Payroll
Content
Many earnings and deductions - such as salary, pension deductions, and taxes - a re discussed under specific functional headings, such as Salary and Grade Relate d Pay, or Savings and Retirement, or Payroll Statutory Deductions. In this area, we look at payroll earnings and deductions, such as wage attachments, that have not already been covered under other functional headings. We also focus on additional setup required by Oracle Payroll for processing earn ings and deductions. This setup includes the creation of formulas and balances. In some localizations, and for certain types of earnings and deductions, you can select template elements in the Configuration Workbench, or you can use the Ele ment Design Wizard or template windows to generate all the components required f or payroll processing, including elements, formulas, balances, and formula resul t rules. Certain types of earnings and deductions require additional setup to enable spec ial processing such as net-to-gross and proration, where this is enabled for you r localization. Such setup is also discussed in this section. Note: Mexico only: Oracle HRMS for Mexico does not support net-to-gross processi ng. Formulas Frequency rules Payroll balances Earnings and deductions templates Proration Net-to-gross processing Third party payments Payroll Earnings and Deductions Oracle HRMS provides an integrated solution for Human Resources and Payroll. The refore your setup of compensation and benefits supports both compensation manage ment and payroll management. Can Oracle Payroll handle complex calculations? Yes it can, through its use of formulas to specify calculations for each earning s or deduction. These formulas use values from the HRMS database and can include conditional logic to perform different calculations for different groups of emp loyees. For example, they can check balances or employee status to control how t o process the earning or deduction. Many of the formulas you need, for example f or tax calculations, are supplied with Oracle Payroll. How do you control when each earning or deduction is processed? The sequence of processing in a payroll run is determined by classifications, su ch as Pre-tax Deductions and Tax Deductions. You can also prioritize the process ing for an individual employee, for example to determine the order in which dedu ctions are processed for wage attachments. You control whether any value is processed just once, in every payroll run, or p eriodically (such as once a quarter). Your formulas can also change or stop the processing of an earning or deduction during a run, based on employee status. How do you accumulate and review balances?
The system can accumulate balances of payroll run results or values entered befo re the run. You can accumulate a balance over different time dimensions such as current run, month, and year to date. You can review balances after payroll proc essing and use balances to control the processing performed in the payroll run. Can I set up new balances, for the values that are important to my company? Yes, you can define whatever additional balances your enterprise requires. For e xample, you may require a Pensionable Earnings balance for a defined benefit pen sion plan your enterprise offers employees. How do you enter compensation values for the payroll run? Some values, such as salary, can be entered once and used in every payroll run ( or periodic runs) until you need to update them. Other values, such as hours wor ked, need to be entered or calculated fresh for each run. You can do one of the following: Use default values (which may be different for groups of employees) Enter values employee-by-employee Enter values in a batch Leave it to the system to enter values based on calculations performed durin g the payroll run You can define validation rules to minimize data entry errors. Wage Attachments What wage attachments can I process using Oracle Payroll? The wage attachments that you can process depend on the specific payments that a pply to your legislation. Examples of payments include child support payments, e ducational loans, taxes to local authorities, alimony, and bankruptcy orders. See: Third Party Payments Overview US Only: When the court issues a release notice for a wage attachment, or if you receive a Form 668-D for a federal tax levy, you must end the employee's wage attachment . Oracle Payroll also stops processing wage attachments when the total owed is r eached. Oracle Payroll supports electronic funds transfer (EFT) of state child support g arnishments for the state of Illinois. However, all states accept the Oracle EFT format, but normally require different data dependent upon individual state req uirements. You can use the Illinois EFT format to send support payments electron ically to all states. You need to include only the information required by the s tate in the file. You create a separate file for each state containing different routing and account numbers, so you need to set up a separate third party payme nt method for each state.
The system can accumulate balances of payroll run results or values entered befo re the run. You can accumulate a balance over different time dimensions such as current run, month, and year to date. You can review balances after payroll proc essing and use balances to control the processing performed in the payroll run. Can I set up new balances, for the values that are important to my company? Yes, you can define whatever additional balances your enterprise requires. For e xample, you may require a Pensionable Earnings balance for a defined benefit pen sion plan your enterprise offers employees. How do you enter compensation values for the payroll run? Some values, such as salary, can be entered once and used in every payroll run ( or periodic runs) until you need to update them. Other values, such as hours wor ked, need to be entered or calculated fresh for each run. You can do one of the following: Use default values (which may be different for groups of employees) Enter values employee-by-employee Enter values in a batch Leave it to the system to enter values based on calculations performed durin g the payroll run You can define validation rules to minimize data entry errors. Wage Attachments What wage attachments can I process using Oracle Payroll? The wage attachments that you can process depend on the specific payments that a pply to your legislation. Examples of payments include child support payments, e ducational loans, taxes to local authorities, alimony, and bankruptcy orders. See: Third Party Payments Overview US Only: When the court issues a release notice for a wage attachment, or if you receive a Form 668-D for a federal tax levy, you must end the employee's wage attachment . Oracle Payroll also stops processing wage attachments when the total owed is r eached. Oracle Payroll supports electronic funds transfer (EFT) of state child support g arnishments for the state of Illinois. However, all states accept the Oracle EFT format, but normally require different data dependent upon individual state req uirements. You can use the Illinois EFT format to send support payments electron ically to all states. You need to include only the information required by the s tate in the file. You create a separate file for each state containing different routing and account numbers, so you need to set up a separate third party payme nt method for each state.
