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Agenda
NA payroll overview NA Payroll Business Process Setting up Pay Groups Defining Earnings Codes and Earnings Programs Defining Deductions Setting up the payroll process Setting up Garnishments Working with Paysheets Calculating Pay
Agenda Contd..
Confirming Pay Working with Checks and Direct Deposits Administering Interface with PS General Ledger Processing Retro Pay Reviewing, Deleting & Adjusting employee balances
NA Payroll Overview
Payroll for North America provides the tools to calculate Earnings, Taxes and Deductions, maintain balances and report Payroll data, how you want to group the workforce, when you want to pay them. Payroll system enables you to calculate gross-to-net pay, Leave accruals and retroactive pay, direct deposits.
NA payroll supports the following business processes: Set Up and Maintain Core Payroll Tables Set Up and Maintain Employee Pay Data Process the Payroll Post to General Ledger Pay Taxes Pay Third Parties Produce Reports Optional Features
NA Payroll Integrations
Payroll for North America Integrates with following PS applications:
Pro-ration typically happens whenever you hire, terminate, transfer or change the rate of pay for an employee in the middle of a pay period. Pro-ration rule is attached in Pay Group Table Paysheets page. Proration rule is applied both to salaried workers and hourly workers.
Set Up HRMS Product Related Payroll for North America Payroll Processing Controls Pay Group Table Definition
Set Up HRMS Product Related Payroll for North America Payroll Processing Controls Pay Group Table Process Control
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Set Up HRMS Product Related Payroll for North America Payroll Processing Controls Pay Group Table Calc Parameters
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Set Up HRMS Product Related Payroll for North America Payroll Processing Controls Pay Group Table Paysheets
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Set Up HRMS Product Related Payroll for North America Payroll Processing Controls Pay Group Table CheckDistribution
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Set Up HRMS Product Related Payroll for North America Payroll Processing Controls Pay Group Table Check Sequencing
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Set Up HRMS Product Related Payroll for North America Payroll Processing Controls Pay Group Table Report Parameters
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Set Up HRMS Product Related Payroll for North America Payroll Processing Controls Pay Group Table Bank/Tip Info
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Set Up HRMS Product Related Payroll for North America Payroll Processing Controls Pay Group Table Time & Labor
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Earnings Code Determine the different types of earnings that an organization requires, and decide which three-character earnings code to assign to each one (such as REG, VAC, and HOL). You must define earnings codes for regular and overtime pay and you might also define earnings codes for sick pay, holiday pay, vacation pay
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Set Up HRMS Product Related Payroll for North America Compensation and Earnings Earnings Table General
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Set Up HRMS Product Related Payroll for North America Compensation and Earnings Earnings Table Taxes
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Set Up HRMS Product Related Payroll for North America Compensation and Earnings Earnings Table Calculation
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Set Up HRMS Product Related Payroll for North America Compensation and Earnings Earnings Table Special Process
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Earnings Program
Earnings code must be associated to earnings program in Earnings Program table. An earnings program is a set of earnings codes that are valid for one or more pay groups. An individual employee can belong to only one program. The earnings program that you enter on the Company - Default Settings page becomes the default earnings program for the pay groups that you define in the Pay Group Table component (PAYGROUP_TABLE). To override this default, specify a different earnings program for a pay group on the Pay Group Table - Calc Parameters page.
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Earnings Program
Set Up HRMS Product Related Payroll for North America Compensation and Earnings Earnings Program Table Earnings Program Table
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General Deductions: General deduction is any deduction that is not a benefit deduction. Pay elements like Charitable deductions, Union dues, Parking, Garnishments, Bonds fall into this category.
Set Up HRMS Product Related Payroll for North America Deductions General Deduction Table
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Use the Deduction Table component (DEDUCTION_TABLE) to select a plan type, enter a deduction code, and specify the deduction processing rules, including the priority of the deduction, how the deduction affects taxes, related general ledger account codes, and other special payroll process indicators, such as how arrears should be handled. Use the General Deduction Table component (GENL_DEDUCTION_TBL) to define the rules for the actual calculation of general deductions such as parking or union dues. Use the Company General Deductions component (GDED_COM_TBL) to build a general deduction plan using the general deductions you have set up. Use the Benefit Program Table component (BEN_PROG_DEFN) to define the rules for the actual calculation of benefit deductions such as health plans and dental plans.
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A deduction subset is a group of deductions that you select from the standard set of deductions that you define for your company. Use deduction subsets to process only a subset of the deductions that have been set up on an employees record. For example, when running a bonus payroll, you may want to have 401(k) and garnishments deducted from the bonus checks but not medical, dental, savings bonds, and so on. The subset is added to the pay calendar, which sends it to the paysheet. When the payroll is run, any deductions that are not in the subset are not taken from any of the checks.
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Set Up HRMS Product Related Payroll for North America Deductions Deduction Subset Table
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Payroll for North America Employee Pay Data USA Tax Information Update Tax Distribution Employee Tax Distribution
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(USA) Process forms W-4 and W-5 Set up employee general deductions.
Payroll for North America Employee Pay Data USA Deductions Create General Deductions General Deduction Data
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Goal Amount: Enter the limit for the total amount of the deduction. After this goal is met, the deduction ends. However, if there is a maximum yearly deduction, and the maximum has been reached, the system does not take the deduction, regardless of whether the goal amount has been reached. For example, if the maximum yearly deduction amount allowed for United Way is 80 USD, and an employees goal amount for United Way is 100 USD, the system stops taking the deduction when 80 USD is reached. Current Goal Balance: Displays the total amount taken to date from the employees pay for this deduction. The system updates this amount after every payroll run, during the Pay Confirmation COBOL SQL process (PSPCNFRM). When the current goal balance equals the goal amount for this deduction, the system automatically stops taking the deduction. If you want the deduction to start again, you must increase the goal amount to the new total to be deducted.
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Payroll for North America Employee Pay Data USA Deductions Override Benefits Deductions Benefit Deduction Override
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Payroll for North America Employee Pay Data USA Request Direct Deposit Direct Deposit
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Maintain optional payroll data. Payroll for North America Employee Pay Data USA Update Payroll Options Payroll Options 1 & Payroll Options 2 Maintain garnishments, savings bonds, and other payroll data.
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Administering Garnishments
Wage garnishment, the most common type of garnishment, is the process of deducting money from an employee's monetary compensation (including salary) as a result of a court order. In the United States, such payments are limited by federal law to 25 percent of the disposable income that the employee earns. Garnishments can be taken for any type of debt but common examples of debt that result in garnishments include: Child support taxes Unpaid court fines any other type of money judgement When served on an employer, garnishments are taken as part of the payroll process. When processing payroll, sometimes there is not enough money in the employee's net pay to satisfy all of the garnishments. In such a case, the correct order to take a garnishment must be satisfied. For example, in a case with federal tax, local tax, and credit card garnishments, the first garnishment taken would be the federal tax garnishments, then the local tax garnishments, and finally, garnishments for the credit card
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This chapter discusses how to: Create paysheets automatically. Enter hours or amounts using rapid entry paysheets. Load paysheet transactions. View and update paysheets and paylines. Record one-time deductions. Record one-time garnishments. Record one-time tax deductions. Set up and process payback deductions. Process gross-ups. Create final check paysheets. Review paysheet balances. Generate paysheet reports.
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Paysheet Creation:
Payroll for North America Payroll Processing USA Create and Load Paysheets Create Paysheets Paysheet Creation
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Paysheet creation performs the following tasks: Initializes input for salary or hourly rates, hours, additional earnings, tax methods, and accounting information. Provides a data entry point for hours, additional earnings, one-time deductions, one-time garnishments, one-time taxes, and overrides to previously established employee-level data (such as the department to which it charges earnings). Provides for earnings and hours to be divided among two or more departments, accounts, locations. Uses the pay calendar and holiday schedule to automatically set up the holiday earnings code and hours for pay periods that contain holidays, using the holiday earnings code from the Pay Group Table - Calc Parameters (Pay Group table - calculation parameters) page. Establishes pro-rations for employees who work for only part of a pay period or have a data change (such as a pay increase or department change).
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Contd.. Creates multiple lines for employees who work at multiple jobs during a pay period (if you use the Multiple Job feature and established multiple jobs, or employment record numbers, for the employees). Provides for printing turn-around or data-entry documents, which you can distribute to department managers or supervisors. Automatically approves paysheet data, as specified by the Confirmation Required check box on the Pay Group Table - Process Control page.
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Rapid entry paysheets enable you to quickly input hours worked, amounts, or a combination of both for any number of employees. These are the steps to use rapid entry paysheets: Access the Rapid Entry Paysheet page using the template that is defined with the earnings codes that you plan to enter. Enter employees and their earnings. Run the validation process and view validation results. Use the Load Paysheets PSJob process (PYLOAD) to load this information into the standard paysheets created within Payroll for North America.
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North American Payroll Payroll Processing Create Paysheets Rapid Entry Paysheet
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North American Payroll Payroll Processing Create Paysheets Rapid Entry Paysheet
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Payroll for North America Payroll Processing USA Create and Load Paysheets Load Paysheet Transactions Load Paysheet Transactions
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Ok to Pay: You must select this check box to calculate pay for this record. If you clear the check box, the system bypasses the record and does not perform a calculation. Then, the Pay Confirmation Process deletes this record.
North American Payroll Payroll Processing Update Paysheets By Paysheet
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Paysheets: Before you run payroll calculations, you must create paysheets. Paysheets contain the data required to calculate employee pay for each pay period. To create a paysheet automatically, use the Create Paysheet COBOL SQL process (PSPPYBLD). This process gathers information about the employees for whom to process payroll from system tables and generates the pay earnings information for each payline. To create a paysheet manually, create a blank paysheet with only the pay begin and end dates specified. Use the paysheets in the Payroll Processing menu to enter time and any additional payroll-related information for the current pay period (such as earnings, frequency, onetime deductions, one-time garnishments, one-time taxes, accounting data, and tax periods) before you run the Pay Calculation process. Use the rapid entry paysheet functionality to quickly input basic payroll data entry information based on hours worked, amounts, or a combination of both. After you create paysheets, you can print them for review.
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Paysheets contd..: During the Create Paysheet process, the system scans all employees and selects the employees that are scheduled to be paid for the specified pay period. It recognizes them because their pay groups are assigned to a pay calendar entry that is associated with the pay run ID. When you create paysheets, the system performs the following tasks: Initializes input for salary or hourly rates, hours, additional earnings, tax methods, and accounting information. Provides a data entry point for hours, additional earnings, one-time deductions, one-time garnishments, one-time taxes, and overrides to previously established employee-level data (such as the department to which it charges earnings). Provides for earnings and hours to be divided among two or more departments, accounts, locations.
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Paysheets contd..: Uses the pay calendar and holiday schedule to automatically set up the holiday earnings code and hours for pay periods that contain holidays, using the holiday earnings code from the Pay Group Table - Calc Parameters (Pay Group table - calculation parameters) page. Establishes prorations for employees who work for only part of a pay period or have a data change (such as a pay increase or department change). Creates multiple lines for employees who work at multiple jobs during a pay period (if you use the Multiple Job feature and established multiple jobs, or employment record numbers, for the employees). Provides for printing turn-around or data-entry documents, which you can distribute to department managers or supervisors. Automatically approves paysheet data, as specified by the Confirmation Required check box on the Pay Group Table - Process Control page. Automatically creates multiple lines for Fair Labor Standards Act (FLSA) employees when the FLSA period is smaller than the pay period. Pay Run Id: To indicate for whom you want to create paysheets, specify a pay run ID on the Paysheet Creation page. This pay run ID groups together pay calendar entries from different pay groups for payroll processing.
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Calculating Pay
Business Process Summary In Payroll for North America, pay calculation is an iterative process. You can run and rerun calculations repeatedly until youre confident that the payroll data is correct. Here are the basic steps: Enter employee payroll information, create paysheets, and make updates and adjustments for the pay period. (Optional) Identify and fix potential errors using the Precalculation Audit Report (PAY035). Run the Pay Calculation COBOL SQL process (PSPPYRUN). Review calculation results and check for errors. Check payroll error messages online or print the Payroll Error Messages report (PAY011). View the results of paycheck earnings, deductions, and taxes using the Paycheck pages and various standard reports that you can print to verify the results of the pay calculation.
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Payroll for North America Payroll Processing USA Produce Payroll Calculate Pay Pay Calculation
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You can confirm a payroll while people continue to modify employee pay data, even though a final calculation or confirmation is underway. If you want last minute online changes to be included in a payroll for which the final calculation process has already been run (but not confirmed), you can rerun the final calculation process before confirming. Behind the scenes: Payroll for North America uses the following behind-the-scenes indicators to Mark paysheets with the final calculation status and with the status of any online changes to employee data: Locked for Confirm Indicator: The final calculation process sets this invisible indicator on the paysheets at the beginning of a final calculation. The preliminary calculation process clears this indicator.
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Paysheet Recalculation IndicatorThis indicator, which is also not visible on the paysheet, is set when online changes are made to employee pay data. Relevant values are: Available for Update: Indicates online updates made when the Locked for Confirm indicator is set (final calculation has been run) at the time the update is made. Needs Update: Indicates online updates made when the Locked for Confirm indicator is not set (final calculation has not been run) at the time the update is made.
Payroll for North America Payroll Processing USA Produce Payroll Confirm Pay Pay Confirmation
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When you make modifications to employee pay data, People-Code on the employee data pages reads the paysheet to see if the Locked for Confirm indicator is set. If it is, the system enables you to confirm the payroll without recalculation. If you rerun the final calculation selecting either the Only Calculate Where Needed or (Re)-Calculate All Checks option on the Pay Calculation run control page, the system applies all appropriate changes to the paysheets and ignores the Locked for Confirm indicator. The Locked for Confirm indicator is set at the beginning of the final calculation process for on-cycle payroll runs. Employee pay data changes made after the indicator is set are not included in the pay calculation unless final calculation is rerun. The Pay Confirmation process clears the Locked for Confirm indicator.
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Example Heres an example to show how these indicators work together: 1. You run final calculation. The Locked for Confirm indicator is set on the paysheets at the beginning of the final calculation run. 2. You make online changes to employee pay data. You get a message that tells you that the changes will not be picked up until the next payroll calculation (for this pay run or the next). The Paysheet Recalculation indicator is set to Available for Update. 3. You either confirm the payroll or recalculate the payroll. If you confirm the payroll, the online changes are not included. The confirmation process also clears the Locked for Confirm indicator and the Paysheet Recalculation indicator. If you rerun the final calculation, the changes are included. The changes are included whether you select Only Calculate Where Needed or (Re)-Calculate All Checks on the Pay Calculation run control page.
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Pay Confirmation
After you verify that the payroll calculation is correct and you run the Pay Calculation COBOL SQL process (PSPPYRUN) in final mode, you can run the Pay Confirmation process. Pay confirmation is the final step in running your payroll. Running the Pay Confirmation process indicates that youve reviewed and approved all payroll information for this pay run, and that youre ready to produce paychecks. After a payroll has been confirmed, you can generate checks, advices, and any other payroll reports. You can also generate the direct deposit, general ledger, or any other interface. You can review an employees check totals and payroll balances online.
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Once Payroll is confirmed, following are the tasks: Print paychecks and direct deposit advices. Generate a direct deposit file. Process online single checks. Record manual checks. Process a final check request. Determine whether to reverse or adjust a check. Reverse paychecks. Handle direct deposit reversals. Adjust paychecks. Reconcile checks. Reprint checks.
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This section provides overviews of checks, advices, and print processes, lists prerequisites, and discusses how to: Print checks and direct deposit reports by SQR reports. Print checks and direct deposit reports by RTF template using XMLP. View PDF print files in the Report Manager. View employees' self-service paychecks online.
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This section provides overviews of checks, advices, and print processes, lists prerequisites, and discusses how to: Use the Direct Deposit Create File process to create an electronic transmittal file used to transfer payroll funds directly into an employees bank account. The file contains direct deposit records for each company and bank/branch combination. Payroll for North America generates direct deposit transmittals by bank ID and account number. Therefore, regardless of pay run ID and pay group/pay end date, the DDP001 report captures all employees who have a pre-notification submitted or a direct deposit to be paid if their pay group has that bank ID and account number assigned. The report shows the transaction file generated, including the direct payment routing numbers used to direct deposit employees paychecks, employee name, and all the other information the system needs to complete direct deposits of payroll funds.
Payroll for North America Payroll Processing USA Create Direct Deposits Pre-notification Report DDP Pre-notification
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Online Checks
With Payroll for North America, you can calculate, view, and print a single employee check interactively, online. To process online checks: Configure the system for online check printing. Assign a pay run ID to the appropriate pay calendar. This is required to access the Online Check Paysheet page. Enter data on the Online Check Paysheet page. Enter the hours or an amount. If necessary, override Job data, taxes, deductions, or garnishments. Click Save and Calculate. View results of the calculation on the Online Check Print page and proceed in one of three ways: 1) Confirm and print the check. 2) Click the Change Data button to return to the Online Check Paysheet page to make changes. 3) Delete the check.
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A manual check is a check prepared outside of the Payroll for North America system. Because manual checks are created outside of the system, you must record them manually into Payroll for North America to update your employees earnings, deductions, garnishments, and tax balances. For example, employee 8101 was hired in a remote office on January 1. The clerk didnt notify the central office of the new hire. So, when the payroll was produced for the January run, the new employee didnt receive a check. The payroll clerk therefore calculated and produced a manual check to be processed in an off-cycle run. He then forwarded the check information to the central office to be entered into the system. Although manual checks are normally processed in off-cycle payroll runs, you can record them as part of your on-cycle payroll process if you choose.
If your organization uses the self-service View Paycheck transaction in the PeopleSoft Enterprise e-Pay application, you can run a separate process to create the PDF manual check available for self-service viewing by the employee.
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This chapter provides an overview of the interface with Oracle's PeopleSoft Enterprise General Ledger and discusses how to: Set up business units for general ledger integration. Group earnings, deduction, and tax expenses. Map expense groups to Chart-Field combinations. Prepare and transfer payroll data to General Ledger.
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Understanding the General Ledger Interface: Sending payroll data to General Ledger is one of the final steps in the payroll cycle. When you integrate Payroll for North America and General Ledger, you can automatically post earnings and deductions that are associated with a finalized calendar run to your General Ledger system. This section discusses: Prerequisites. Description of the interface with General Ledger. Integration points.
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Setting Up Business Unit for GL Integration: To map PeopleSoft HRMS and PeopleSoft General Ledger, use the GL/HR Business Unit Mapping component (BU_GL_HR_LNK). This section provides an overview and discusses how to: View general the ledger business unit definition. View journal generator template defaults. View the template's summarization options. Map business units.
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Grouping Earnings, Deductions and Tax Expenses: To group payroll expense activities, use the GL Activity Grouping component (PYGL_ACTIVITY_GRP). This section provides an overview of expense grouping and discusses how to: Group earnings expenses. Group deduction expenses. Group tax expenses.
You can have separate groups for earnings, deductions & tax expenses.
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Set Up HRMS Product Related Payroll for North America GL Interface GL Activity Grouping
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Mapping Expense Groups to Chartfield Combinations: To map expense groups, use the ChartField Expense Mapping component (PYGL_CF_MAPPING) or (PYGL_CF_MAPPING_CAN). This section provides an overview of expense mapping and discusses how to: Map earnings groups. Map deduction groups. Map U.S. tax groups Map Canadian tax groups.
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Understanding Expense Mapping: This section discusses: Mapping levels. Example of employee-level mapping. Component Search page. ChartField configuration.
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When resolving the mapping for a payroll record, the GL Interface PSJob process (PAYGL01) starts at the lowest level--employee--and determines whether there is a definition for the employee and activity group being processed. If it is not found, the search goes one level up, to the job code being processed, and continues up until a mapping for the current payroll record is found. The search stops when an entry is found. This way, you need only define mapping entries at lower levels where desired. For example, earnings could be assigned at the employee level while the employer expenses for taxes remain at the company level.
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Payroll for North America Retroactive Payroll Pay Load Retro Pay to Paysheets Retro Pay Paysheet Load
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Use the balance inquiry pages to view employee balances for deductions, garnishments, earnings, taxes, arrears, special accumulators, and YTD paycheck totals. You can also use these pages to view the adjustments that are made to employee balances.
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Typically, the system creates an arrears balance when an employees net pay in a pay period is insufficient to cover a deduction (provided, that is, that you defined a deduction code in the Deduction table to allow arrears). You can also create a deduction arrears balance as a payback balance for recapture in the next pay period, such as for a draw. Payroll for North America Periodic Payroll Events USA Balance Reviews Arrears Arrears Balances Change Arrears balances 1) Review the arrears balance from before and after the adjustment. Payroll for North America Periodic Payroll Events USA Balance Reviews Arrears Arrears Balance Adjustments 2) Identify the deduction arrears for which youre adjusting balances. Payroll for North America Periodic Payroll Events USA Balance Adjustments Arrears Adjust Arrears Balance1 3) Change the employees arrears balances. Payroll for North America Periodic Payroll Events USA Balance Adjustments Arrears Adjust Arrears Balance2 .
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Payroll for North America Periodic Payroll Events USA Delete Balances Balance Deletion
Balance Adjustments
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Deleting Employee Balances contd: Balance Year and Period: For the balance year, the system deletes employee balance records up to but not including: The period that you specify in the Period field. The period in which the last activity was posted to the balance. In February 2005, an organization deletes balances for the previous calendar year, specifying December 2004 as the period on the Balance Deletion page. The system: Deletes the balance records for the months of January through November 2004. Retains the balance records for December 2004.
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