payroll fundamenal 02082013

8/9/2019 Payroll Fundamenal 02082013

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Table of Contents

Contents1 Introduction to Payroll Earnings and Deductions......................4

1.1 Earnings.........................................................................................................4 RetroPay:.................................................................................................4 Advance Pay............................................................................................ 4 Net-to-Gross:...........................................................................................4 Proration:.................................................................................................4

1.2 Deductions.....................................................................................................4 Proration:.................................................................................................4 Savings and Retire ent...........................................................................4 !"ird Party Pay ents:..............................................................................4 Arrears #anage ent:.............................................................................. 4 $ene%ts Pre iu s................................................................................... 4

1.& Gross and Net Earnings..................................................................................'1.4 Ele ents........................................................................................................'1.' Prede%ned Ele ents......................................................................................(1.( Glo)al *R and Payroll E+tracts.......................................................................(1., $alances........................................................................................................ (1. or ulas........................................................................................................,1./ Processing......................................................................................................,

2 Ele ent Setu0 or Payroll.........................................................,

2.1 Payroll $alances.............................................................................................2.2 E+a 0le o a De%ned $alance.......................................................................2.& Prede%ned $alance Di ensions.....................................................................2.4 $alance Di ensions in or ula..................................................................... /2.' $alance Attri)utes......................................................................................... /2.( $alance ategories......................................................................................../2., $ase $alances................................................................................................ /2. De%ning $alances eeds................................................................................/2./ De%ning eeds 3sing Ele ent lassi%cations..............................................12.1 reating Individual $alance eeds...............................................................12.11 De%ning $alance eeds................................................................................1

& ast or ula...........................................................................11

&.1 5vervie6......................................................................................................11&.2 !y0es o or ulas........................................................................................11&.& or ula o 0onents...................................................................................11&.4 o 0onent - In0ut 7alues ro Ele ents...................................................11&.' o 0onent - unctions................................................................................12&.( o 0onent 8 State ents.............................................................................12&., De%ning or ula Results and Processing Rules...........................................12&. or ula Result !y0es...................................................................................1&&./ re9uency Rules...........................................................................................1&

re9uency Rules:................................................................................... 1&


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S i0 Rules:............................................................................................. 14

4 Advance Pay Process..............................................................14

4.1 Advance Pay Process....................................................................................1'4.1.1 Note: Processing di;ers or Arrears and Non-arrears 0ayrolls................1(

4.2 Advance Pay )y Ele ent Process.................................................................1(4.& Advance Pay Events.....................................................................................1(4.4 A)sence Ele ent In0uts..............................................................................1,4.' Ele ent Descri0tion.....................................................................................1,4.( In or ation Ele ents...................................................................................14., Direct Pay ent Ele ents.............................................................................14. Processing Advance Pay...............................................................................1/4./ Advance Pay or a $atc"..............................................................................1/4.1 Processing Advanced Pay )y Ele ent..........................................................2

' RetroPay................................................................................. 2

'.1 RetroPay Process..........................................................................................2'.2 *o6 RetroPay ectives....................................................................................................&1


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.2 !"ird-Party Pay ents 5vervie6...................................................................&1

.& !"ird-Party Pay ents...................................................................................&2

.4 Entering !"ird-Party Pay ents or an E 0loyee..........................................&2

.' Payee: 5rgani=ation.....................................................................................&&

.( Payee: ontacts...........................................................................................&&

., Recording !"ird-Party Pay ents or an E 0loyee.......................................&&

. #anaging Deductions..................................................................................&&

./ !"ird-Party Processing Priorities...................................................................&4

.1 Protected Earnings.......................................................................................&4

.11 Producing "ec s? "e9ues or !"ird-Party Pay ents..................................&4


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1 Introduction to Payroll Earnings and Deductions

1.1 Earnings The four ways of calculating earnings are: RetroPay: You use RetroPay to ensure that your payroll run for the current period

reflects any backdated payments or deductions. Advance Pay : Advance Pay enables you to pay an amount to employees for

holiday or other events scheduled for a later period than the current pay period. Net-to-Gross: Net to gross processing enables you to calculate the gross

amount you need to pay to meet a fi!ed net amount" for e!ample a bonus. Proration: Proration enables you to calculate proportionate earnings amounts

whenever payroll relevant data is changed during a payroll period because of" fore!ample" a pay rate change.

1.2 Deductions The five categories of deduction are: Proration: #nables you to calculate proportionate earnings amounts whenever

payroll relevant data is changed during a payroll period because of" for e!ample" achange of allowance or deduction

avings and Retire!ent : $ost enterprises provide plans that enableemployees to save for their retirement. Your company may help too by matching a portionof the amount employees invest.

T"ird Party Pay!ents: Third Party Payments enable you to make bothsingle and recurring deductions from employees% salaries for involuntary deductionsincurred by court debts or fines" and to specify either corporate bodies or individuals aspayees.

Arrears #anage!ent: &f an employee has insufficient funds to pay the fullinstallment of a deduction" you can use Arrears $anagement to determine how 'raclePayroll calculates a partial payment and ad(usts future payments.

$ene%ts Pre!iu!s : You can set up deductions to deduct the premiums thatemployees have to pay to be eligible for certain benefits


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1.3 Gross and Net Earnings )ross earnings are made up of several components such as *alary" +onus" and

Allowances and you create elements to represent these values. You derive net earnings by subtracting the deductions from gross earnings. ,or e!ample" you could define an element called -age for hourly paid employees. You

classify it in the predefined classification #arnings which determines when it is processedin the payroll and what balances it feeds. The deductions that you similarly define arededucted when you process the payroll and they can also feed balances.

1.4 Elements #lements are the components in the calculation of employee pay.

#ach element represents a compensation or benefit type" such as salary" wages" stock purchaseplans" and pension contributions. #lements can have user defined names" types" and values. You can use elements to:

apture any type of information /efine eligibility based on assignment criteria Provide online or batch entry options


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1.5 Predefned Elements Predefined elements are legislative specific for each country.

1.6 Global HR and Pa roll E!tracts )lobal 0R and Payroll e!tracts can report on any earnings" deductions or information elements.

,or e!ample" you can use a ,ull #!tract to report on everyone who has been paid a bonusor contributed to a pension and use a hanges #!tract to report on changes to personal orcontribution data.

1." #alances +alances show the positive or negative accumulation of particular values over periods of time.

The pay values of elements processed in the payroll run feed the balance value.


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1.$ %ormulas #lements are processed during payroll runs according to business rules for each element. $any

of these rules are defined in formulas written using 'racle ,ast,ormula. Payroll formulasfor each element let you calculate the actual payments or deductions that are made duringeach payroll run. The processed results for each element are called Run Results. The RunResults then become balance feeds for different balances. *ome balance feeds arepredefined to feed re1uired statutory balances and you can also create your own balancefeeds to your own user defined balances.

,ormulas obtain some of the re1uired data from entries to their element%s input values. Theformulas also obtain information from database items. $uch of the information in the'racle 0R$* database" including e!tensive information on employees and assignments"is available to formulas as database items.

'racle Payroll has predefined formulas specific to your legislation such as calculations re1uiredfor employee ta! withholding and employer ta!es.

1.& Processing #lement entries are processed by formulas during the payroll run. The payroll run may use a

different formula depending on the assignment status2for e!ample" a different formula foremployees on sabbatical leave. The formula can produce several outputs:

A direct result to update balances $essages for information and control 'ther results that update" stop" or change the sub priority of other element entries


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& Ele!ent etu' for Payroll

2.1 Pa roll #alances Two distinct rules determine a balance value.

Balance Feeds control the type of values to include 34% or 35% Balance Dimensions control the number of values to include.

+alances accumulate the results from processing elements or input values.

-hen you define a balance" you define which elements and input values feed the balance. You can select primary or secondary classifications to include the pay value from all elements

within that classification. ,or e!ample" 3#arnings% or 3+onusable%. You can also selectindividual elements to include specific Pay or &nput values.

The +alance /imension Rules break down into two specific areas: Timespan: This is either predefined periods such as run" period" 1uarter" year or user

defined periods such as hire or rolling year. Level: #ither person or assignment.

2.2 E!am'le o( a Defned #alance )ross #arnings is a balance. )ross6#arnings6Person6YT/ is a defined balance with dimensions.


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2.3 Predefned #alance Dimensions The balance dimensions follow local legislative rules" which either sum the balance since the start

of the ta! year or sum the balance since a transfer from a different ta! district. You cannotchange predefined balances or dimensions.

2.4 #alance Dimensions in %ormula -hen you define a balance" the application automatically generates a database item for each

dimension so you can use it in payroll formulas.

2.5 #alance )ttributes +alance attributes enable you to identify which balances should be used in which reports. Attribute definitions must be defined prior to creating an attribute" which is the intersection entity

between defined balances and attribute definitions. ,or e!ample" a balance attribute couldbe 3*'# #arnings Year to /ate%.

Attributes can be predefined by locali7ations" created as a result of predefined defaults or be user defined.

2.6 #alance *ategories As with element classifications" balance categories are assigned to balances as appropriate. You can group similar balances" such as all earnings balances" into a single category for 1uicker

and easier processing.

2." #ase #alances A +ase balance enables relationships to be implied between two balances. This relationship can

be relied upon when processing and reporting. ,or e!ample" 89oan Repayment could bethe base balance for 89oan Repayment Arrears .


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2.$ Defning #alances %eeds You can select elements to feed a balance in three ways:

Select a primary classification . The run results of all elements in theclassification feed the balance.

Select a secondary classification. You choose which elements from a primaryclassification ;such as #arnings< are to feed the balance by giving theseelements a secondary classification. &t is the run results of the elements that feedthe balance.

Select an individual element. You can select either the run result or an inputvalue to feed the balance. The input value must have the same unit of measure;such as hours or number< as the balance.

You can choose any number of classifications ;either primary or secondary< or any number ofelements to feed a balance" however you cannot use a mi!ture of classifications andindividual elements to feed a balance.

2.& Defning %eeds +sing Element *lassifcations I t"e Earnings classi%cation eeds a )alance@ t"en all ele ents 6it" Earnings

as t"eir 0ri ary classi%cation eed t"is )alance auto atically.

2.1,*reating -ndi idual #alance %eeds A single ele ent can eed any nu )er o )alances. I you c"oose to eed a )alance using an ele ent@ you can eit"er select t"e

run result or an in0ut value to eed t"e )alance.


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2.11Defning #alance %eeds $ot" t"e Ele ent and $alance 6indo6s "ave )uttons t"at o0en a $alance

eeds 6indo6. (ou use t"e Ele!ent )indo) i you 6ant to eed an ele ent to one

or ore )alances t"at individual ele ents eed. (ou use t"e $alance )indo) if you 6ant to eed a )alance ro

eit"er classi%cations or individual ele ents. A 0ri ary )alance is one t"at a single ele ent eeds into. ou can use t"is

ty0e o )alance i no )alance eeds e+ist or it@ 6it" t"e e+ce0tion o t"e)alance initialisation eeds.

5racle *R#S auto atically creates t"e associated eed 6"en you create a0ri ary )alance.

* +ast +or!ula

3.1 / er ie0 or ulas are generic e+0ressions o calculations or co 0arisons you 6ant to

re0eat 6it" di;erent in0ut values. !"ey ta e in0ut ro a 6indo6@ a data)ase@ or a 0rocess@ suc" as a 0ayrollrun and t"ey return values or essages.

3.2 'es o( %ormulas ou can use or ulas to:

alculate 0ayroll run results 7alidate ele ent entry values De%ne s i0 rules or 0rocessing ele ents De%ne )usiness rules or Standard and Advanced $ene%ts De%ne Assign ent Sets or 0rocessing and re0orting

3.3 %ormula *om'onents

3.4 *om'onent -n'ut alues %rom Elements In0ut values are t"e ost eBcient 6ay to access t"e in0ut values o t"e

ele ent 6it" 6"ic" you associate t"e or ula. So e e+a 0les o INP3!S are:

-n'uts are *ours@ Rate@ RateC ode te+t -n'uts are A ount@ Percentage@ Furisdiction te+t


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-n'uts are StartCDate date @ EndCdate date I t"e value is not a nu eric@ t"at is oney@ integer@ nu )er@ or

e+a 0le@ t"en you ust declare t"e in0ut value ty0e date orte+t . Identi y t"e in0uts re9uired or t"e calculation and 6"eret"ey co e ro .

3.5 *om'onent %unctions !e+t unctions Nu eric unctions Date unctions Data onversion unctions unctions to Get 7alues ro !a)les unctions or Accrual !y0e or ulas unctions to all a or ula unctions to Set and Get Glo)als S H Plus

3.6 *om'onent tatements State ents are instructions t"at 5racle ast or ula carries out. ou can use

t"e ollo6ing si! t 'es o( statement Alias State ent AHIAS varna e1 AS varna e2 De ault State ent DE A3H! 5R varna e2 IS constant In0uts State ent INP3!S ARE )onus@ startCdate date Assign ent State ent varna e1 J e+0ression I K !"en K LElseM State ent I e+0ression1 !*EN state ent

LEHSE state entM Return State ent RE!3RN varia)le1@ varia)le2

3." Defning %ormula Results and Processing Rules ou associate ele ents and or ulas )y de%ning 0rocessing rules or t"e

ele ents. ou de%ne 6"at "a00ens to t"e results returned ro t"e or ula ou can "ave one or ore t"an one Processing Rule or eac" ele ent. ou can "ave one or ore results or eac" 0rocessing rule. !"e direct result is t"e Pay 7alue 30date or sto0 entries Return 6arning@ error@ or in or ation essages


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A standard rule s0eci%es 6"ic" or ula t"e 0ayroll 0rocess s"ould use or allactive assign ents.

reate additional rules i you 6ant to use ot"er or ulas or di;erentassign ent statuses.

3.$ %ormula Result 'es or eac" or ula 0rocessing rule you create one or ore result rules. A result rule in or s t"e 0ayroll a00lication "o6 to anage t"e value

returned )y t"e or ula. Direct Result Indirect Result #essage Sto0 30date Recurring

5rder Indirect


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3.& %re7uenc Rules !"e t6o ty0es o rules you can use to control 6"en an ele ent is included in

a 0ayroll run are: +re,uency Rules: De%ne re9uency rules or recurring ty0es o ele ent

6"ere you 6ant to 0rocess t"e at 0eriodic intervals. i' Rules: De%ne s i0 rules i you 6ant conditional 0rocessing o any

ele ent using a or ula to deter ine 6"en to 0rocess and 6"en tos i0.


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t"at any c"anges to 0ay or )ene%ts in t"eir a)sence are re ected 6"ent"ey return to 6or .

5racle Advance Pay also c"ec s t"e overall results 6"en an e 0loyee returnsto 6or as 0ay ents received in advance are li ely to cross over u00erand lo6er ta+ )ands and distort ta+ed lia)ilities.

*ere is an e+a 0le to illustrate a si 0le case: A 6ee ly 0aid e 0loyee is going on leave in 6ee s 24 and 2' is entitled to

0ay or t"at ti e in 6ee 2&. In 6ee 2& t"e Advance Pay 0rocess calculates t"e correct Net Pay 8 net o

ta+ and ot"er deductions@ or 6ee s 24 and 2' and creates a non-ta+a)le 0ay ent o 1' in 6ee 2&.

!"e overall e;ect s"ould )e to 0ay t"e e 0loyee &&/ in 6ee 2& and in6ee s 24 and 2'.

4.1 )d ance Pa Process Advance Pay 0rocess calculates advance to )e 0aid or eac" assign ent. reates a nonrecurring ele ent entry in current 0ay 0eriod. !"is entry is 0rocessed as a 0ost-ta+ allo6ance in t"e regular 0ayroll run or

t"e 0eriod. !"e 0rocess does not generate entries 6"ere t"e a ount calculated is =ero

or negative. #essages are generated or all assign ents 6"ere t"is is t"e case and you


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can vie6 t"ese in t"e t"e Payroll #essage Re0ort. !"e ollo6ing in or ation dis0lays 6"en t"e Advance Pay 0rocess

success ully co 0letes: !"e 0rocess c"ec )o+ is selected. !"e a ount o t"e advance is dis0layed.

I you select t"e De er c"ec )o+@ t"e De erred Pay ents region s"o6s t"e0eriod or 6"ic" 0ay ents to t"e assign ent are de erred to.

.0101 Note: Processing di ers for Arrears and Non-arrears'ayrolls0

.010101 Arrears 'ayrolls !"e 0rocess only 0er or s runs in e ory or 0eriods containing an entry or

t"e ele ent.

.01010& Non-arrears 'ayrolls !"e 0rocess calculates t"e current 0eriod and t"e advanced 0eriods.

4.2 )d ance Pa b Element Process So e locali=ations re9uire an advance 0ay et"od 6"ic" does not aggregate

t"e 0ay ents over t"e leave 0eriod )ut actually calculates a )rea do6no t"e net advance a ount into se0arate a ounts or eac" 0ay anddeduction ele ent or eac" 0ayroll 0eriod 6it"in t"e ti e 0eriods0eci%ed.

Advanced Pay )y Ele ent eets t"is re9uire ent. It can )e used instead oor as 6ell as Advance Pay@ )ut t"e t6o s"ould not )e used oroverla00ing 0ay 0eriods.

T"e Advanced Pay tab in t"e Ele!ent )indo) t"at you use to controlt"e advance 'ay ele!ents a''ears if t"e 2AD34C5EAR6P7legislation rule is seeded )it"in t"e 'ay4legislation4rules0

Si ilarly to t"e Advanced Pay 0rocess@ Advanced Pay )y Ele ent anagest"e overall accuracy o t"e 0rocess )y creating recovery ele ents ineac" 0ay 0eriod.

!"ese ele ents recover t"e e+act a ount advanced or t"at 6ee and not anaggregated a ount. ontinued 0rocessing o t"e e 0loyee to anage0ersonal or ot"er c"anges still ta es 0lace and so do t"e c"ec s ordi;erence in net or additional 0rocessing in t"e return to 6or 0eriod.


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4.3 )d ance Pa E ents I t"e event advance leave )oo ing a00lies to one assign ent@ you use t"e

Advance Pay 6indo6 ro t"e assign ent. I t"e event a00lies to any assign ents@ t"en you use t"e Advance Pay

$atc" Setu0 6indo6 t"at can auto atically create advance 0ay detailsor an assign ent set.

4.4 )bsence Element -n'uts !"e A)sence ele ents t"at you use to record a 0eriod o leave t"at is due

0ay ent in advance re9uires t"e ollo6ing in0uts: Nu )er o "ours?days leave due to )e ta en A)sence Start Date A)sence End Date Pay Date t"is is t"e end date o t"e 0eriod in 6"ic" t"e advance

0ay ent is to )e 0aid Advance 5verride t"is is used to indicate t"at an a)sence s"ould not

)e treated as advance 0aya)le 8 ?N values Advance De er i an e 0loyee receives any additional 0ay ents 6"ile

on leave@ t"e 0ay ents can )e de erred until t"e e 0loyeereturns to 6or 8 ?N values


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4.5 Element Descri'tion All ele ents involved in t"e advance 0ay 0rocess need to "ave certain

attri)utions ar ed u0 on t"e Ele ent


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I 0ay ent is de erred@ t"en t"e a00lication carries or6ard t"e0ay to return 0eriod. I 0ay ent is not de erred@ t"e a00licationa es additional 0ay ent during t"e a)sence o t"e e 0loyee.

!y0ical use 6ould )e to de er 0ay ent until e 0loyee returns to6or .

A ey re9uire ent or all 0rede%ned ele ents is to set u0 lin s to ena)leentries. ou also need to consider any s0ecial re9uire ents or costingadvance 0ay ents and enter cost in or ation at lin or entry level.

4." Direct Pa ment Elements !"e advance 0ay 0rocess auto atically generates t"e ollo6ing direct

0ay ent ele ent entries: Advance Pay!ent: *olds details o t"e 0ay a ount advanced Advance Recovery: 5racle *R#S generates recovery ele ents in

eac" 0eriod to recover advanced 0ay ent a ount. Advance Clear 6': !"is is generated in t"e e+0ected return to 6or

0eriod. I t"e e 0loyee is over0aid during@ or or t"e 0eriod oleave@ t"en t"is a ount is recovered auto atically in t"e 0ay0eriod ollo6ing t"e advance 0ay 0eriod.

Deferred Pay!ents:


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ele ent entries or t"e 0ayroll. !"e e;ective date or t"is 0rocess s"ould)e t"e last day o t"e current 0rocessing 0eriod and t"e Advance EndDate is t"e end date o t"e range o dates to c"ec or a)sences.

o 0lete t"e nor al 0ayroll 0rocesses as nor al.

/ RetroPay

5.1 RetroPa Process ou ay need to anage )ac -dated or late noti%cations o c"anges to

0ayroll 0rocessing. !"is could )e due to retroactive 0ro otion@ salaryincrease@ or retroactive settle ent o 0ay negotiations@ or e+a 0le.Al6ays run RetroPay i ediately )e ore you run a 0ayroll@ and@ orgreatest accuracy@ as close to t"e cut-o; date as 0ossi)le.

!"e cut-o; date is t"e 0oint at 6"ic" all data entry or t"e 0ayroll isco 0lete. ou can run RetroPay:

In t"e ne+t 0eriod or a 0rior 0eriod or e+a 0le@ or a salary raise t"at6as not noti%ed in ti e

or any nu )er o 0rior 0eriods Across ta+ and %nancial years@ )ut you ust c"oose t"e rig"t de%ned-

balance QQQ to recalculate RetroPay auto atically calculates t"e di;erence in results or t"e duration

you s0eci y. Instructor Note ou s"ould contrast t"e use o Retry@ Roll)ac @ and Reversal 6it" RetroPay.

ou can no6 a00ly RetroPay calculations across ulti0le assign ents@ ause ul eature@ or e+a 0le@ i you are 0rocessing a series o 6age

attac" ents or t"e sa e individual )ut 6it" eac" attac" ent attac"edto a se0arate assign ent.


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gross-to-net )alances auto atically.

5.4 Ho0 RetroPa 9or:s Element Entries $ecause t"e ele ent entries are 0rocessed as 0art o t"e regular 0ay cycle@

you "ave a second level o control to anage s0ecial earnings ordeductions. or e+a 0le@ 6"at do you do i t"e result o t"e RetroPaycalculation is a negative earnings a ountQ ou cannot auto aticallyta e t"e oney ro t"e e 0loyee@ and@ even 6it" agree ent@ t"ededuction ay e+ceed t"e earnings or t"e current 0eriod. Additionally@6"at do you do i t"e result is a large earnings a ount and t"ee 0loyee elects to "ave it 0aid in several 0ay 0eriods to o0ti i=e ta+deductionsQ

ust ents are distri)uted

across t"e individual runs re0rocessed. ou ay "ave ulti0le runs inany 0eriod.

RetroPay by Ele!ent: Ena)les you to see "o6 ad>ust ents aredistri)uted at t"e ele ent entry level

En"anced RetroPay: Provides a data-driven ec"anis and is )asedon t"e Retro0ay )y Ele ent solution@ Ena)les you to identi y t"e reasonsor )ac dated c"anges to individual ele ents@ and Re0rocesses an

assign ent ro t"e e+act 0oint at 6"ic" a c"ange occurred rat"er t"anre0rocessing t"e entire 0ay 0eriod )ecause it contains a )ac datedc"ange

ou can use only one ty0e o RetroPay or a 0eriod. ou ust not re0rocesst"e sa e data at a later ti e using a di;erent et"od.

Instructor Note ou ust reco end En"anced RetroPay as t"e standard version o RetroPay

or ne6 users to ado0t. urrently@ En"anced RetroPay is availa)le tot"ese locali=ations: 3.S.@ rance@ Net"erlands@ Ne6 ealand@ and "ina.

!"e Fa0anese locali=ation uses RetroPay )y Run.


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5.6 En8anced RetroPa E!am'le !"e e 0loyee "as a ont"ly 0ay o 1 6it" a ta+ rate o 1 or t"e

Fanuary-#arc" 0eriod. In A0ril@ t"ere is a )ac dated rise to 12e;ective ro Fanuary and t"e ta+ rate c"anges to 2 .

En"anced RetroPay )y Ele ent )rea s do6n t"e 0ay ents and allo6s you to

see all )ac dated c"anges at individual ele ent level.

5." En8anced RetroPa E!am'le !"is e+a 0le s"o6s a 0ayroll run or t"e 0eriods Fanuary-#arc". I t"e current

0eriod is A0ril@ and you run a RetroPay ro Fanuary using t"e En"ancedRetroPay et"od@ t"en 5racle Payroll uses t"e 1 ta+ rate 6"enre0rocessing t"e Fanuary-#arc" 0eriod. or a retros0ective c"ange osalary to 12 @ t"e additional a ount o 2 6ould result in anadditional retros0ective ta+ deduction o 2 or eac" ont"@ using t"e1 rate.


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5.$ %eatures o( En8anced RetroPa Di;erentiates )et6een a corrective c"ange or e+a 0le@ re9uired 6"en you

"ave entered 6rong in or ation and a deli)erate )ac -dated c"angeor e+a 0le@ a )ac -dated 0ay c"ange . Di;erent ty0es o c"ange

re9uire t"e a00lication to 0roduce di;erent results de0ending onstatutory rules. En"anced RetroPay addresses t"ese re9uire entse;ectively.

Su00orts your re9uire ent to di;erentiate )et6een nor al and retroearnings@ usually re9uired or legislative re0orting@ )y ena)ling conte+toverrides. or e+a 0le@ you ay need to re0ort t"e results o a retrocalculation against a di;erent conte+t ro t"e original 0ay ent ordeduction@ suc" as re0orting o retro calculation o social insurancecontri)utions against an alternative contri)ution code.

Introduces retro assign!ent @ 6"ic" 0rovides an individual start date oreac" assign ent. !"is ne6 eature o;ers )etter 0rocessing eBciency )yrunning t"e RetroPay 0rocess only ro t"e date 6"en t"e assign entc"anged.

En"anced RetroPay eli inates t"e unnecessary recalculation o 0eriods 0riorto a retro c"ange. In order to recalculate a 0revious 0ay run@ t"e e+istingRetroPay et"ods delete t"e e+isting results and t"en reinstate t"ea ter t"e recalculation. *o6ever@ En"anced RetroPay dis0lays t"e statuso t"e e+isting results as Deleted and re9uires only a single u0date tot"e status a ter t"e recalculation. !"is eature reduces t"e ti e re9uiredto delete t"e run results and associated values. En"anced RetroPay alsointroduces run )alances t"at s0eed u0 t"e re-derivation o latest)alances 6it"in t"e retro 0rocess.

5.& etting +' RetroPa b Element !o set u0 RetroPay )y Ele ent@ you:

reate t"e retroactive ele ent. $y de ault@ 6"en you 0rocess anele ent in t"e RetroPay )y Ele ent 0rocess@ a retroactive nonrecurring ele ent 6it" t"e sa e na e as t"e original ele ent iscreated. *o6ever@ you can create a retroactive ele ent 6it" adi;erent na e ro your user-de%ned ele ents. !"e ne6retroactive ele ent s"ould "ave t"e ollo6ing attri)utions Non-recurring and #ulti0le entries allo6ed.

I you create a ne6 retroactive ele ent@ enter its na e in t"e RetroPayEle ent %eld o t"e Ele ent Descri0tion 6indo6 or t"ecorres0onding ele ent. or e+a 0le@ you could call t"eretroactive ele ent Retro 5verti e and t"en t"e retro a ountsdo not a00ear on t"e S5E under t"e sa e na e as t"e )aseele ent 5verti e.

Hin ele ents )ase and corres0onding retro to your 0ayroll. Enter retroactive c"anges using Date!rac . reate an ele ent set including t"e ele ents or retroactive

0rocessing@ or e+a 0le@ )ase ele ents suc" as o 0any5verti e.

reate an assign ent set including t"e assign ents to use in t"e retroco 0arison.


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5.1,Retroacti e Element Defnition ou use RetroPay )y Ele ent to calculate a )rea do6n o retroactive

0ay ents )y ele ents and ti e 0eriods in 6"ic" t"ey 6ere earned.*aving se0arate RetroPay ele ents or eac" ele ent included in t"eRetro0ay 0rocess eans t"at t"ey a00ear as se0arate entries on t"e0ay advice and can )e costed se0arately.

5.11 etting +' En8anced RetroPa !"e setu0 ste0s are as ollo6s:

Set u0 a RetroPay de%nition t"at grou0s RetroPay co 0onents. reate Retro o 0onents.

De%ne t"e RetroPay ele ents t"at 6ill receive t"e retroactivead>ust ents. Hin t"e RetroPay ele ents to t"e relevant 0ayroll. Enter retroactive c"anges using Date!rac .


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5.12Running En8anced RetroPa !"is slide su ari=es t"e 0rocessing o0tions 6"en you run En"anced

RetroPay. !"e 0ara eters t"at you c"oose are: E;ective Date@ 6"ic" is t"e date ro 6"ic" you 6ant to )egin your

RetroPay 0rocessing Payroll

5.13*osting RetroPa Results ou can enter override cost codes or t"e individual entry results o RetroPay ollo6s t"e standard cost allocation rules or ele ents Accu ulate and !rans er cost in or ation as 0art o t"e regular 0ay cycle in

t"e current 0eriod

5.14Retro*osting !"e Retro osting 0rocess ensures t"at t"e costing in or ation entered or

0ayroll 0rocessing is correct. !"e 0rocess recalculates costing records using current costing in or ation

and t"en co 0ares t"ese results 6it" t"e e+isting costing in or ation.


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Net-to-Gross

6.1 / er ie0 In a nor al 0ayroll run@ you arrive at t"e net a ount to )e 0aid to t"e

e 0loyee ro t"e gross salary. !"e Net-to-Gross 0rocessing reversest"is a00roac" and re9uires a series o 0ayroll runs iterative 0rocessingto derive t"e accurate gross a ount.

Net-to-Gross 0rocessing ena)les you to calculate t"e gross a ount needed to

eet a %+ed net a ount@ or e+a 0le a )onus. ou de%ne an earnings ty0e t"at is a %+ed net a ount and t"e ta+es andot"er deductions you are 6illing to 0ay )y selecting t"e )alances t"atcan )e used in t"e Net-to-Gross 0rocessing.

6.2 *reating a Net to Gross Earnings 'e A erican and anadian users create a Net-to-Gross earnings ty0e using t"e

Earnings 6indo6. Initially@ you s"ould ensure t"at you set your e;ectivedate early enoug" to "andle any "istorical entries you ay 6ant toa e.

!"e calculation rule you select generates a or ula called Tearnings

na eUC GR; 6P4+5AT4A#;6NT @ 6"ic" you can con%gure inecessary. Please ensure t"at you select t"e correct calculation rule oryour country:

GR5SS3PC HA!CA#53N!CN5NRE 3R 3S lat A ount or Net to Gross anada ou revie6 t"e list o )alances in Grossu0 Processing and clear any Include

c"ec )o+es or )alances t"at you 6ant to e+clude ro t"e Grossu00rocessing.

ou can also e+clude )alances or individual ele ent entries using t"eE+clude $alances 6indo6.


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A ter you save your 6or @ you can revie6 t"e co 0onents or t"e earningsand a e c"anges to t"e . *o6ever@ you cannot a end any detailsusing t"e Earnings 6indo6. Instead@ you "ave to delete all generatedco 0onents and re-initiate t"e earnings.

6.3 Net to Gross Processing E!cluding #alances


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Allo6ances or deductions c"ange. Proration unit can )e 0eriods@ days@ or "ours. ou can a00ly Proration to a

onetary@ ti e-)ased@ or nu eric a ount.

6.6 Proration etu' !o 0rorate an earnings ele ent@ suc" as )asic salary@ you assign an event

grou0 to it. An event grou0 is a collection o 0roration 0oints t"at s"aresi ilar c"aracteristics.

ou can create an event grou0 or all 0roration 0oints t"at a;ect ane 0loyeeOs salary@ or e+a 0le. !"is event grou0 could contain0roration 0oints suc" as salary increases@ assign ent c"anges@ and 0ayrate c"anges.

ou t"en 0rocess t"e ele ent using a or ula t"at "andles 0roration. ou caneit"er use a 0ayroll or ula t"at "andles 0roration or create a se0arate0roration or ula@ using t"e 0rede%ned e+a 0les@ t"at runs a ter t"eain 0ayroll or ula only in 0ayroll 0eriods 6"en a 0roration eventoccurs.

6." Historic Rates !"e "istoric rates unctionality is 3.V. s0eci%c. It retrieves a datetrac ed

oney value and recalculates it according to di;erent ti e-di ensionsconverting a daily 6age to "ourly . ou can use "istoric rates todeter ine e 0loyee 0ay ents at t"e rate t"at a00lied 6"en t"e 6or6as done@ rat"er t"an at t"e current rate.

*istoric rates are t"e values o a s0eci%c ele ent or co )ination oele ents@ )ased on a s0eci%ed ti e di ension at a s0eci%ed date.

6.$ Rate 'e -n(ormation or ost rate calculations@ a single ele ent 0rovides t"e 0ay rate. *o6ever@

so e rate calculations are t"e su o ulti0le ele ents. or e+a 0le@ a"oliday rate could )e t"e su o :

$asic 0ay "eld as a 0rogression 0oint S"i t Allo6ance an in0ut value $onus a glo)al value


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6.1,*ontract 'es able ou use t"e user-de%ned P


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@ T"ird-Party Pay!ents

$.1 /b;ecti es #anaging !"ird-Party Pay ents


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Assign t"e 6age attac" ent deduction ele ent to t"e e 0loyee as anele ent entry 8 Record a00ro0riate data

$.5 Pa ee /rgani


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going@ you can set a deduction end date. Alternatively@ set u0 t"e deduction or 5racle Payroll to sto0 0rocessing 6"en

t"e )alance is 0aid in ull.

$.& 8ird Part Processing Priorities ou deter ine 6"en to deduct eac" t"ird 0arty 0ay ent ro an e 0loyeesO

earnings@ using ele ent classi%cations and 0rocessing se9uences. or e+a 0le@ you ay need to ensure t"at 5racle Payroll 0rocesses court

orders )e ore ot"er deduction ty0es. ou ay also need to 0rioriti=e t"ecourt orders urt"er to ensure t"at 5racle Payroll al6ays 0rocesses c"ildsu00ort deductions )e ore education loans. In t"is e+a 0le@ t"ese t"ird0arty 0ay ents )elong to an ele ent classi%cation 6it" a lo6 nu )ered0rocessing se9uence. !"is ensures t"ey are 0rocessed )e ore all ot"erdeductions.

!o ensure 5racle Payroll 0rocesses your c"ild su00ort 0ay ents )e oreeducation loans@ you could deter ine a secondary 0rocessing se9uence.

ou do t"is in t"e Ele ent Entries 6indo6. I you donOt s0eci y asecondary 0rocessing se9uence@ t"ird-0arty 0ay ents are 0rocessed indate order.

Instructor Note !"e et"od o setting 0rocessing 0riority ay vary )et6een locali=ations.

$.1,Protected Earnings ou can use t"e 0rede%ned or ulas to deter ine "o6 t"ird 0arty 0ay ents

are 0rocessed in your organi=ation. or e+a 0le: Deter ine t"e a ount o 0ay lia)le or t"ird 0arty deductions. or e+a 0le@

t"e e 0loyeeOs ta e "o e 0ay a ter ta+ and ot"er deductions@ and t"ea ount t"at is 0rotected or e+e 0t ro t"ird-0arty deductions.

$.11Producing *8ec:s?*8e7ues (or 8ird Part Pa ments


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payroll fundamenal 02082013

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