
9.2 Count and Proration Rules Elements
Count and proration elements are closely tied to segmentation.
A count element is a process by which you can count the number of days or hours from a specific period of time. The count element refers to the work schedule associated with each payee so that the correct workdays are counted.
A proration is the process by which the system takes a calculated result and applies a coefficient to it. This coefficient factor is defined as a subset of the total pay period, such as a slice or segment period, over the total pay period, known as a proration rule. When defining a proration rule, you are actually defining what values to use as the numerator and denominator that comprise the proration rule factor.
9.3 Retroactivity Processing
In a perfect world, all data in your payroll database would be 100 percent accurate at the time of your payroll run. But this is not always true. There are times when you must correct or add data that applies to a specific pay period after the payroll for that pay period has been processed. In such instances you will use PeopleSoft Global Payroll’s retroactivity features.
There are two basic methods for calculating retroactivity in PeopleSoft Global Payroll: corrective retroactivity and forwarding retroactivity.
9.3.1 Corrective Retroactivity
Use this method to recalculate the elements of a past pay run, updating all accumulators (all balance accumulators are updated as well as those for the segment period). This results in a complete recalculation of the pay run for that segment period. The recalculated pay run replaces the previously calculated run. However, the original pay run calculation remains available for auditing and reporting purposes. Rather than forwarding retro deltas to the current calendar as an adjustment, the system sends any adjustment to the “Net to be Paid” or any specific deductions for the recalculation period to the banking process for further handling.
9.3.2 Forwarding Retroactivity
Use this method to recalculate the elements of a past pay run and carry forward the differences between the new calculation and the old to the current calendar period as an adjustment for any elements specified by the user. Unlike corrective retro, forwarding retro does not result in the replacement of the original results, and balance accumulators are updated not in the recalculated period but instead in the current calendar period.
9.4 Flexible Payroll Processing Framework
PeopleSoft Global Payroll offers an extremely flexible payroll processing framework that encompasses calendars, generation control, and iterative processing.
9.4.1 Payroll Processes
With PeopleSoft Global Payroll, once you’ve defined your payroll elements, you can organize them into process lists that tell the system which elements to resolve during a payroll run.
Because our application enables you to tailor processing to fit your specific needs, payroll processing is streamlined and efficient. Typically, a process will consist of one or more of following types of elements, depending on your requirements:
Taxable earnings.
Non-taxable earnings.
Pre-tax deductions.
Tax deductions.
Post-tax deductions.
Calendars
Once you have defined the process you want to run, PeopleSoft Global Payroll uses eligibility groups, pay groups, and calendars to tie the elements in your process to the payees you need to process.
Eligibility groups indicate the specific elements for which a certain payee population is eligible.
You can then group employees with similar payroll needs together for processing into what we call pay groups. Each payee is assigned to a pay group and an eligibility group.
PeopleSoft Global Payroll enables you to create all your calendars in advance to streamline
processing. Calendars identify:
The type of payroll being run. These can be pay runs such as regular, supplemental, advance, thirteenth month, and final type payroll runs.
The start and end dates for each pay period.
The date of any payment generated during this pay period.
Groups of employees processed during this period.
Generation Control
Generation control elements enable you to indicate to the system whether to process an element based upon criteria you define. This is accomplished by including or excluding one or more parameters that you define. You can define these parameters at different levels, such as HR status (active, suspended, terminated, and so on), action (for example, hire, promotion, transfer), frequency, segment status, and formula.
For example, let’s say that you have an employee who is paid weekly and she has a monthly medical deduction of 100 that she wants deducted only once a month. You can define the generation control—frequency parameters—so that this deduction is only taken out of the first pay period of the month.
Running Payroll with Iterative Processing
PeopleSoft Global Payroll enables you to calculate the gross-to-net process at any time during the pay period so you can preview the results of the payroll calculation, based on what is known up to that point. Should you run the preliminary payroll at the beginning of the month for salaried employees, when you run your final payroll at the end of the month the system will recalculate payments only for those employees who have had changes since the preliminary payroll(s) were run. The system detects such changes automatically with the use of triggers—no user intervention is necessary. Unlimited preliminary runs can be processed for a pay period.
2. HRMS 8.0:
4. Accounts Payable
- Purchasing modules
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